Coinmama review - is this broker 100% legit?
Want to buy Bitcoin fast with a credit card, but aren’t sure if Coinmama is safe to use? This guide will teach you how to use this website safely.
Coinmama is best suited for customers that want BTC fast. Read the full review BEFORE YOU BUY so you don’t waste your time or money!
Coinmama is a reputable, secure, and convenient Bitcoin broker. It is extremely popular because it offers one of the simplest ways to purchase BTC instantly—with a credit card and without verification.
Over 500,000 satisfied customers have purchased Bitcoin on the site. It has a clean interface, simple buying slider, and relatively easy verification process.
Despite early worries about the company’s transparency, it has grown to be one of the most reputable on the market.
That doesn’t mean everything is perfect. You pay heavily for what you get. Aside from high prices, it only supports Bitcoin and Ethereum (unlike rival Coinbase).
For what it is, Coinmama is great. It’s a fast, simple, and secure method of buying BTC hassle free.
Coinmama is registered with FINCEN and holds no crypto on users behalf. This makes it less susceptible to hacks. However, credit card information records are held. The exchange has never suffered a breach.
Despite being able to buy up to $150 without verification, the company does require documents for higher purchases. They also store credit card records.
Everything from the user-friendly buying mechanism to the straightforward interface make the UX on Coinmama spectacular.
In-depth tools, a detailed interface, and lush markets make Bitstamp’s trading experience one of the best in the business.
Customer support is reachable via email and they have extensive FAQs. Reviews are mixed across forums, but in general they are viewed favorably.
In my opinion, it’s a great exchange for purchasing BTC with a card, especially for beginners. That’s it though. For everything else, try a different exchange.
Coinmama is a cryptocurrency exchange founded in 2013. I saw that they were headquartered in Israel but registered in Slovakia to NBV International S.R.O. That raised some red flags, but my fears were instantly eliminated when I visited the site.
It offers extremely fast, secure, and simple purchases of BTC via credit card. And it operates nearly worldwide, with customers in over 200 countries. It’s also available in 23 US states.
It provides customers with a streamlined mechanism for purchasing Bitcoin or Ethereum. All purchases are facilitated directly with the company for added security.
“ We have come to work every day since 2013 to create the simplest financial service out there”
Good support, a beginner-friendly interface, and fast transactions make it one of the best ways to buy Bitcoin with a credit card. Unlike many competitors, it also allows you to purchase up to $150 of currency without verification.
Despite initial concerns about its transparency, the company is now extremely reputable and transparent. Its management and team are clearly visible on their About page as is the address of their parent company. My feeling is the company is truly dedicated to providing a safe, simple, and people-centric platform.
Despite all of the positives, it is a simple broker with limited options and very high fees.
For beginners looking for hassle-free Bitcoin purchases, you’ve found a match.
Here’s everything you need to know about buying your first BTC on the platform.
How Does Coinmama Work?
I was surprised to find that many users were confused about how Coinmama actually worked. They asked questions about selling BTC, trading with other users, etc. They even asked “can you buy Ripple on Coinmama?”. Let me clear up the confusion by showing how Coinmama works.
What is a Bitcoin Broker?
Coinmama is a Bitcoin broker. To paint the picture more clearly, they act just like a currency exchange at the airport—you take your cash to the exchange and trade it for foreign currency. Coinmama is just like that, except it’s a digital asset exchange. That means you exchange fiat currency (only USD or EUR) for cryptocurrency (only BTC or ETH).
In the case of this broker, you can use credit cards or cash deposits to directly purchase cryptocurrency from them. This is in contrast to a peer-to-peer exchange (LocalBitcoins) or a true digital asset exchange (Bitstamp).
Coinmama does not facilitate the selling of BTC (though they claim this feature is coming). And you cannot trade crypto.
Why is Coinmama So Simple?
