Coinmama Review 2024 – Complete Exchange Overview (UPDATED)

Since its launch in 2013, Coinmama has been recognized as one of the most established cryptocurrency exchanges. This 2024 Coinmama review is structured to share key details about this popular cryptocurrency exchange.

We’ve researched and tested Coinmama, so you don’t have to. This Coinmama review is up-to-date, and it will provide you with reliable insights and simplify your understanding of why investors choose this platform.

By the end of this article, you will have a detailed understanding of the platform’s advantages and drawbacks, unique features, available payment options, user experience, security measures, fees, and customer service.

You will also be able to make a concrete decision on whether Coinmama meets your needs for buying and selling cryptocurrency.

Let’s dive right in!

Key Takeaways

• Customer-centric company on a mission to ensure security, simplicity, and timeliness when transacting.
• Limited crypto offering for crypto-focused investors. There have been claims that the platform prioritizes Bitcoin transactions over other types of cryptocurrencies.
• Reliable customer service – 24/7 – using all common communication channels, including phone calls.
• A safe and secure platform that allows you use over 7 different payment methods.

Pros and Cons of Using Coinmama

Listed below is a summary of the pros and cons of using Coinmama in 2024.

Who Founded Coinmama?

Founded in 2013 by Laurence Newman, Nimrod Gruber, and Ilan Schuster, Coinmama is a cryptocurrency exchange that allows users to easily buy and sell digital currencies.

The platform has its headquarters in Ramat Gan, Israel. New Bit Ventures Ltd previously owned it, which was later acquired by Wellfield Technologies in 2022. It operates in 200 countries and 48 U.S. states, with over three million customers.

Coinmama is privately held and fully regulated by the U.S. Financial Crimes Enforcement Network (FinCEN), which guarantees that it adheres to anti-money laundering regulations.

It provides quick verification and supports instant purchases through credit cards, bank transfers, and other payment methods.

While Coinmama’s fees vary based on different factors, its focus on accessibility, simplicity, and security sets it apart from other competitors.

As a non-custodial platform, it uses strong encryption to protect users and does not hold their funds, which reduces the risk of hacking.

Known for its transparency and excellent customer support, Coinmama is an ideal choice for those looking for a straightforward trading experience.

Is Coinmama Secured? – Reputation and Security

Coinmama provides strong security features and operates with a reliable team to ensure the safety of your investments.

In this section, we’ll discuss its licensing and security measures while addressing common complaints and highlighting the team’s expertise.

License

Coinmama is licensed and registered in several jurisdictions to guarantee compliance with local financial laws and create a secure trading environment.

Here’s a quick breakdown:

• United States: FinCEN (MSB)
• Canada: FINTRAC

The exchange adheres to strict anti-money laundering (AML) and Know Your Customer (KYC) standards.

It is also registered as a Money Services Business (MSB) with the U.S. Financial Crimes Enforcement Network (FinCEN), authorizing it to facilitate cryptocurrency transactions for American clients.

Furthermore, the platform is regulated by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada).

These regulatory measures guarantee that Coinmama provides a safe and compliant trading experience across multiple regions.

Security features

Coinmama emphasizes security through several key features, including two-factor authentication (2FA). They strongly encourage the use of Google Authenticator for 2FA, which is the most common standard.

This may be a drawback for users seeking an additional layer of account protection, as many other exchanges use 2FA to help prevent unauthorized access.

Instead, the platform focuses on other security measures:

• No asset storage: Coinmama doesn’t hold users’ cryptocurrencies or payment data on its servers, minimizing the risk of hacking.
• KYC process: KYC verification is implemented to guarantee enhanced security.
• Encryption: Transactions are encrypted to safeguard sensitive data.

In 2019, Coinmama experienced a data breach involving emails and hashed passwords of over 400,000 users who registered before August 5, 2017. However, it has since improved its security protocols.

The company reduces risks by not holding assets or sensitive data but users must manage their own wallet security.

Coinmama remains a secure choice for users looking to trade cryptocurrency with minimal risk.

Complaints received

Coinmama has received various user complaints about certain aspects of its services.

The following are the main concerns:

• High fees: Users often mention that Coinmama’s fees are higher compared to other exchanges, which can be a downside for frequent traders aiming to minimize expenses.
• Lack of advanced trading tools: It is often criticized for its simplicity, with advanced traders seeking more advanced trading tools that other platforms offer.
• Limited cryptocurrency selection: The platform offers less than 20 cryptocurrencies, which users find restrictive compared to most exchanges.
• No wallet service: The lack of an integrated wallet requires users to transfer their crypto to an external wallet, adding an extra step to the process.

These complaints suggest that users may face challenges with the platform’s limited functionality, especially advanced traders or those seeking more diverse crypto options.

