Coinmama Review – Is it 100% Safe?

Coinmama is among the world’s most popular cryptocurrency exchanges, with a current customer base of over 200,000 users. For a short time, the platform only dealt with Bitcoin and Ethereum; however, there are now many other coins listed which include Ripple, Litecoin, Bitcoin Cash, Cardano, Qtum, and Ethereum Classic.

coinmama

Source of the image: https://www.coinmama.com/

Over the last couple of years, the crypto industry has boomed, and this has made coin exchanges such as Coinmama grow their trading volumes significantly. According to Coinmama, the global cryptocurrency value stood at $727 billion at the end of 2017, and this is only expected to grow beyond anyone’s wildest expectations by the end of 2018.

Let’s listen in as these experts offer some interesting insight about the future of digital money.

Indeed, the future of cryptocurrencies seems bright, but how bright is it for Coinmama?

In this Coinmama review, I’ll take you through how to get started on the platform, its accepted payment methods, the countries it operates in, its safety and legal status, as well as a few other things about the exchange.

An Overview of Coinmama

Brand Name: Coinmama Cryptocurrency Exchange

Digital Currencies: BTC, ETH, LTC, BCH, ETC, ADA, XRP, QTUM

Fiat currencies: USD, EUR

Deposit methods: Cash, Bank Transfer (SEPA), and Credit and Debit cards

Coinmama Fees and charges: Based on XBX index plus 5.90%

Credit card processing fee: 5.00%

How does Coinmama Work?

Coinmama is used by millions of cryptocurrency users, and the process of getting started is rather straightforward. You’ll first of all need to create an account here using your name, email address, password, and country of residence.

Prior to signing up, you’ll need to have a verified wallet that will be used to store your coins. The verification process will require you to provide proof of identity using documents such as an Identity Card or a driver’s license.

Acceptable Payment Methods

Coinmama currently accepts payments using two main methods:

  • Cash
  • Credit and debit cards (VISA and MasterCard only)

The VISA and MasterCard methods are accepted using the Simplex payment system. Cash payments, on the other hand, must be made via Western Union, and it should also be noted that the platform does not support bank wire transfers.

Supported Countries

Coinmama operates in over 180 countries globally, and in 23 US states including Arizona, California, Colorado, Florida, Illinois, Indiana, among others. You can check out a full list of countries and states here.

Is Coinmama Legit?

Yes, Coinmama is among the most trusted and legitimate exchanges in existence today. The platform allows you to buy crypto coins using cash or credit/debit cards. Furthermore, the company is also known for its efficient customer service, a trait that is not so common on most other exchanges.

If you’re looking to buy your digital currency on a platform without much verification and one-of-a-kind user privacy, you might want to check out Coinmama.

Is Coinmama Safe?

Legal status and safety always seem to go hand in hand – but here’s what you need to know about the safety of this platform.

A number of Coinmama users have expressed their satisfaction regarding the safety of the exchange. Take a look at what some of them had to say about Coinmama on affgadgets, one of the most reputable review website:

star ratingsHowever, just like any other exchange, extra caution must be taken at all times while transacting with cryptocurrency since there is always an element of risk involved.

What Coins Can I Buy On Coinmama?

As I mentioned earlier on in this post, this exchange mostly uses Bitcoin and Ethereum, but it does also offer other coins. Be sure to check out their website for an updated list of coins that can be purchase on the platform.

Note: Coinmama does not currently offer a sell-side function for its coins, meaning you can’t sell your coins back to them. However, they have reported on their website that the feature will soon be available.

coinmama pageWhat is the Lock Rate Feature on Coinmama?

This is a much-talked-about feature on this exchange – it allows users to lock the crypto rate at the time of a purchase. This enables the user to receive the exact amount of cryptos purchased, regardless of any fluctuation in the prices between the moment of purchase and when they receive their coins.

However, previously, Coinmama used to lock the order to the market rate instead of the crypto rate. This brought about a lot of misunderstandings between them and their clients. It was pretty much like ordering a pair of sneakers, only to have dress shoes delivered with a note saying that trends have changed since you first ordered your shoes.

Are There Transaction Limits on Coinmama?

