Coinmama is a cryptocurrency marketplace that allows adopters to buy digital currencies like Bitcoin or Ethereum using a credit card. The company is owned by NBV International s.r.o, a subsidiary of New Bit Ventures Ltd, a FinCEN-registered company. Coinmama was launched in 2013 and is based in Bratislava, Slovakia, even though its parent company New Bit Ventures Ltd has its headquarters in Israel. The platform has a presence in 226 countries around the world including the U.S.
As a result, payments can be made using all local currencies. It is also important to point out that Coinmama does not offer its own wallet, so you will need to have your own wallet before you can buy a digital currency from the exchange. Also, you cannot execute bill payment or money transfer services on this platform. It is also not possible to sell cryptocurrencies through Coinmama; you can only buy. In the same vein, there is no option to link your bank account.
Many cryptocurrency exchanges do not accept fiat currency deposits. They only accept cryptocurrencies; usually Ether or Bitcoin. Coinmama, therefore, exists to enable traders who want to buy Ethereum or Bitcoin using fiat currencies to do so.
The Coinmama Platform
Coinmama does not offer a trading platform. Instead, what they offer is a simple interface where clients can choose a predetermined cryptocurrency amount and carry out other basic functions such as calculating prices. Users are also furnished with information about order history (pending, current, past, and refunded) orders. There are no chart or analysis tools.
Coinmama does not support digital currency trading. However, you can buy Bitcoin, which is the platform’ main focus. Another digital currency you can purchase from Coinmama is Ethereum. If what you are looking for is a platform that links you to possible buyers, then you will be better off with a different service.
Coinmama does not support trading services but it will cost you to use the platform for purchase purposes. The organization charges 5.5 percent transaction fee on each purchase made. If you are using a credit card to make purchases, you will be charged an additional 5 percent fee, which is assessed by the company’s credit card processor, Simplex.
The organization also cites that certain credit card issuers and banks classify Bitcoin purchases as a cash advance. As such, they charge users massive fees to speed up the transaction. Note that this fee is not charged by Coinmama but your financial institution or card issuer. So you may want to verify that your credit card does not charge any cash advance fees before you proceed to buy Bitcoin or Ether from Coinmama.
Now, assuming you are buying $2,000 worth of Bitcoin through Coinmama, here is a breakdown of how much it will cost you:
What we like about Coinmama is that they lock the cryptocurrency exchange rate upon purchase, meaning you will receive the exact amount of bitcoins ordered for, irrespective of the price fluctuation that takes place between the time the currency is ordered and the time it is received. The opposite is the case with some other marketplaces.This indicates that you will have to part with a minimum of $2,210 if you are looking to purchase $2,000 worth of Bitcoin via Coinmama. This amount might increase depending on whether your bank/credit card issuer charges a cash advance fee as well as the currency you are using to make payment.
Deposits and Withdrawals
Crypto enthusiasts who wish to purchase Bitcoin or Ethereum via Coinmama can do so through the following methods:
- Credit/debit cards: You can make payments on Coinmama using MasterCard or VISA cards. VISA/MasterCard Payments are supported by the company’s Simplex payment processor.
- Cash: You can buy cryptocurrency from Coinmama via Western Union transfer.
Note that you cannot link your bank account to the Coinmama exchange platform.
Funds security is a top priority for every crypto user. Thankfully, that is not much of an issue with Coinmama, as they are a registered money service business (MSB). NBV International Ltd s.r.o, owner of Coinmama, is a registered member of the US Financial Crimes Enforcement Network (FinCEN). Coinmama is also registered with the Slovakian financial authorities. Moreover, Coinmama is not a target for hackers owing to the fact that it does not hold any digital coin on behalf of its users. In addition, the exchange does not store credit and debit card information on its server.
Coinmama’s purchase limits are classified based on verification levels. This means that your purchase limit depends on the means of identification that you provide. Once your account has been verified, you can make daily purchases of $5,000, up to a maximum sum of $20,000 each month. A breakdown of the levels is given below:
- Level 1: to attain the level 1 status, you will need to provide personal information such as your name, date of birth, address, phone number, email, as well as a photocopy of your passport, driver’s license, or national ID for verification purposes. It can take the company up to one day to review your documents and verify you. A level 1 status allows a purchase limit of $10,000.
- Level 2: the level 2 status is designed for cryptocurrency buyers who want to obtain more than $10,000 worth of digital currency up to a maximum of $50,000. For a level 2 status, you will need to provide a copy each of your driver’s license and passport, or other relevant identifying documents. You may also be required to upload a picture of yourself holding any of the documents aloft.
- Level 3: the level 3 status is intended for individuals who wish to purchase unlimited amounts of Bitcoin or Ethereum. There are no purchase limits on this level. However, the company does not provide any information about the requirements for obtaining this status. So you will need to call their help desk directly for further instructions if you want to make purchases without total limits.
As mentioned earlier, Coinmama supports up to 226 countries, which makes it about the largest cryptocurrency exchange platform there is today in terms of coverage. The only nations Coinmama does not cover are those that have been sanctioned. Besides the non-sanctioned countries, Coinmama is operational in the following states across the US: California, Illinois, Kansas, Arizona, Colorado, Michigan, Maryland, Kentucky, Florida, Indiana, Louisiana, Missouri, Massachusetts, Nevada, Montana, Tennessee, New Mexico, Pennsylvania, Wisconsin, North Carolina, New Jersey, Virginia, Texas, and South Carolina.
Coinmama provides support services for its clients via email only. In addition, the company’s website features a frequently asked questions (FAQs) page that is quite extensive and should address most of the questions you have in mind. Customer support services are available from Sunday to Thursday, 11 PM – 7 AM (Pacific Time).
Coinmama’s regulatory status and entire mode of operation make it look like a legitimate exchange that shouldn’t pose any problems that can’t be taken care of. The site offers live pricing in Euros and the US Dollars and also allows you to purchase fractions of a cryptocurrency. We also like the fact that you can easily review all of your orders and buy directly from the organization without involving a middleman. Also, the site is offered in several languages, which makes it easier for clients from different parts of the world to buy Bitcoin or Ether without worrying about language barriers.
In spite of its numerous benefits, however, there are certain things that still prevent Coinmama from being one of the very best exchange platforms in the world. One of such is the inability of users to sell Bitcoin or Ethereum through the site. Another drawback is that customers cannot link their bank account to facilitate new purchases. The lack of support for mobile devices also poses a serious challenge, as it effectively means that users cannot buy cryptocurrency on the go, which limits their ability to take advantage of profit opportunities. Mobile apps allow crypto users to monitor the market at all times, even when they are on the move, and buy cryptocurrency when prices are low. Their ability to buy at low prices are limited without a mobile app.
The payment options provided by Coinmama are quite convenient. However, the large transaction fee charged often keep crypto adopters from using the company’s impressive services, regardless of how much they want to.