Team

Coinmama takes a customer-centric approach to ensuring client satisfaction. They have a team that is dedicated to making cryptocurrency easy and accessible for everyone. They bring together experts in:

• Finance
• Technology
• Customer service

Their focus is on creating a simple and user-friendly platform for buying and selling digital currencies like Bitcoin and Ethereum.

Regardless of user experience, Coinmama’s team works tirelessly to ensure a simplified crypto experience is created.

The team’s key goals are:

• Security: Guaranteeing safe and secure transactions.
• Transparency: Providing clear and trustworthy services.
• Efficiency: Making the buying and selling process fast and smooth.

The platform’s team is always improving its features and security to offer a better user experience.

Coinmama’s team is dedicated to connecting traditional finance with the digital economy to help more people get into cryptocurrency.

This makes Coinmama a trusted choice for both beginners and experienced crypto users.

Coinmama Prohibited Countries

Coinmama supports users from over 150 countries, while services are prohibited in 10 specific countries and three U.S. jurisdictions due to regulatory issues.

Some notable countries where you can use Coinmama include:

• United States
• United Kingdom
• Canada
• Australia
• Most European Union countries

While these regions generally have access to Coinmama, certain features may be limited based on local laws.

Furthermore, Coinmama does not provide services in the following regions:

Countries:

• North Korea
• Iran
• Syria
• Cuba
• Crimea region
• Afghanistan
• Libya
• Yemen
• Central African Republic
• Democratic Republic of the Congo
• Belarus
• Iraq
• Myanmar
• Northern Cyprus
• Palestine
• Russia
• Sahrawi Arab Democratic Republic
• Somalia, South Ossetia
• South Sudan
• Sudan
• Luhansk and Donetsk (regions in Ukraine)

U.S. Regions:

• New York
• Hawaii
• Louisiana

These areas often face restrictions on cryptocurrency exchanges due to international sanctions or local regulations.

It’s important to note that restrictions can change based on evolving regulations.

Coinmama requires all users to complete KYC procedures, which may involve providing proof of residence and a valid means of identification.

This could impact access to the platform for those who are not permanent residents of a supported jurisdiction.

Before using Coinmama, it is advisable to review the platform’s most up-to-date terms of service or contact customer support for the latest information regarding availability in a specific location.

Users are responsible for guaranteeing that their use of the exchange complies with local laws and regulations related to cryptocurrency trading.

Top Exchange Features Available on Coinmama

Coinmama’s platform offers the following key features to simplify the crypto purchasing process:

• Instant Buy and Sell option
• Tiered verification system

These aspects provide fast transactions and secure access, catering to both new and experienced users.

Its trading options focus on instant buying and selling, unlike other exchanges that offer other features such as limit orders, margin trading, or staking.

This may appeal to beginners who want a simple and straightforward experience, though advanced users may seek other options for more flexible trading tools.

The Instant Buy feature guarantees that crypto is instantly delivered to users’ wallets upon payment confirmation, providing fast and seamless access to their assets.

Similarly, the Instant Sell option allows users to quickly convert their crypto into cash. This caters to those who value efficiency and simplicity in their transactions.

Furthermore, Coinmama uses a tiered verification system that determines how much cryptocurrency users can buy.

The levels are:

• Level 1: Lifetime spending limit of $15,000
• Level 2: Lifetime spending limit of $50,000
• Level 3: Lifetime spending limit of $1,000,000

There are three levels of verification:

• Level 1: Requires basic ID verification and offers limited purchasing power.
• Level 2: Adds proof of address and raises purchase limits.
• Level 3: Involves more comprehensive ID checks to unlock the highest limits.

This system means higher verification levels lead to increased purchasing limits.

While this tiered verification process enhances security, the multiple steps involved may be inconvenient for users seeking a faster onboarding experience.

You can easily buy and sell cryptocurrency on Coinmama, even as an absolute beginner.

However, advanced users might find its limited trading options and verification process less appealing compared to other exchanges with more features.

Is Coinmana Easy to Use?

When searching for the best exchange to use, it’s important to consider its user experience. User experience is basically how easy it is to use a platform.

In this section, we’ll cover the platform’s functionality, design, and registration process so you can get a clear understanding of how it works.

Platform functionality

Coinmama has a simple interface, which makes it easy for users to navigate through buying and selling options with minimal effort.

Here’s an overview of the platform’s functionality:

• Responsive interface: The exchange operates quickly and lets users complete transactions without noticeable delays.
• Real-time updates: Prices update instantly, helping users make informed trading decisions.
• Smooth transactions: The platform guarantees that transactions are processed efficiently and with minimal errors.
• No advanced trading tools: Coinmama focuses on simplicity, so advanced functions like API access or margin trading aren’t available.