I found that most users were drawn to Coinmama for the simplicity and convenience. Coinmama is so simple because it does not offer much except the purchase of BTC. There is no exchange, no wallet, no app, no nothing. Once you buy your currency, you must provide a wallet address for them to send it to. Coinmama will not hold it for you.Need a wallet first? Here are 9 Bitcoin wallets you can trust to keep your BTC safe.
You can only trade USD or EUR for BTC or ETH.
Is Coinmama 100% Legit?
Coinmama has been in business since 2013. At that time, many were skeptical of its security features. This was mainly because the people behind the operation were shrouded in mystery. Trusting someone to take thousands of your dollars on the promise to send you BTC is daunting, especially if you don’t even know who or where they are.
However, in 2018, things have changed. Coinmama is one of the safest, most secure, and transparent exchanges. It isn’t on the level of regulation of rival Coinbase, but it is very secure. The most common questions around the web were “is Coinmama safe” and “is coinmama 100% legit?”. The answer is YES.
Can US Customers Use Coinmama?
I also found a lot of Americans wondering if US customers were allowed to use Coinmama.
Coinmama operates in 217 countries worldwide, but only serves 23 US states. If you’re lucky enough to be in one, you have full access to Coinmama’s services, including credit card deposits.
How Do Coinmama’s Credit Card Fees
Compare to Competitors?
Coinmama is one of the most expensive brokers on the market. You pay for the convenience and security. Regardless of where you are from, you pay the same two charges. When you purchase BTC from them, you pay two fees:
For comparison’s sake, let’s say Coinmama’s “fee” is 10.5%.
Here’s how it stacks up to competition:
In my opinion, Coinmama’s fees are so high that it’s hard to justify purchasing BTC from them unless you are a beginner. If you’re a customer looking to conveniently purchase BTC for the first time, then it’s worth paying 10.5% for the convenience. If you’re experienced, then you should probably find somewhere else.
Does Coinmama Have Withdrawal Fees?
Coinmama has no withdrawal fees because it does not offer a wallet. Coinmama holds NO user currency. As soon as you purchase your BTC, you must enter the address of a wallet for it to be sent there. Therefore, there’s no reason to worry about withdrawal fees (you can just stress endlessly about the huge credit card fees!).
What Are Coinmama’s Buying Limits for Unverified Customers?
Coinmama likes to advertise the fact that you can buy BTC from them without verification. It’s true, but only in very limited amounts. You can only purchase $150 worth of BTC or ETH before Coinmama wants to know a little more about you. Their verification isn’t as invasive as other sites, and the process apparently isn’t as blood curdling, but it’s still a hassle. They aren’t nearly as regulated as Coinbase, though.
Coinmama Verification Levels and Limits
What I liked a lot about Coinmama was that they offered several levels of verification, and the process for getting verified was quite easy.
Some exchanges require a lot of documentation for trading, and some, like Bitstamp, are the equivalent of a dystopian sci-fi Big Brother.
Coinmama at least gives you some privacy. There are 3 levels of verification:
You can purchase up to $10,000 USD worth of BTC. It requires 1 valid government ID and a selfie of you holding that ID plus a note that says Coinmama and today’s date.
Accepted IDs are:
Coinmama only serves 23 US states, so a US passport won’t cut it for you. You’ve got to prove you live in one of the states they serve.
You can buy up to $50,000 worth of BTC. You need to submit a secondary ID and a utility bill or bank statement. Electric bill, cable, and gas bills are acceptable as are credit card statements.
You can buy up to $1,000,000 worth of BTC. You need to fill out a short form. Contact support to learn more.
Coinmama’s verification levels have no effect on your daily or monthly spending caps. It only increases the total amount of BTC you can buy. You are still subject to the $5,000 per day/$20,000 per month spending cap.
How Long Does Coinmama Verification Take?
I found varying claims across the web for Coinmama verification times. The company claims that during business hours it may take only 2 hours or so. Higher levels of verification can be up 6 hours.
