Coinmama Review [Our Take on the Exchange]

Last Updated April 29, 2018

In this Coinmama review, we will examine Coinbase’s main competitor on the Bitcoin exchange market with many ex-Coinbase users migrating to Coinmama due to better customer support and increased reliability.

Reviewing Coinmama’s inception

In 2013, Coinmama was registered in Slovakia as a cryptocurrency exchange forum. It is owned by New Bit Ventures Limited and has its headquarters in Israel. Its founders, Asaph Schulman and Nimrod Gruber, both veterans of the digital crypto marketplace created Coinmama with the goal of, “Providing a financial service that makes it fast, safe and fun to buy digital currency, anywhere in the world. We believe that the future of money is one where we, the people, are in control of our own economy. A future where there’s no place for middle-men, hidden fees, and fine print. To deliver on that promise, we have come to work every day since 2013 to create the simplest financial service out there – spoken in a language you can understand, and backed by customer service you can count on.”

Their desire to create a simple, customer-centric buying platform for Bitcoin and Ethereum has been met with mutual interest from crypto investors the world over. Coinmama prides itself on providing a stage to purchase Bitcoin and Ethereum to 217 countries all over the world. Within the United States, Coinmama is available to 24 states including: Arizona, California, Colorado, Florida, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Missouri, Montana, Nevada, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Wisconsin. They have publicly stated their plans to continue expanding to more states, so, if yours is missing from this list, check in periodically to see if they will soon be adding yours to the prodigious list.

Coinmama is a platform strictly meant for the purchase of Bitcoin or Ethereum. Upon completion of a sale, all crypto purchases are transferred directly from Coinmama’s holdings into users accounts, ensuring security that its competitors do not provide. It should be noted, however, that a user is not able to sell and trade coins through their platform. Bitcoin or Ethereum may be purchased with a credit card, debit card or through Western Union.

Why Crypto?

Some reading this may still be in the camp that does not have more than a passing knowledge of digital currency. Maybe it goes completely over your head; you find yourself hearing about it and ask, “What’s the big deal?” The especially, skeptical may think it some sort of scam or Ponzi scheme—rest assured it is neither of those things. You should not by any means sell everything you own and invest it all in cryptos. A wealth manager will be the first to say that a diversified portfolio is extremely important for long-term growth and portfolio protection. Diversifying your wealth in land, stocks, businesses, precious metals, and cash are all viable form of spreading your accumulated prosperity, and now, cryptocurrencies should be considered as a new type of investment to further diversify your wealth portfolio.

  • Identity and Fraud Prevention – Cryptocurrency is kept safe and secure within a digital wallet, unable to be counterfeited or its orders canceled or falsified. Identity theft is a much lesser concern with cryptos as a result of their “push” mechanism. In this, the sender sends or pushes, the specific information that might be required by a merchant or a buyer. Credit cards, on the other hand, utilize a “pulling” mechanism by the merchant pulling from your line of credit. When this occurs they have access to the entirety of the cred, regardless of transaction size, leaving your account potentially vulnerable to attacks.
  • Digital cash system that does not require trust – These types of blockchain payment systems facilitate peer-to-peer exchanges of assets. They remove the middleman and some of the inherent risk when you involve a third party as you would with a digital payment system such as a bank, Paypal, its subsidiary Venmo, or credit card company. This lack of intermediary allows contracts to happen at a much quicker pace by eliminating extra parties, regulations or waits by turning it into a form of cash exchange.
  • Low Fees – Relatively speaking, for many cryptocurrencies there are a no or low transaction fees, especially when compared to fees that are associated with more traditional means.

A Coinmama Review: Getting Started

Below we will review Coinmama’s ease of activation.

Registering your Coinmama account

In order to get started on Coinmama, a new user has two options to begin. This Coinmama review has found this platform to be unique in comparison to its competitors in that it allows users the prospect of purchasing up to 150 Euros/Dollars of cryptocurrency without requiring any form of identity verifications. These days, this is an option that very few of its competitors offer. However, if you would like to purchase more than that you will have to register an account with Coinmama. Registering an account requires that you provide a good deal of personal information in order to verify your identity.

Reviewing Coinmama’s KYC and AML compliance

As the crypto market continues to evolve and spread into the mainstream, a growing worry is how easy it digital crypto platforms make it for criminals enterprises to utilize cryptos as dirty money laundering platforms. In order to protect their business’ reputation and to prevent illicit activities from being possible much in part to their platform, more and more crypto platforms are integrating themselves with standard banking enterprises. This means that they too comply with the stricter banking regulations, including KYC (know your customer) and AML (anti-money laundering) guidelines.

KYC and AML were created to fight growing corruption, bribery, fraud and money laundering by increasing transparency between banks and their customers. Banks wanted to ensure that their customers were not using their services for ill-gotten gains. In order to accomplish this, there are four primary tenants to KYC and employed by Coinmama. This involves them, monitoring transactions, assessing risk management, completing customer identification procedures and requiring customer’s acceptance of these policies.