In summary, Coinmama offers a responsive platform that ensures quick transaction processing and real-time price updates. However, during peak times, some users may notice brief slowdowns.

Design and appearance

Coinmama’s layout is clean, which helps users access essential features without any unnecessary clutter.

Let’s explore the details below!

• Homepage: Displays the current Bitcoin price, with clear options to buy or sell at the top.
• Navigation: Simple tabs guide users to view their account, transaction history, or customer support.
• Search functionality: Lacks a direct search bar, but key features are well-organized for easy access.
• Dark mode: Not available, limiting visual customization for users.
• Responsive design: The platform performs smoothly on both desktop and mobile devices.

In short, the exchange’s minimalistic design provides easy access to key features, though the absence of dark mode and a search bar may limit user customization and navigation.

Registration process

The registration process on Coinmama is designed to be quick and easy for new users.

Here’s a breakdown of the steps:

• Step 1: Sign-up
  Users start by entering their email address, creating a password, and selecting their country of residence. Then, a confirmation email is sent to verify the account.
• Step 2: Identity verification
  To comply with KYC and AML regulations, Coinmama requires users to verify their identity. This involves uploading a government-issued ID (passport, driver’s license, etc.) and taking a selfie for verification.
• Step 3: Complete profile
  After identity verification, users complete their profile by providing personal details such as name, address, and phone number.
• Step 4: Ready to trade
  Once verified, users can immediately access the platform to buy or sell cryptocurrencies.

While the KYC and AML procedures may seem extensive, they are crucial for maintaining the platform’s security and guaranteeing legal compliance with global financial laws.

These steps help protect users from fraudulent activity.

Depending on the accuracy of the information provided and the current volume of applications, the verification process can take anywhere from a few hours to a couple of days.

Overall, Coinmama’s registration process is easy to follow, and users can begin trading shortly after completing basic verification steps.

Fees

Coinmama charges various fees depending on the type of transaction and payment method.

Let’s explore the specifics below!

• Market rate: Coinmama’s rates are based on the TradeBlock XBX index with an additional 2%.
• Commission fees: The platform charges up to 3.90% for buying transactions and up to 0.90% for selling transactions, with fees varying depending on the user’s loyalty level.
• Credit/debit card fees: An extra 5% momentum fee is applied to credit or debit card payments.
• Bank transfers: For SEPA transfers, there are no additional fees. For SWIFT transfers, there is a minimum fee of £20 for orders under $1,000, while no fees are applied to orders over $1,000.

These fees make it important for users to consider their payment method and loyalty status when using Coinmama for buying and selling cryptocurrencies.

Payments

Payments on Coinmama come with various deposit and withdrawal methods, each with specific limitations to consider.

Let’s get into the details!

Deposit and withdrawal methods

Coinmama offers a few options for depositing and withdrawing funds, supporting both cryptocurrency and fiat transactions, to provide flexibility for users.

Deposits are processed based on the method selected:

• Credit/debit card (instant)
• Apple Pay and Google Pay
• Bank transfer (via SWIFT, 1-3 business days)
• Cryptocurrency deposits (near-instant)

For withdrawals, Coinmama follows a different process from traditional exchanges.

When users sell cryptocurrency, the proceeds are sent directly to a linked bank account. Processing times typically range from 1-2 business days.

Overall, Coinmama offers an efficient way to manage cryptocurrency transactions, which allows users to buy and sell without storing funds on the platform. This approach provides quick access to funds while maintaining control over assets.

Limitations

Coinmama offers clear deposit and withdrawal limits that vary depending on the user’s verification level and chosen payment method.

For credit or debit card transactions, the daily purchase limit is up to $15,000, while bank transfers allow a higher limit of $30,000 per day.

When selling cryptocurrency, verified users can sell up to $15,000 worth of crypto daily.

These limits provide flexibility for different transaction needs, with higher verification levels unlocking larger limits.

Customer Service

Coinmama provides several customer support options to assist users with any questions or issues they may encounter.

The following channels cater to different levels of urgency and user preferences:

• Email support: Response time varies but 24 hours is the stipulated time.
• Help Center: Comprehensive FAQ section available for immediate assistance.
• Live chat: Available during business hours for quick resolutions.
• Social media: Active support on platforms like Facebook and Twitter.

User feedback on Coinmama’s customer support is generally mixed, with positive and negative aspects highlighted.

Positive feedback:

• Quick and helpful responses from email support.
• Friendly and knowledgeable live chat agents.
• A detailed and easy-to-navigate Help Center.

Negative feedback:

• Live chat is not available 24/7.
• Slower response times during peak hours.
• Some users report generic answers from email support.

This exchange has shown dedication to listening to customers by introducing new communication strategies to eliminate wait time. They have also received a lot of accolades for taking out time to respond to reviews on Trustpilot which shows another level of dedication to their customers.

