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Detailed overview of Coinmama as a Cryptocurrency Trading Platform

 

WHAT IS COINMAMA?

Coinmama is a Slovakia-based cryptocurrency exchange platform which was launched in 2013 with the purpose of simplifying the process involved with buying and selling cryptocurrencies.

Coinmama features an e-commerce store that specializes in the purchase of up to eight different major cryptocurrencies as the traditional trade in cryptocurrency has become a volatile market.

When considering the act relating to purchase and sale of cryptocurrency instead of conventional trading thereof, Coinmama efficiently caters for just such transactions through the provision of a comprehensive exchange, or rather e-commerce, platform.

Coinmama provides access to the global cryptocurrency exchange with around 1.5 million clients using its services in over 200 countries worldwide. Transactions are directly facilitated by Coinmama as opposed to other platforms that act as an intermediary.

 

HOW DOES COINMAMA WORK?

Coinmama facilitates transaction where cryptocurrencies are either bought or sold, which allows for fast and efficient transaction times at a considerably firm price.

Coinmama acts as a trading partner the same way that a bank is considered a seller when purchasing a money order, for instance. When buying a cryptocurrency through Coinmama, it is sent to a digital wallet.

Cryptos can be purchased in denominations of USD 100, 250, 1,000, or 3,000. But it is not only limited to these denominations, there is however a buying limit on transactions and there is a level of verification that will need to be passed before purchases can take place.

Buying limits are however not determined by the verification level of the trader and transactions have a minimum order fee of $60 or £60.

Unlike traditional cryptocurrency exchange platforms that require an initial deposit which is used to execute transactions, Coinmama requires clients to make payment at the end of the transaction, similar to ‘checking out’ when conducting online shopping.

Before funds can be paid over to successfully complete the transaction, there is a verification process that all clients must go through to confirm their identity and their residential addresses.

There are three levels of verification and each of these requires different documentation. The required documents are not much different than what is normally required.

The exception is the submission of a ‘selfie’ in which the client holds up a handwritten note with the word ‘Coinmama’ and the date written on it, when considering it in detail, is quite an efficient, simple yet sophisticated way in which the client’s identity can be verified.

 

IS COINMAMA REGULATED AND SAFE?

Yes, Coinmama is both regulated and safe, with an array of security and safety protocols in place to ensure a safe transaction environment and to ensure that client funds are kept safe.

Coinmama is registered under FinCEN in the United States as a business that provides money services and the regulations to which Coinmama has to comply are some of the most stringent.

One of FinCEN’s requirements is the provision of a stable security framework to ensure that client funds are protected, to which Coinmama confirms in ensuring that significant safety is offered to all Coinmama’s clients.

When considering the holding of funds, Coinmama does not hold digital assets on behalf of clients, making the platform a lot less susceptible to cyberattacks when compared to other exchanges.

Although Coinmama may not hold client funds, there is however a database and records pertaining to the credit/debit card information of clients, but these are not kept on exchange servers in an effort to keep the data safe.

Coinmama is one of the oldest, long-standing cryptocurrency exchange platforms in the proverbial crypto ecosystem as it has been in operation since 2013. The selling of crypto through debit/credit card payments around this time resulted in its reputability globally.

It is worth mentioning, however, that there was a substantial breach on the Coinmama website which occurred early 2019. According to reports, a total of 450,000 email addresses along with passwords were compromised.

Despite the breach, users of the Coinmama platform were immediately notified and all passwords that were compromised were immediately reset and in addition, users were advised to change their passwords with immediate effect.

 

WHAT COUNTRIES DOES COINMAMA SUPPORT?

As a Slovakia-based cryptocurrency exchange platform which offers its services in buying cryptocurrency in 200 countries, there are however restrictions, especially in U.S States and territories, amidst others.

Some of the U.S states that cannot make use of Coinmama’s services include, but is not limited to:

  • Hawaii
  • Iowa
  • New York City
  • Florida
  • Vermont, and more.

U.S Territories that are restricted to the services of Coinmama include, but is not limited to:

  • American Samoa
  • Guam
  • Puerto Rico
  • Virgin Islands, and more.

Some other countries and territories that cannot make use of Coinmama include, but is not limited to:

  • Cuba
  • Lebanon
  • Nigeria
  • South Sudan
  • Zimbabwe, and more.

COINMAMA FEATURES

 

COINMAMA PLATFORM DASHBOARD

Coinmama features an amazingly simple dashboard, although it may seem a bit daunting to beginner cryptocurrency clients. Clients who have previously visited exchanges such as Binance and Bitstamp may be quite familiar with the Coinmama dashboard.