Traditional Bitcoin investors may lament this lack of decentralization, saying it is far removed from Bitcoin’s original purpose. You can not blame those purists. However, this is a trend that platforms across the digital exchange are following and Coinmama is not alone in its desire to prevent unscrupulous players from taking advantage of its services. By complying with these regulations, Coinmama secures and legitimizes your purchases, protecting you in the long run.

A Coinmama Review: What will be asked of you?

In order to purchase larger amounts of crypto, you will need to satisfy KYC and AML requirements. This means you will have to verify your identity with a government-issued identification card or certificate. This will have to authenticate your full name, gender, age, address and card number. In order to verify this information, Coinmama asks that you submit documents that are: “No larger than 4 MBs, completely visible front and back, high-quality images, and valid documents, with the expiration date easily seen.

Once this has been provided, verification processing sometimes lasting a few business hours, though if you register on a Friday, it may take until the following Monday. If you require a faster process, Coinmama’s customer service assistance will do its best to aid you in that.

The average user will be verified in a matter of minutes and will then be able to place orders on Bitcoin or Ethereum at once. One of the drawbacks of Coinmama is that it does not provide an online wallet for its users to safely store their coins. Because of this, you will first have to create a digital wallet, which Coinmama will first confirm is active and valid. These orders happen rapidly and will be completed in a matter of minutes. Do not worry though, as soon as the order is placed, the exchange rate at purchase time remains locked in. Your order will, therefore, ignore trends or fluctuations that occur after purchase, ensuring that you get exactly what you dealt with. If, for any reason, an order aborts, this Coinmama review has found that the system will automatically make the payment void within a 48 hour period and will return the money to your bank account.

Purchasing through Coinmama

Upon registering and verifying your identity, Coinmama does not require the registration of credit or debit card before users may purchase Bitcoin or Ethereum. Rather, users create a purchase order, selecting the quantity they wish to purchase, entering their digital wallet’s address and then filling out card details at check out. If your card address matches your customer account address, you will be given the green light to complete your order as long as it supersedes the minimum $60 purchase. Do not worry though, Coinmama does not store their customer’s credit or debit card information on their servers, thus protecting identity theft via hacks.

Once the purchase is made, the transaction will go through processing, which lasts 15 to 20 minutes on average. After this, the cryptos will be transferred to your digital wallet.

Purchase Limits

This Coinmama review finds that the platform offers relatively high buying limits in comparison to its competitor. There are three tiers to purchase limits, the higher tier you have, the more you are allowed to purchase. Because of this, there are more verification and identification requirements.

  • Tier 1 – Requires users to provide a valid government issued ID. Verified users are allowed to purchase $5,000 max a day with a max limit of $20,000 per month.
  • Tier 2 – Requires users to provide two valid government-issued IDs as well as either a utility bill or a photo of yourself holding your ID. At this level, users may purchase up to $50,000 of Cryptocurrency per month.
  • Tier 3 – Requires users to provide all the previous information as well as a short form that must be returned and certified by Coinmama. At this tier, users may purchase up to $1,000,000 in cryptocurrency per month.

Reviewing Coinmama’s fees

When compared to its competitors, a review of Coinmama’s transaction fees will reveal that its 5.5% fee for every transaction to be in the upper echelon. This fee will be charged in addition to a 5% fee on each debit or credit card transaction. One of the larger complaints regularly logged against Coinmama is this higher rate.

A review of Coinmama’s customer support

While the transaction rates may seem high, what you get in return is excellent customer support. Since Coinmama does not have to deal with the sheer volume of users as some of its competitors in conjunction with its extremely secure system means that almost any customer service request is answered within 24 hours. A select few users experienced delayed the order, had misunderstandings, or system related issues. If you do ever have issues with the platform, you can contact Coinmama’s Customer Care number by dialing: +1-800-261-6932, an alternative form of contact would be by email: [email protected] & [email protected]. Coinmama’s customer support operates from Sunday – Thursday, 11 pm – 7 am pacific time.

A perusal of the Coinmama forums on either Reddit or elsewhere reveals that Coinmama does not carry with it a ton of controversy. The one main complaint would be their relatively high transaction fees, but as mentioned above, you pay more for better safety. No platform is bug or issues free, but a Coinmama review finds that the service is attentive to customers and makes a concerted effort to provide a reliable service. They have built up a solid reputation as a reliable service that is intuitive and one of the easiest ways to begin purchasing Bitcoin or Ethereum. Signing up is quick, and once you have filled out your KYC and AML compliant information, you will be able to buy cryptos almost immediately. Remember that you are unable to sell or exchange coins through this service, it is intended solely for the purchase of coins and it is very good at doing that.

 

 

 

 

 

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