Coinmama exchange review
Cryptocurrencies:
Fees:
Security system:
Deposit methods:
Cryptocurrencies
Coinmama offers only 16 cryptos, but does include some of the biggest ones on the market such as Bitcoin, Ethereum and Ripple.
| Bitcoin (BTC) | Available |
| Bitcoin Cash (BCH) | Available |
| Ethereum (ETH) | Available |
| Ripple (XRP) | Available |
| Solana (SOL) | Unavailable |
| Dogecoin (DOGE) | Available |
| Polkadot (DOT) | Unavailable |
| Polygon (MATIC) | Unavailable |
| Cardano (ADA) | Unavailable |
| Litecoin (LTC) | Available |
| Tether (USDT) | Available |
In contrast, Kraken lists over 210 cryptos on its platform, while Binance offers more than 350. However, compared to its competitors, Coinmama offers transaction fee discounts of up to 25%.
Payment methods
You can deposit and withdraw in CAD. Coinmama doesn’t explicitly outline limits for all payment methods but does state on its site that they are determined by KYC verification.
| Payment method | Limits |
|---|---|
| VISA daily limit (buying in FIAT) | $5,000 requires KYC verification, ID check and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. $10,000 requires KYC verification, a second government-issued ID, a utility bill or bank/credit card statement from within six months and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. $20,000 requires KYC verification, a second government-issued ID, a utility bill or bank/credit card statement from within six months, a questionnaire and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. |
| MasterCard daily limit (buying in FIAT) | $5,000 requires KYC verification, ID check and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. $10,000 requires KYC verification, a second government-issued ID, a utility bill or bank/credit card statement from within six months and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. $20,000 requires KYC verification, a second government-issued ID, a utility bill or bank/credit card statement from within six months, a questionnaire and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. |
| VISA monthly limit (buying in FIAT) | $15,000 requires KYC verification, ID check and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. $30,000 requires KYC verification, a second government-issued ID, a utility bill or bank/credit card statement from within six months and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. $40,000 requires KYC verification, a second government-issued ID, a utility bill or bank/credit card statement from within six months, a questionnaire and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. |
| MasterCard monthly limit (buying in FIAT) | $15,000 requires KYC verification, ID check and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. $30,000 requires KYC verification, a second government-issued ID, a utility bill or bank/credit card statement from within six months and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. $40,000 requires KYC verification, a second government-issued ID, a utility bill or bank/credit card statement from within six months, a questionnaire and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. |
| Wire transfer daily limit (buying in FIAT) | $15,000 requires KYC verification, ID check and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. $35,000 requires KYC verification, a second government-issued ID, a utility bill or bank/credit card statement from within six months and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. $50,000 requires KYC verification, a second government-issued ID, a utility bill or bank/credit card statement from within six months, a questionnaire and a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date. |
Kraken requires KYC checks to buy, sell and trade cryptos but your country of residence must match your ID documents. The company asks you for a selfie, proof of identity, which can be a drivers licence, government-issued ID or passport, as well as proof of address, which can be a utility bill, correspondence from a government department or bank account statement.
Similarly, Binance requires KYC verification to buy, sell and trade cryptos but your country of residence must match your ID documents. Instead of a selfie, you need to complete face verification and this can be done on your desktop computer or via a QR code on the Binance mobile app. The company asks you for proof of identity, which can be a drivers licence, government-issued ID or passport, as well as proof of address, which can be a utility bill, correspondence from a government department or bank account statement.
CashtoCode eVoucher
You can’t fund your account with a CashtoCode eVoucher as this isn’t offered at Coinmama.
Trading fees
While there are no deposit or withdrawal fees, the platform charges high transaction fees and you need to pay an extortionately high express fee of 4.99% when buying crypto using VISA, MasterCard, Apple Pay or Google Pay.
| Loyalty tier | Transaction fee | Transaction fee discount |
|---|---|---|
| Crypto Curious | 3.9% | No discount |
| Crypto Enthusiast | 3.41% | 12.5% |
| Crypto Believer | 2.93% | 25% |
Staking
Staking isn’t available at Coinmama.
Is Coinmama exchange safe?
As an Over-the-Counter (OTC) exchange, Coinmama has been in operation since 2013 and amassed over three million users. The company has no industry-standard security measures in place that offer safety for users such as holding customers’ assets 1:1 in custody or running a bug bounty program.
In addition, Coinmama faced controversy when it underwent a large-scale hack in February 2019. 450,000 users had their data breached when hackers stole email addresses and hashed passwords and then posted them on the dark web registry. However, a high percentage of users (71%) rate Coinmama with five stars on Trustpilot, which is a high indicator of safety.
| Trustpilot | 4 star |
The most common issues raised are related to the account hacks and deposit delays. However, people praise them for a great registration process, with one user even pointing out how when experiencing a deposit delay, Coinmama issued him with a coupon for 25% off future purchases which is uncommon for crypto exchanges.
