The more people flock the crypto space, the more exchanges crop up to bridge the gap. In the rush, who to trust while buying your coins becomes hard to decipher in a crowded market place where everyone claims to be the best. Here we dig deep into Coinmama, a cryptocurrency exchange.
In our Coinmama review, we will seek to establish whether the exchange is reliable and how easy it is to conduct trades on the platform.
Introduction to Coinmama
Coinmama is among the reputable cryptocurrency exchanges which have been in operation since 2013. The exchange is owned by an Israeli firm, New Bit Ventures Limited. However, instead of having an Israeli registration, it has a Slovakian registration.
With a presence in more than 180 countries which include Kenya, Tanzania, Saudi Arabia, Slovakia, Solomon Islands, Poland, Hungary, Hong Kong, Spain, etc, the platform has over 1 million customers. Among the 180 countries, the United States of America accounts for 24 which include Texas, Virginia, Nevada, Michigan, Kentucky, Arizona, California, Kansas, among others.
Unlike what you would see on an ordinary cryptocurrency exchange, Coinmama is a bit different because, instead of providing a place where cryptocurrency traders can converge and exchange their coins, Coinmama only handles the selling of Bitcoin and other crypto coins directly to the buyer.
With Coinmama, you will not be buying from another cryptocurrency trader but directly from the firm. This makes it easy to buy your coins although the convenience and simplicity come at a cost.
Compared to other platforms, the transaction fees on the exchange are a bit higher. We shall discuss the fees later.
How does Coinmama work?
The platform offers one of the fastest ways to purchase Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies.
To be able to purchase coins on Coinmama, you need to go through five stages. First, you need to access Coinmama’s website and create an account after which you will be able to submit an order. This will be followed by your identity documents which the exchange needs as a way of avoiding cryptocurrencies being used to finance terrorism and also as a way to prevent being used to launder money. Once the documents have been verified, you will be required to send your payment after which coins will arrive in your wallet.
The platform groups the verification process in three levels. I.e Level 1, 2, and 3. Level 1 is the most basic one and requires that a user provide a government-issued identification card plus a selfie picture of the user holding the identification document.
Level 2 adds on the requirements of level one but adds a utility bill. The third level will involve filling out a form with some details.
The levels determine how much you are authorized to purchase on the platform. For level 1 users, once they hit a purchase of $10,000 they cannot purchase any more coins from Coinmama. Level 2 users have a limit of $50,000 after which they can either upgrade the level or forget about purchasing coins on the platform. Level 3 users have unlimited access to purchases on the platform.
Payment methods accepted by Coinmama
Coinmama supports a variety of payment methods. You can buy coins on the exchange using a credit card, a debit card, or using Western Union transfer. Note that the supported credit and debit cards are only those issued by the two major payment processor – Visa and MasterCard.
As mentioned earlier, the platform charges higher fees than those charged by other cryptocurrency platforms that provide crypto buying services.
For credit card purchases, Coinmama charges a 5 percent processing fee while the trading fees stand at 5.90 percent.
More than just processing fees, the exchange caps the number of coins you can purchase from the platform at $5K per day while the monthly limit stands at $20K. Coinmama calculates a day to have 24 hours while a month will have 30 days. The platform does not allow a purchase of less than 60 U.S dollars.
What does Coinmama not support?
Even with its awesomeness, the platform does not allow you to trade with other cryptocurrency traders and it does not support some of the major payment processors like PayPal.
In this era, mobile applications are proving necessary to make life easier. But Coinmama is yet to see this as they do not already have a mobile application. The platform does not also provide on-site wallets where users can store their coins. The purchased coins are sent directly to the users’ address which they must provide during purchase.
Although the fees on the exchange are approximately 11 percent higher than in other exchanges, Coinmama is the best platform to buy your first crypto coin.