Coinmama’s customer support is reliable, though improvements in availability and response times could enhance the user experience further.

Educational Resources

Coinmama offers a variety of educational resources to help users better understand cryptocurrency and trading.

Let’s explore them below!

Blog

The Coinmama blog features a variety of topics, including the latest Bitcoin updates and news on other altcoins. It also offers insights into market trends and updates about the exchange’s services.

Academy

The Coinmama Academy is a resource for learning the basics of cryptocurrency and blockchain. It offers a range of articles and guides designed to help beginners understand digital currencies.

Key features include:

• Beginner-friendly guides: The academy provides clear explanations of key cryptocurrency concepts.
• Step-by-step tutorials: Users can follow simple instructions on how to buy, sell, and store digital currencies.
• Market insights: The academy updates market trends to help users stay informed about the latest developments.

With its clear and simple approach, the Coinmama Academy aims to make cryptocurrency accessible to everyone.

Coinmama Review in Summary

Coinmama is on a mission to create a customer-centric platform that is easy, simple, and fast. They are known to be a simple and user-friendly platform for buying and selling cryptocurrency, making it an excellent option for beginners.

Its fast verification process, ease of use, and focus on security are major advantages, as well as its multiple payment options.

However, the exchange’s higher fees, particularly for credit card transactions, may be a drawback for frequent traders.

Additionally, its limited cryptocurrency offerings and lack of advanced trading features may not satisfy more experienced users.

The absence of an integrated wallet adds an extra step in managing funds, and the educational resources provided are quite basic.

Despite its limitations, Coinmama’s focus on security, accessibility, and regulatory compliance makes it a reliable choice for newcomers or those who prioritize simplicity and safety over complex trading.

FAQ

1. 01.

   Is Coinmama reliable?

   

   Yes, Coinmama is a reliable cryptocurrency exchange known for its user-friendly platform and secure services. It has a good reputation for customer support and fast transaction times, although its fees can be higher than other exchanges. The platform also has strong security measures, such as two-factor authentication. However, it’s not a full-service wallet, so users need to transfer their coins to a secure wallet after purchase. In general, Coinmama is a trustworthy option for cryptocurrency transactions, especially for beginners looking for a simple platform.

2. 02.

   What are the fees on Coinmama?

   

   Coinmama’s fees include a commission fee ranging from 0.99% to 3.9%, depending on your loyalty level. If you use a credit or debit card, there’s an additional 4.99% fee. Only the commission fee applies to bank transfers. While Coinmama does not charge for cryptocurrency withdrawals, the cryptocurrency you use may require you to pay blockchain network fees. The total fees you pay will vary based on your payment method and loyalty tier.

3. 03.

   How does Coinmama compare to other exchanges?

   

   Coinmama stands out from other exchanges by offering a simple and user-friendly platform for buying cryptocurrency directly with a credit card or bank transfer. Unlike more complex exchanges, it focuses solely on buying and selling without additional features like advanced trading or staking. Coinmama has a global reach and offers quick transactions, though its fees can be higher than those of its competitors. It’s ideal for beginners who want a straightforward way to get crypto without dealing with complicated trading tools, but those looking for lower fees or advanced features might prefer other platforms.

4. 04.

   What payment methods does Coinmama accept?

   

   Coinmama accepts several payment methods to make cryptocurrency purchases easy. Users can pay with credit and debit cards, including Visa and Mastercard. They also accept Apple Pay for convenient mobile transactions. For those who prefer bank transfers, Coinmama supports SEPA for European customers and SWIFT for international users. These options provide flexibility for buyers, whether they want instant payments with cards or prefer bank transfers. However, Coinmama does not accept payments through PayPal or other online wallets. It’s important to note that the availability of payment methods might vary based on your location.

5. 05.

   Are there any limits on purchases with Coinmama?

   

   Yes, Coinmama has purchase limits based on your verification level and payment method. There are three verification levels. Level 1 allows up to $15,000 in purchases, Level 2 permits up to $50,000, and Level 3 allows up to $1 million. Higher levels require more thorough identity verification, such as submitting additional documents. Payment methods like bank transfers or credit cards may also affect these limits, so it’s important to check the specifics based on your account and chosen method.

6. 06.

   How long does a transaction take on Coinmama?

   

   A transaction on Coinmama typically takes a few minutes to complete, but the exact time can vary. If you’re using a credit or debit card, the process usually takes place immediately after your payment is verified. However, bank transfers may take longer, ranging from a few hours to up to two business days, depending on your bank. After the payment is confirmed, Coinmama sends the cryptocurrency to your wallet, which could take additional time depending on network congestion. Overall, the entire process is usually quick, but it can vary based on the payment method and blockchain conditions.