In the past half-a-decade or so, Bitcoin has evolved from being just a fancy thing for the hobbyists, to a serious investment and exchange tool. Today, users can simply deposit their money through their credit or debit cards and purchase bitcoin or any other cryptocurrency in seconds. One of the first cryptocurrency exchanges to unleash the potential or Bitcoin by integrating electronic payment systems in the world was Coinmama. What initially began as a cryptocurrency subsidiary of an Israeli conglomerate now happens to be one of the biggest cryptocurrency exchanges in the world with more than a million customers worldwide boasting users from over 180 countries. The company is currently based in Slovakia and is led by CEO Asaph Schulman. This Coinmama review has all the necessary details for you to decide whether to use this platform or not.
The Service Platform
Coinmama is an exclusive web-only platform. Users who are used to trading cryptocurrency with the convenience of their mobile may, at first glance, be dissuaded to use Coinmama. However, the website’s excellent interface and settings does make it easy to use even on a mobile browser. Through the platform, users can buy eight different types of cryptocurrency, including Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Cardano, Qtum and Ethereum Classic. One of the biggest limitations of Coinmama is its buy-only option, which means that there is no option for users to sell or exchange their existing cryptocurrency with another one through their platform. In fact, users don’t even get any wallet account through the exchange, but users can, however, transfer their amount to their specified wallet address. For all transactions, Coinmama charges a commission of 5.50% in addition to the bank fees, which may be discouraging to some users.
One of the biggest strengths of Coinmama is its security. Because it exclusively focuses on buying, and not depositing or selling, the bulk of the security liability is on the users. The platform is very compliant financial regulators across the world like FINCEN and requires the genuine details of every single user. However, once users are verified, doing any purchase transaction gets very easy with Coinmama as users can easily start trading with their debit or credit card. To make higher value transactions through the platform, users will need to add more KYC details. Users also need to be aware of the fact that although Coinmama doesn’t retain any cryptocurrency balance, they do keep the credit card details, which is why users need to be extra careful about handling their data.
Users will firstly have to sign up with their email address and sign up with their real identity details. The company then requires an email verification. Once the email verification link is clicked, users will need to enter other verification details like date of birth, gender, location, and credit card details. Users also need to send scans of both sides of their documents in order to complete the registration. Once all the details are filled, it usually takes a few hours for the user to get the initial verification, following which users can start buying cryptocurrency through the platform, albeit with lower maximum limits. All verified users can purchase up to $5000 worth of cryptocurrency a day, while the monthly limit is $30,000, with the minimum per transaction limit being $60. The limit can climb up to $1 million as users put more verification details and comply with its Level 3 verification.
While Coinmama is one of the most widely accepted cryptocurrency exchange, there are some territories and states where the platform isn’t allowed to operate in. Thus, users may not be able to perform transactions through the website, if their credit/debit card originates from these locations. As users can only buy cryptocurrency with Coinmama, they need to use third-party wallets or hardware wallets to hold their cryptocurrency balance bought from the platform. Therefore, unlike services like CEX.IO or Coinbase, users need to depend upon multiple services to successfully purchase cryptocurrency through Coinmama. However, if you take the advise of the experts, using a secondary wallet usually tends to be more secure than using the wallet services of the exchanges. But this may indeed add some inconvenience to the inexperienced users.
Performing transactions with the platform
Once the initial verification is complete, users can promptly start placing orders of their choice of cryptocurrency through the platform. One of the major advantages of this platform is the fast processing of transactions. As soon as a user places the order, the current exchange rate is locked by Coinmama and users get the exact amount they are displayed initially, without charging any extra hidden fees or exchange differences. In case a transaction is aborted, the exchange refunds the money in the users account within 2 days. If you believe the words of experts, in Coinmama exchange rates, are better than average.
Support and Customer Care
Coinmama has a very responsive customer care service, which is probably one of the best among all exchanges. It’s been observed that the exchange usually replies to customer queries within 24 hours. It also operates a Zendesk-powered live chat assistance, that some users may find useful.
Although Coinmama isn’t the biggest cryptocurrency exchange service, it is nonetheless one that has a huge devoted user base that has stuck with the platform. The exchange also supports a larger number of currencies compared to some major exchanges. However, with only the option to buy cryptocurrencies, users who prefer a complete exchange may be discouraged to adopt this platform. Coinmama fees can also be unexpectedly expensive depending upon the policy of the user’s bank. For all these years, Coinmama has kept on depending exclusively upon their website and have never launched a mobile app. This is perhaps something that the management of Coinmama does need to consider more seriously in the coming days. But that being said, Coinmama isn’t the only popular cryptocurrency exchanges that have stuck with the browser. To conclude, Coinmama is a very trustable platform for buying cryptocurrency and its strength clearly outweighs its weaknesses.