Coinmama Review 2022 – The Pros and Cons
The Coinmama exchange is known for its security features and dedicated customer support. In this detailed Coinmama review 2022, we will discuss the various features of this cryptocurrency exchange including all the pros and cons and discuss the various payment methods available on the platform.
Coinmama is an international exchange registered in Ireland and offers limited cryptocurrency pairs for trading. The exchange is more geared towards customers who prefer transacting in major coins and does not offer cryptocurrency wallets. The Coinmama exchange allows the direct purchase of cryptocurrencies through fiat options utilizing debit/credit cards, direct bank transfers, and third-party payment processors such as Google and Apple Pay.
1. Highly secure exchange
2. Dedicated customer support team
3. Fee discounts for loyal customers
4. Strict KYC (know your customer) norms for better security
5. Multiple payment methods
6. Free deposits and withdrawals
1. Higher fees than other exchanges reviewed
2. No wallet support
3. Limited cryptocurrencies available currently
4. Only buy/sell, no trading activity
5. Users have had difficulty being verified
How to Register and Open an Account on Coinmama?
Head over to the Coinmama site and click on the sign-up button. You will be required to input standard details such as your full name, address, email ID and will also be asked to select a password. There is an additional step at this stage which is known as the Know Your Customer (KYC) procedure. You will be required to verify your identity and address details by submitting documents such as a driving licence or passport and utility bill. Once the exchange verifies these details, the account will be activated and you can start buying cryptocurrencies.
Once the account is verified, simply click on the Buy button and select the cryptocurrency you wish to purchase. Enter the amount of fiat currency you wish to spend such as US dollars and click on the buy button. On the next page, you will need to select the payment method and specify the wallet address where you wish to receive the coins purchased. The exchange will transfer the coins into your wallet once the funds are received by the platform.
Remember that Coinmama does not offer wallet options, so you will need to create a cryptocurrency wallet from a third-party service provider before you decide to transact on the exchange.
Background, Regulation, and Security of Coinmama
The Coinmama exchange was founded way back in 2013 and is one of the older exchanges that has stood the test of time. The Coinmama exchange is owned by Cmama Limited, a subsidiary of New Bit Ventures which is registered in Ireland. The Coinmama platform is registered by FinCen.
The platform offers services to customers in most regions of the world except Iran, North Korea, Cuba, Syria, Crimea, Sudan, South Sudan, Israel, Lebanon, Somalia, Hawaii, New York, Puerto Rico, Guam, Northern Mariana Islands, American Samoa and any other region that is subject to sanctions from the United Nations, United States or the UK. The detailed list of restricted locations can be checked here.
The Coinmama exchange does not permit multiple accounts and provides a two-factor authentication facility to ensure that users’ accounts are protected at all times.
The Coinmama exchange does not offer custodial wallets and is a better and more secure option for users who wish to receive coins in their personal wallets. Cryptocurrency exchanges have been hacked in the past and leaving coins on an exchange is always risky. However, there are no such risks on the Coinmama exchange and the coins are deposited directly into your cryptocurrency wallet.
Account Types and Limits
The Coinmama exchange offers four different account types ranging from level 1 to level 4 depending on the financial status of a person and the verification process opted for by the client. Level 1 verification requires completion of KYC by submitting identity and address documents while Level 2 and Level 3 require additional documents and spending of $2500 and $50,000 respectively. Level 4 is offered to select customers at the discretion of the exchange.
Daily and monthly transaction limits are applicable and differ based on the level a user has achieved. For example, a level 1 user can transact up to $5000 daily with bank cards and $15,000 through direct bank transfers. The total monthly limit applicable for level 1 is restricted to $30,000 from all means of transfers. A level 2 account holder enjoys higher limits and can transact up to $100,000 per month. For level 3 accounts, the limit is raised to $2,000,000.
Coins available on Coinmama
Coinmama offers purchases in these cryptocurrencies: Litecoin (LTC), Ripple (XRP), Ethereum (ETH), Bitcoin (BTC), Cardano (ADA), Bitcoin Cash and EOS.
Users can only sell Bitcoin through the platform. All other cryptocurrencies will need to be transferred to other platforms if you wish to sell them.
Payment Methods and Fees of Coinmama
The Coinmama exchange supports multiple modes of payment on its site. Users can pay either through debit/credit cards and also use a direct bank transfer facility. Both VISA and Mastercards are supported by Coinmama. The exchange also supports Skrill, Google Pay, or Apple Pay payments.
The Coinmama exchange currently supports these fiat currencies: US dollar, Australian Dollar, Canadian Dollar, Euro, and the British Pound.
The Coinmama exchange offers reduced fees as part of a loyalty program. Any user that transacts a minimum of $5,000 over 90 days gets a discount of 12.5% on fees. This tier is known as the Crypto Enthusiast level. Another tier known as Crypto Believer requires a minimum spend of $18,000 over a 90 day period of $50,000 lifetime spend. A user holding a Crypto Believer account is entitled to a 25% rebate on fees. So the more you transact on the exchange, the more discounts you get. It is a good method for rewarding loyal customers.
Coinmama charges fees depending on the type of account a user possesses. Ordinary accounts (Crypto Curious) are charged 3.90% fees while Crypto Enthusiast is charged 3.41%. Crypto Believer account holders are charged 2.93% as fees.
There may be additional fees charged by the bank such as a cash advance charge of up to 5%. International currency conversion fees may also be applicable if you decide to transact in a currency that is not supported by the platform. However, these fees and commissions are charged by the payment network and not by the cryptocurrency exchange. You will need to check with your payment service provider to find out the exact amount you will be charged while transferring funds.
The Coinmama exchange offers customer support in case a user requires help while transacting on the platform. Users can contact the customer team either through email or through a contact form available on the site. The customer help centre can also be contacted via phone (call back feature).
The Coinmama exchange also has a useful help section that documents answers to various frequent queries faced by a customer.
Final Verdict on Coinmama for 2022
The Coinmama exchange offers good security features and strong customer support. The platform also offers various discounts to its customers depending on their spending habits. Coinmama is a good option for customers who prefer to receive coins in their wallets directly without leaving coins on an exchange.
The platform offers a wide range of payment options and supports multiple fiat currencies. There are no hidden charges or commissions on the Coinmama exchange. All fees are listed on the platform and a user can compare different fees before selecting a payment method. However, the Coinmama exchange offers limited cryptocurrencies and does not offer trading ability.
The Coinmama exchange is also available in most countries around the world and is one of the most popular cryptocurrency exchanges. The account creation process is smooth and takes a few minutes. Adherence to KYC norms makes it a highly secure platform and you can transact on the platform easily and securely.