Why Does Coinmama Suck In 50 Words
Coinmama has some pretty high fees, so if you are looking for the budget approach to acquiring Bitcoins, this probably isn’t the right way to do it. With a 5.9% transaction fee and 5% credit card processing fee, you see a lot of your profits get eaten up right away.
Why Coinmama Doesn’t Suck In 50 Words
Convenience. It’s very easy to buy Bitcoin and altcoins using just a credit card. You won’t have to go through complicated order types, you will not have any order filling issues, and basically, after you go through the registration process, buying Bitcoin is as easy as a few clicks. As a 2019 addition, now users can also sell Bitcoins (this option is currently available only for Bitcoin, through European banks that support SEPA bank transfers).
Is Coinmama A Scam?
Since their launch in 2013, Coinmama hasn’t experienced any security breaches, but this is somewhat normal considering that client’s funds are not stored at the exchange. In other words, Coinmama doesn’t provide wallet services, so you simply enter the Bitcoin amount you want to buy and after paying, it will be sent to the wallet address you provided. This lowers the risks associated with exchange hacks, and we know that even the biggest players have been the target of such attacks.
As for ill intent from Coinmama themselves, so far there haven’t been any notable incidents, so there’s no suspicion of a scam. On top of that, both companies that own/operate the exchange are registered with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), which takes them further away from the realm of scams.
Should I Open An Account With Coinmama?
Coinmama is a cryptocurrency exchange launched in 2013 that allows its users to buy and sell Bitcoin and altcoins using credit cards and bank accounts. The exchange is a property of New Bit Ventures Ltd and is operated by NBV International s.r.o., a company incorporated in Slovakia. They offer their services to clients from more than 200 countries and both companies are registered as Money Services Businesses with FinCEN, which allows the exchange to accept clients from 40 U.S. states. Transactions are carried out with NBV International s.r.o. and processed by New Bit Ventures Ltd.
If you are looking to easily buy Bitcoin and altcoins, this is a good choice, especially because it’s available in so many locations, including the United States. But this ease of use comes with a downside: they do not offer a trading platform, with charts, order books, and technical indicators. You simply enter the amount you want to buy and click, well… Buy. Of course, you have to go through account verification, which includes sending a pic of your ID and other procedures, which are normal for any crypto-to-fiat exchange.
In terms of payment methods, you can use Visa, MasterCard, or bank wires and the minimum purchase is 60 USD or its equivalent in EUR. As a relatively new addition (2019), Coinmama has introduced the option to sell your cryptocurrency, which is great in case you already own Bitcoin and are looking to cash out. However, this option is currently available only through European banks that support SEPA transfers and only for Bitcoin but according to Coinmama’s support, they are looking to integrate some altcoins as well.
Overall, Coinmama seems to offer a solid service. However, they are still trailing behind major exchanges such as Coinbase, which have a very similar offering, with possibly lower fees. On the other hand, Coinmama is present in more countries than Coinbase, so it may be a good choice, depending on your location.
NBV International s.r.o has a registered office at Prievozská 4D, 82 109 Bratislava, Slovakia, while New Bit Ventures Ltd is located in Israel, at 5 Ha’haroshet, Ra’anana. Coinmama doesn’t offer phone support but can be contacted at email [email protected].
Coinmama Online Presence And Reputation
This exchange is mostly flying under the radar, so they cannot be considered one of the “big players” and they don’t have a prominent online presence. As for their reputation, it is generally positive, except isolated incidents: one client called them scammers for not receiving his $200 worth of Bitcoin but later realized that Western Union was closed due to holidays and the money never reached Coinmama (he used WU because in the past Coinmama allowed this payment method but not anymore).
Coinmama Special Features
This exchange is as straightforward as it gets, without anything out of the ordinary. You simply buy or sell Bitcoin with a few simple clicks. However, we can consider the Sell option as an extra because it was just recently introduced, due to client demand.
Coinmama Overall Ratings
User Friendliness 18/20
The website is only available in English and there are no mobile apps available but the exchange gets high marks here because it’s incredibly easy to use after completing the account verification process. Also, U.S. clients from 40 states are accepted.
Range Of Markets And Volume 13/20
The only cryptocurrencies available to buy are Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, Cardano, Qtum, and Ethereum Classic. If you wish to sell, you can only use Bitcoin. It’s a restrictive digital asset offering, hence the lower score. As for volume, all purchases are made from Coinmama’s holdings, not from other users and so far there haven’t been any known issues.
Coinmama will charge a 5.9% transaction fee and on top of that, a 5.0% processing fee for credit/debit card payments. This adds up to quite a lot so we can safely say this is an expensive exchange. However, SEPA bank transfers are free of charge and SWIFT transfers incur a $20 GBP fee only if the sum is lower than $1,000, otherwise, they are free. Keep in mind that your bank may charge additional fees.
Deposits And Withdrawals 16/20
The accepted methods to deposit (to buy cryptocurrency) are Visa or MasterCard credit/debit cards and wire transfers (SEPA and SWIFT). The minimum amount to purchase is $60 (or EUR equivalent). Users who wish to sell Bitcoin can do so through SEPA accounts only.
Coinmama Extras 13/20
In 2019 they’ve added a cryptocurrency blog, which includes information about a few major coins and some news items. This can hardly be considered a major extra feature, but it’s worth mentioning because overall Coinmama is a very straightforward exchange.