However, the web disagrees. I found more than a few profanity-riddled, end-of-the-world fear mongering threads about how it was a “SCAM”. That’s a tad of an overreaction; it just takes a while to get verified sometimes.
How Long Does Coinmama Verification Take?
Coinmama, like literally every other platform in the crypto sphere, is buckling under pressure. They are a victim of their own success. Verification may take days. Some more than a week. Here’s a thread from Reddit where several users claimed to have been waiting more than a week without word.
How to Purchase Bitcoins With a Credit Card
I am not ashamed to say that Coinmama’s buying experience made me a bit giddy. It was so simple and convenient that I was blown away. The simple registration, convenient slider, and large buttons made everything a breeze. Seamless design, good colors, easy buttons—the UX is a 10/10. Here’s how to purchase BTC and ETH with a credit from Coinmama.
Step #1: Create Your Account
Go to Coinmama.com and register. It’s right on the front page.
Step #2: Verify Your Email
Click the verification link in your email. You’ll now be taken back to the site and have to log in again. Enter your email address and password.
Step #3: Verify Your Account
If you want $150 or less, skip to #4.
If you want to purchase large amounts, Coinmama needs to know more about you. To verify your account, click on the “Verify your account” tab to the left of the dashboard.
Choose your verification level and upload your documents. Here is a screenshot of the website’s support page on how to get verified.
Step #4: Buy Bitcoin
with an awesome slider bar
Buying Bitcoin on Coinmama is like taking candy from a baby. On the Buy Bitcoin page, just choose USD or EUR, and then choose your amount. You can use the nifty slider bar to find the amount you want or just enter it in manually.
Coinmama Reviews: Is it 100% legit?
Is it a safe place to buy Bitcoin?
Coinmama is one of the oldest names in the business. It’s a legit dinosaur of the industry. The company has been in business a time-bending 5 years! Coinmama’s DNA is built on solid core values and driven by their “secret sauce” aka their team.
Community sentiment is strong. In general, it is seen as a trustworthy, honest, and reputable (albeit expensive!) broker. It doesn’t do much, but for what it does, it is reliable and secure. As with all Bitcoin exchanges, I didn’t have to look far to find bad reviews with extremely poor spelling and grammar. I think the majority are just smear campaigns and disgruntled customers whose credit cards were declined. Both forum users and trusted BTC review sites had good things to say.
Examples of Positive Reviews
Examples of Negative Reviews
Like I said before, the most common complaints were high prices and failed payments/deposits not showing up. A few different users complain here about never getting their money. But from what I read around the web, the majority of those issues are easily fixed by contacting support or just waiting a bit longer.
Coinmama is legit. They are highly respected and reliable. There are some issues, but that’s due to overloaded support. Speaking to them or to Simplex (their credit card payment processor) resolves most issues.
Top 3 Coinmama Alternatives
for Lower Credit Card Fees
Buying Bitcoin with a credit card is awesome. Buying Bitcoin with a credit card and paying 10.5% is not awesome. Coinmama offers a fast, secure, and convenient way to buy crypto, but it’s best for beginners. It’s probably not worth the money otherwise. When you add their 5.5% fee to the 5% credit card fee, even the most whimsical spenders start to break a sweat. If you’re looking for lower credit card fees, here are the top 3 alternatives to Coinmama.
It is a fast, easy, and secure way of purchasing BTC, ETH, and LTC. It’s another example of a broker geared towards beginners. Over $20 billion dollars worth of crypto has been bought and sold on this exchange. It often acts as a gateway to the world of Bitcoin for newbies. The credit card fee is 3.99%, so you save quite a bit compared with Coinmama.
Bitstamp lets you reach for the digital currency stars by offering a simple mechanism for buying BTC with a card. There are functionally no limits to how much you can purchase/trade. You can also trade your digital assets for others on their exchange, which is one of the best in the industry. It was the first fully-licensed BTC exchange in the EU, so it is highly secure. The credit card fee starts at 8% but goes down to 5% depending on how much you purchase. The fee is higher than Coinmama, but Bitstamp doesn’t also work a 5.5% fee into its prices, so you are still paying less.