There are no fluctuating prices or flashing indicators on the dashboard and the price is set. Within three clicks of the trader’s mouse, a transaction can be completed.

Clients will find the eight major cryptocurrency pairs offered by Coinmama in the top left part of their screens with four different pricing packages available for each.

Should clients wish to purchase cryptocurrency at a different price, the toggle on the screen can be moved to a more favourable amount. Cryptocurrency can also be sold from the menu dedicated to sales.

 

IS COINMAMA EASY TO USE?

It is fairly easy and straightforward to use Coinmama for the purchase and sale of cryptocurrency, although beginner clients may find it a bit confusing. After completing a few transactions, clients will start familiarizing themselves with it more comfortably.

 

COINMAMA WALLET

Coinmama does not provide clients with a native wallet and clients are advised to make use of wallets provided by either Blockchain or Binance as these are reputable, trustworthy wallets used by a variety of clients.

Although clients are free to open a wallet based on preference, it is advisable that clients ensure their wallet can process a variety of cryptocurrencies to avoid compatibility issues.

Clients can easily access various wallet reviews and use these to evaluate what the suitable wallet would be for their cryptocurrency trading, sale, or purchase purposes and needs.

 

COINMAMA MOBILE APP

Coinmama does not offer a mobile app. Coinmama’s services are used directly from the website which can be accessed by all web browsers.

 

LEVERAGE

Leverage allows clients to open larger positions against their initial deposit, and despite the size of this, which provides them with greater opportunities in which profits can be made.

When used incorrectly, leverage can also expose clients to substantial risks that can lead to losses that may exceed their initial deposit.

Although various brokers offer cryptocurrency as a leveraged financial instrument that can be traded, often only at ratio of 1:2, cryptocurrency exchanges such as Coinmama do not offer leverage.

There are fixed prices on the cryptocurrencies and when purchasing them, clients are liable for the transaction fees which are paid at the very end of the transaction.

 

FEES

There is a fee of 5.9% which is charged, and which is already included in the transaction price when either buying or selling cryptocurrency through Coinmama.

These fees are fixed and there are no fluctuations based on market conditions and the fees do not depend on the different cryptocurrencies which are purchased either.

Should credit or debit cards be used as the preferred payment method, there is an additional 5% which is added on. This totals to a whopping 10.9% fee which is overall substantially higher than what other cryptocurrency exchanges normally charge.

 

DEPOSIT AND WITHDRAWAL

Deposits and withdrawals can only be done through Credit/Debit Cards, Crypto Wallets, and Bank Wire Transfer.

Unlike most crypto exchanges where deposits must be made prior to transaction execution, Coinmama works in a different manner. Clients undergo a ‘checkout’ as with purchasing products online through e-commerce sites.

Once the trader has accepted the transaction they wish to execute, they are required to deposit the amount by using the listed payment methods.

The minimum deposit is in the form of a purchase amount of $60/£60 in Bitcoins, deposits will depend on the transaction costs to facilitate the transaction. Deposits are made directly to the trader’s account with Coinmama facilitating trades.

There is a daily limit of $5,000 or £5,000 which can be bought along with a monthly limit of $20,000 or £20,000.

The withdrawal process involves the provision of a wallet address to where the trader wants their cryptos delivered.

 

HOW TO OPEN AN ACCOUNT AND START TRADING

To open an account and start trading with Coinmama, clients can follow these steps:

  1. Clients can easily access the sign up form from the Coinmama website and fill in the required fields pertaining to the trader’s name, email, a user-selected password, and country of residence.
  2. Once the required fields have been completed, the trader can confirm the registration by following the link in the email that will be sent to the address registered.
  3. Clients can use their information to log into the Coinmama website/exchange portal and proceed with verifying their account.
  4. The account verification consists of various levels, and Level 1 consists of the submission of a National ID, and a ‘selfie’ where the trader holds up a handwritten note with the word ‘Coinmama’ and the date written on the note.
  5. To obtain Level 2 verification, the trader must submit proof of residence in the form of a utility bill, gas bill, or any other bill or official document which shows their residential address which is not older than three months.
  6. Level 3 verification consists of the completion of a short form. Other than this, there is no other information available and Coinmama support must be contacted to obtain the exact requirements and further details on obtaining this level.
  7. Once the trader’s account has been verified, purchase or sale can commence from the Coinmama Dashboard.

 

CRYPTOCURRENCIES

WHAT CRYPTOCURRENCIES DOES COINMAMA SUPPORT?

Coinmama only supports the following major cryptocurrencies:

  • Bitcoin – BTC
  • Ethereum – ETH
  • Ripple – XRP
  • Litecoin – LTC
  • Bitcoin Cash – BCH
  • Cardano – ADA
  • Qtum – QTUM, and
  • Ethereum Classic – ETC

 

CAN YOU ‘SHORT’ CRYPTOCURRENCIES AT COINMAMA?