Yes, the exchange has limits on their credit card and cash purchases. Users are allowed to transact up to $5,000 EUR/USD daily on top of their account verification status when paying using cash or credit cards. Furthermore, credit card purchases are limited to $20,000 EUR/USD each month.

Other than the minimum allowed trading limit of $5,000 each day, the limits placed by Coinmama depend on the verification level of the user. The levels are determined by how much personal details you reveal to the platform. The more details you present for your personal verification, the more your transaction limits will be increased.

There are basically three levels of verification:

1st Level: Requires the user to submit their non-US international passport (double page for non-US residents), a national ID card (both sides for US-residents), or a driver’s license (both sides) and it allows for a daily transaction limit of $10,000.

2nd Level: Requires the user to submit the IDs described in level 1 and an additional verification document. This can be in the form of a utility bill such as a cable bill, water bill, or property tax return. Please note that internet and paper bills are not acceptable.

3rd Level: This is the highest account level on Coinmama and requires you to fill in additional details after contacting their customer support team via [email protected]

Note that your minimum daily transaction limit of $5,000 is not affected by your verification level.

How Soon Will I Receive My Coins After a Purchase?

However simple the purchase process on this platform is, it can still take a couple of hours before receiving your coins. Since Coinmama runs on the Blockchain network, the technology normally takes a few minutes to confirm the transaction. This transaction time is standard regardless of the exchange you use.

Secondly, the credit card or debit card issuer may take some time to verify your purchase and will vary from one vendor to another. The same applies to cash transactions via institutions such as the Western Union.

Also, you will need to confirm the address of your wallet before Coinmama can send you your coins.

In a nutshell, the time taken to deliver your coins will depend on the following:

  • The time needed by the credit card or debit card issuer to verify your purchase
  • The time needed by the financial institution to verify your cash transaction
  • Whether your wallet is verified and if not, how long it takes you to verify it.

After all these, you should receive your coins faster than most other platforms since Coinmama sells the coins from its own holdings, and not from third parties, which would take longer to execute.

Are There Minimum Purchase Limits on Coinmama?

Coinmama has a minimum purchase limit of $60 USD or its equivalent in Euro. However, the minimum amount of Bitcoin you can purchase from the exchange is the equivalent of 0.1. Therefore, at the current rate of $6,696, you’d be allowed to make a minimum purchase of $669.90.

It is then safe to assume that at any given time, the minimum allowed purchase of Bitcoin on Coinmama is whatever amount listed for 0.1 Bitcoin.

Customer Service

Coinmama provides support via email; in addition to having a detailed FAQ section, and other customer support information on their web pages.

With a 24/7 support team, I’d say it’s nice to see an exchange working around the clock to improve its user experience.

Our Rating of Coinmama

Fees – 4/5 stars

Ease of use – 4.2/5 stars

Customer support – 4/5 stars

Reputation – 4.7/5 stars

Security – 4.5/5 stars

Overall Rating – 4.3/5 stars

The Reason Behind The Rating

Fees: Coinmama offers some of the best transaction rates with a detailed explanation of each amount deducted upon making a transaction.

Ease of use: If you’ve read any Coinmama reviews, you’ll notice that they all speak of one consistent thing: how easy it is to use this exchange.

Customer support: The platform offers a reasonably efficient customer support, as well as detailed FAQs and other essential guides.

Reputation: The reputation certainly does precede this platform, which boasts numerous positive reviews on various platforms.

Security: This is one of the core reasons as to why Coinmama has retained its spot among the top-rated exchanges worldwide. It features a two-factor authentication, information encryption, among several other security measures.

Pros

  • Provides live coin prices in crypto and fiat currencies
  • Operates in over 180 countries
  • Has an easy-to-use platform
  • Users can buy smaller fractions of coins such as 0.1 BTC.

Cons

  • Does not permit the sale of coins

Conclusion

In the end, Coinmama is known to be a reputable cryptocurrency exchange with key security features, and a trustworthy team behind it.

As much as it may not have all the features that some of its rival exchanges have, there’s no doubt that Coinmama does a great job at what it does. And, seeing as the “crypto craze” is only just starting to pick up momentum, we can only hope that the platform gets even better with time.

 

Comments