The home of Bitcoin is one of Europe’s most popular exchanges. Formerly known as Coinimal, Bitpanda is one of the world’s most accessible exchange. It offers 10 payment options. It has quickly emerged as one of Europe’s most popular exchanges, and it’s fees are not all that bad. While the fee structure isn’t disclosed publicly, it’s known to be around 5%. It’s higher than Coinbase, but still about half of Coinmama’s.
Coinbase Vs Coinmama | Which is Better
for Buying BTC with a Credit Card?
Being able to buy Bitcoins with a credit card is a modern miracle. It has made the world of crypto so much more accessible to the world. Instead of having to actually wire money and wait for days (oh, the agony!), you can now punch in a few numbers and get your BTC deposited instantly. Even with higher fees, it is still worth it for the convenience.
Two of the biggest names fighting for the title of “best Bitcoin broker that accepts Visa” are Coinbase and Coinmama. Both are highly respected, easy to use, and as secure as it gets in the crypto world. But one is still superior than the other.
Before I compare the two, let’s take Coinbase’s pulse first:
When it comes to Coinmama vs Coinbase, it’s clear that they are both extremely secure and reputable. As Bitcoin brokers, they both offer a fast and simple way to buy BTC instantly. However, I think Coinbase is clearly the winner. Not only does it offer more currencies at a lower credit card fee, it also gives you easy access to the GDAX exchange. As if it needed any more help, it also has a wallet and an app. Sorry Coinmama, you lose.
You want to be certain about a broker before you enter your credit card details. I’ve aggregated the most common questions about Coinmama around the web and answered them here for you. Make sure to read them before buying your BTC!
Q: Is Coinmama Safe?
A: Yes, Coinmama is one of the most secure and reputable brokers on the market.
Q: Does Coinmama Accept Credit Card?
A: Yes, Coinmama operates in the US but only in 23 states. Check to see if your state makes the list.
Q: Does Coinmama Require Verification?
A: For under $150 worth of BTC, there is no verification. Anything over that requires ID.
Q: How Long Does it Take Coinmama to Send Me My Bitcoin?
A: Once the purchase and address are confirmed, the transfer SHOULD BE instant. However, as of January 2018, some users are complaining of delays.
Q: Can I store my Bitcoin on Coinmama?
A: No, Coinmama does not offer a wallet.
Q: How Much Does Coinmama Charge to Buy Bitcoin?
A: You will pay the Coinmama fee of 5.5% + a 5% credit card fee.
Q: Is Coinmama a Scam?
A: No. Coinmama is 100% legit. They are registered with FinCEN and based out of Israel.
Q: Can I Only Buy Bitcoin?
A: No, Coinmama also offers Ethereum.
Q: How Long Does Verification Take?
A: Normally it takes only a few hours, but when support is swamped, it can take a few days.
What Cryptopositive Likes/Dislikes
Coinmama doesn’t offer much and has extremely limited functionality, but it serves its purpose. For what it does, it’s a great broker. It’s easy to focus on the negatives, but it never claims to be anything other than a simple way to buy BTC with a credit card. So, in that respect, it delivers.
Registration and verification are easy, purchasing is easy, and deposits are instant. Clean, easy, and convenient—that’s what Coinmama is.
Still, there’s a lot to dislike.
Coinmama is one of the most secure, honest, and convenient Bitcoin brokers out there. It offers a simple and convenient way to buy Bitcoin with a credit card but that’s about it. The UX is great, buying is pretty easy, and you don’t even need to get verified if you want $150 worth of BTC or less (minus the fee).
For higher limits you have to provide verification and you only have access to Bitcoin or Ethereum. The functionality and security are great but your options are limited. The simplicity has an advantage, though—it forces you to set up a wallet!
Coinmama is a secure and convenient way to buy Bitcoins nearly instantly with a credit card, but be prepared to pay!