Coinmama is a popular cryptocurrency brokerage company which lets users buy a number of cryptocurrencies with their credit card.
Coinmama was launched in 2013 in Israel, but they are registered in Slovakia while still owned by New Bit Ventures which is based in Israel.
How does Coinmama work?
By some standards, Coinmama is not considered to be an exchange because it does not actually have a platform that enables cryptocurrency trading on their site. Its only purpose is to serve as a fiat gateway where cryptos can be bought using credit cards.
Note: Simplex no longer processes card transactions for Coinmama.
What countries does it support?
Coinmama offers its services in over 226 countries, including 23 states in the US.
Coinmama has very high fees compared to the market average. The coin prices include a 5.9% fee, and for credit/debit card transactions, their processors add another 5.00% fee (this fee is added after you select your method of payment). This totals up to a fee of 10.9%.
To put things into perspective, Coinbase charges 4% fees for credit and debit card transactions, 1.49% fees for transactions made from your Coinbase online wallet, and 1.49% for purchases made directly from your bank account.
How does the buying process go?
After you have signed up on their website by entering your email, password, details, and have received the confirmation email, you can move on to the next step in buying coins.
The process of buying coins from Coinmama consists of the following steps:
1. Submit your order.
2. Submit identity authentication documents.
3. Send payment.
4. Receive your coins.
After the payment clears, Coinmama will transfer the coins to your wallet.
Coinmama buying limits
The minimum amount of Bitcoins you can buy is its equivalent of $60, or that same amount in EUR. The daily buying limit is 5000 USD/EUR and the monthly limit is 20,000 USD/EUR.
Daily limits last 24 hours from the moment the order is submitted. Monthly limits start when a sum was transferred in the last 30 days.
To be able to make any kind of transaction, users are required to complete some form of identity verification. There are 3 levels of verification, and according to Coinmama, they have no effect on the buying limits.
1st level- Users must submit one valid government-issued ID, a selfie of them holding that ID and a note with “Coinmama” with the day’s date on it.
2nd level– A secondary ID must be submitted. In addition to the above IDs, a utility bill has to be uploaded.
3rd level– Involves completing a short form.
Which cryptos and payment methods are accepted?
Coinmama supports Visa and Mastercard credit or debit cards. The company has recently added SEPA payments, with 0% processing fees. Coinmama does not allow users to link their bank accounts.
The price rates are displayed in USD or EUR, but they accept all currencies.
Even though Coinmama is a small brokerage in the crypto market, they haven’t experienced any security breaches.
The exchange does not hold any of the users’ cryptocurrency and credit card details on their servers. Coinmama makes use of Trust Guard and Comodo to provide their customers with security, as both specialists use 256-Bit SSL encryption on the pages that feature private information.
Coinmama is a crypto brokerage that has a strong reputation in the community and it provides a safe and trustworthy service for those looking to purchase cryptocurrency with fiat funds and their credit card.