Coinmama is another old cryptocurrency exchange service that is popular in the crypto world. It has been around since 2013 and is a reliable brokerage service for both ethereum. The exchange sells or purchases Ethereum directly at premium.
Users can also buy bitcoin and litecoin using this service. It is available in almost every country around the world and all you need is a debit or credit card from Visa or Mastercard. Their customer support service is decent and better than Coinbase. Coinmama is known to have large credit card purchase limits as compared to other crypto exchanges.
Back in 2014, people loved the Coinmama exchange service because it allowed them to buy cryptocurrency using Western Union transfer. But the service has transformed over the years and now credit and debit cards have become the standard way of purchase.
Setting up Your Own Wallet
A wallet is a tool where you store your Ether after the purchase. It can be online or offline, although offline wallets are more secure due to obvious reasons.
Some cryptocurrency exchange services provide their own wallet. But on Coinmama, you need to get your own wallet to store your cryptocurrency in. After you enter your wallet address, you will be asked to click on a confirmation link in the email you get immediately after. This is to ensure that people don’t buy cryptocurrency on behalf of other users.
Their cryptocurrency fee is 5.9% (included in the price shown on their website) and you pay additional 5% on credit card purchase. These are the highest fees in the market, so carefully go through Coinmama’s pros and cons before you register with them. The rate you see for Ether or Bitcoin includes the service fees charged. And when you select a method of payment, additional fees on credit card purchase is added.
When transferring thousands of dollars over the internet, the first thing you want to be sure about is safety. Virtual currency like Ethereum can be stolen. In fact, as much as $37 million of Ethereum has been stolen from a startup called CoinDash. I didn’t reveal this news to paralyze you, but to alert you of the monsters that lurk in the dark side of the crypto world.
Before we get too dramatic, let us understand how safe is Coinmama. Coinmama isn’t a huge player in the cryptocoin trading world. But they are growing steady and haven’t yet hit by any security breaches.
While Coinbase gets 34 million visits a month and Poloniex gets 44 million visitors a month, Coinmama only gets 600,000 visits a month. Since the company is registered with FinCen in the U.S., so they don’t store any cryptocurrency on the behalf of their customers.
No in-house currency stores make their service less prone to attacks from hackers. But it still stores your credit card information, although the company claims that it is not stored on the exchange server. In simple words, you shouldn’t be worried about security breaches while using this service.
Privacy of Your Information
You don’t need to give them any ID if you are making purchases less than 150 USD. If you are making a purchase higher than that, you need to thoroughly verify your identity with them. There are three levels of identity verifications one can go through. The higher your verification level, the more cryptocurrency you can buy.
The daily buying limit on the service is 5,000 USD/EUR. Monthly purchase limit is 20,000 USD/EUR. If you purchase in USD or EUR, there is no exchange fees applied. But if you are purchasing in other currencies, you have to pay an exchange fee. It is good that Coinmama accepts orders in all currencies.
One of the benefits of buying from Coinmama is you get high purchase limits, especially if you use a credit card. The purchase limits depend on the level of verification you have done. There are three levels of verification as mentioned below.
There are three verification levels. The only reason you should provide more documentation to coinmama is if you want to purchase higher amount of crypto coins than what is permissible in your current verification level.
The first level of verification requires you to give the following documents:
- One valid government issued ID. Acceptable IDs are non-US international passport, national ID card and a driver’s license.
- A selfie of yourself holding the aforementioned ID and a note “coinmama” written on it with today’s date.
For verification in Level 2, you need to upload the ID required for Level 1 and the following documents:
- A secondary ID. Again, you can choose from any acceptable IDs mentioned earlier
- Utility bill: Any bill including electricity, cable, gas, water, property tax, bank statements or credit card statements
To do verification at Level 3, you need to fill a short form, which you can get by sending a mail to email@example.com. Send a mail at this address to get more info about level 3.
If you have any queries, you can send an email to their support department. It is recommended to read their list of Frequently Asked Questions as they contain answers to common problems faced by users.
They have a responsive customer support service and reply within 24 hours. The business hours are Sunday to Thursday 11pm to 7am Pacific Time. On Trustpilot, you can read how amazing their customer support is, though there are just 22 reviews of Coinmama on their website. As soon as you tell them your problem, a qualified engineer works with you and the focus is always on getting ethereum or bitcoin in your wallet as fast as possible.
There are many benefits of buying Ethereum or other cryptocurrency from Coinmama. It is available in almost all countries around the world, you can pay cash to Western Union to buy your crypto coins, get coins instantly in your account with debit/credit card and buy in large numbers too.
There are some drawbacks you should consider.
One of the major drawbacks of the service is that you cannot buy cryptocurrency using your phone or any mobile device. In a world where 52.2 percent of all internet traffic comes from mobile phones, this is a serious limitation.
Second, you cannot sell your cryptocurrency back neither to coinmama nor to other buyers. In case you don’t want to use your balance or have other reasons to sell, you will have to sign up with another exchange platform.
The platform only works for buyers. Third, they don’t accept SEPA or wire payment methods like other exchange services. Fourth, they only sell Bitcoin and Ether, although this isn’t a major drawback considering that most cryptogames deal in Ether.