Due to the way in which Coinmama operates, the option to ‘short’ is not supported. Clients deposit the required transaction funds at the end of the transaction.

 

CUSTOMER SUPPORT

Coinmama can either be contacted by completing the online request form or by using the automated live chat which features an array set of topics that can be selected or by entering key words or questions, allowing the robot to provide the necessary assistance.

This is considered a more advanced option of a ‘self-help’ platform which operates predominantly on keywords identified if selections are not made from the list of available queries.

 

COINMAMA SUMMARY

COINMAMA AT A GLANCE

Crypto Trading Platform Name Coinmama
Headquartered Slovakia, Central Europe
Year Founded 2013
Regulating Authority FinCEN
Contact Number None provided
E-Mail Address Online request form
Website https://www.coinmama.com/
Maximum Leverage Leverage is not offered
Minimum Deposit None – payment is made at the end of the transaction
Deposit Options Bank Wire Transfer, Crypto Wallets, Credit/Debit Cards
Withdrawal Options Bank Wire Transfer, Crypto Wallets, Credit/Debit Cards
Platform Type Cryptocurrency exchange
Platform Languages English – no other languages indicated
OS Compatibility Web browsers
Customer Support Languages English – no other languages indicated
Customer Service Hours 24 hours, seven days per week

 

PROS AND CONS

PROS CONS
Offers a quick and easy way to buy or sell cryptocurrencies There are only eight cryptocurrencies supported
Regulated by FinCEN Cryptos cannot be traded
Cryptos are not kept in a centralized storage, clients have to open their own crypto-wallets Only three payment methods supported
User-friendly interface Recorded breach in 2019
Customer support is sophisticated Substantially high transaction costs
Reputable and reliable platform
Verification process can be completed in under 6 hours

 

WHAT ARE THE BENEFITS OF USING COINMAMA?

  • There is no centralized storage that contains client funds and thus it makes it harder for hackers to gain access to funds, although passwords and email addresses can still be accessed.
  • The platform used for buying or selling cryptocurrencies is user-friendly and transactions are speedily executed.
  • There is no standardized depositing of funds, clients pay for the transaction as soon as they are done with their purchase.
  • Coinmama is reputable and is one of the cryptocurrency exchange platforms that has been in operation for an exceedingly long time.
  • Coinmama is registered with FinCEN and therefore clients know that they can safely purchase or sell cryptocurrency using Coinmama’s services.
  • There are strict rules and regulations in place that Coinmama is following that further ensures the safety of funds and provides a safe e-commerce environment.
  • Verification is a strict process with varying levels.
  • There are limits on the purchase of cryptocurrencies, but they are quite high.

 

FAQ

Fees

What is Coinmama’s costs?

There is a 5.9% trading fee which is worked into every transaction. Should clients use Credit/Debit Cards to pay for the transaction, there is an additional fee of 5% added on.

What is Coinmama’s Maximum Trades/Orders:

There is a maximum purchase limit of $5,000 per day and $20,000 per month.

What is the minimum deposit amount on Coinmama?

There is no minimum deposit amount as transactions are settled at the end of the purchase.

What mediums can be used for deposits into a live account?

Bank Wire Transfer, Crypto-wallets, and Credit/Debit Cards.

What are the withdrawal fees on Coinmama?

There are no withdrawal fees.

Minimum Deposits

What is the minimum deposit for Coinmama?

There is no minimum deposit when opening a Coinmama account as transactions are paid for when the purchase is complete, similar to a ‘check-out’ system provided on most online shopping platforms.

How do I make a deposit in Coinmama?

  1. Once the registration or sign-up procedure is complete, the client can log into the website and platform.
  2. Once the client’s identity has been confirmed and the transaction is complete, the client can ‘check-out’ by selecting the payment method and the exact amount to be paid.
  3. The client can then follow the prompts to complete their purchase.

What deposit methods/options are available at Coinmama?

Bank Wire Transfer, Crypto-wallets, and Credit/Debit Cards.

What documents are required to deposit money into a Coinmama account?

Depending on the verification level that the client prefers, proof of identity and residential address along with a ‘selfie’ in which the client holds up a handwritten note with ‘Coinmama’ written on it along with the date must be submitted.

How long does it take to make a withdrawal?

When using payment methods such as Credit/Debit Cards and crypto wallets, withdrawals can be instant, but when using payment methods such as Bank Wire Transfer, funds may be subjected to waiting periods extending from one to several days.

 

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

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