Security
Coinmama has next to no security measures in place apart from two-factor authentication via SMS and holding nearly all customer assets in cold storage. The latter security measure is in order to provide protection against hacking since customer information such as bank account details or credit card numbers aren’t stored on the platform. However, the company itself, which operates in the UK, remains unregulated by the Financial Conduct Authority (FCA).
| Safe coins storage | 98% of deposits are held in cold storage. |
| Two-factor authentication | Two-factor authentication via SMS verification is required at Coinmama. |
| Information security | Coinmama doesn’t store or record any credit card or bank account information and all data is encrypted. |
| Platform security | Undisclosed |
| Network security | Undisclosed |
In comparison, Kraken’s comprehensive security measures have earnt it an AAA rating by CER as the most secure crypto exchange in the world. The company has a number of legal, compliance and security measures in place including maintenance of currency reserves with cryptographically verifiable proof-of-reserve audits. What’s more, a vast bulk of new deposits are transferred directly to offline wallets so only coins required to maintain Kraken’s liquidity are kept in online wallets.
Similarly, Binance stores 10% of all trading funds in a secure asset fund and advanced end-to-end data encryption ensures that your transaction information is secured. You can activate account access controls that limit withdrawals to only certain IP addresses or wallets and the company also algorithmically tracks all accounts and can implement 24-to-48 freezes as part of security measures.
How to start trading at Coinmama exchange?
Registration
You need to create an account in order to register with Coinmama and this can be done by:
- Visiting the homepage and inputting your email address so you can create a password and start the process.
- You then need to verify your email address.
- After verifying your email address, you have to submit personal details such as your full name, date of birth, residential address and gender.
- You then need to enter your phone number to receive an SMS verification text message.
- After verifying your phone number, you have to complete KYC verification.
- Upon successful registration and passing verification, access to all functions of the site including higher limits are available to you.
KYC
After filling in your account details, you need to go through multi-step KYC verification. This process is required for anyone who wants to buy or sell cryptos, regardless of the amount you wish to buy. Passing KYC checks also unlocks functionalities such as transaction fee discounts.
You must provide a clear and visible picture of the front and back side of your documents such as proof of address and passport. In addition, you need to complete a questionnaire and submit a selfie while holding a handwritten note that states ‘Coinmama’ as well as today’s date.
Customer support
Customer service options are limited at Coinmama, with only an online form to contact the company.
| Live chat | No live chat available. |
| Phone support | No customer phone line available. |
| No customer service email available. | |
| FAQs | Available |
Coinmama uses a ticketing system where users need to fill in an online form with a subject, description and optional attachment in order to contact the company. For users who are dealing with emergency account issues, there’s no way to speak with customer service on the phone. However, this is compensated for by the detailed FAQs available on the online Help Centre page.
Conclusion
Coinmama is recommended to users who are looking for a modern, user-friendly interface. However, there are high transaction fees, making the service less accessible for active traders, next to no security measures in place to safeguard customers, a low number of cryptos available, no staking program, live chat function or mobile app and the platform isn’t regulated by the FCA.
But if you don’t mind this, Coinmama can still be a great option if you’re looking for a way to save money on fees, which is a major differentiating factor and unique selling point (USP) for the platform. Coinmama could improve its service by introducing comprehensive platform and network security measures, launching a mobile app and live chat function or increasing the amount of cryptos available to trade.
Alternatives of Coinmama
- AAA security rating by CER
- Educational resources for traders through online Learn Centre
- 24/7 customer phone support
- Modern interface
- Wide range of cryptos available at over 210
- High trading fees
- Limited payment method options
- Low number of cryptos available to stake
- Low trading fees
- Modern interface
- Wide selection of cryptos available at over 350
- Ability to stake 27 different cryptos
- Variety of payment methods available
- Regulatory issues and lawsuits
- Security concerns related to hacks
- Coinbase Advanced Trade service with a plethora of features
- FDIC-insured balance protection of up to $250,000
- Low minimum deposit required to begin trading
- Coinbase Learn site with educational content for traders
- Top-rated mobile app
- High transaction fees
- Low number of cryptos available for staking
- No customer service live chat function
Kraken has ranked as the safest platform in the world with an AAA rating by cybersecurity from CER and has several licences with global regulators, as well as 24/7 customer phone support and over 210 cryptos available to trade. The company charges low fees of 1.5% to buy or sell crypto, 0.9% for stablecoins and you can pay even less (0.16% maker fee and 0.26% taker fee) if you opt for the Kraken Pro service which is marketed more towards high-volume traders.
Binance is licensed with numerous global regulators and offers a mobile app, over 350 cryptos to trade and a 24/7 live chat function available in 17 languages. In addition, Binance charges a low fee of 0.10% for trading on the platform, 0.50% fee for instant buy/sell and you pay zero maker and taker fees for all 13 Bitcoin spot trading pairs.
Similarly, Coinbase is licensed with several global regulators and charges you relatively low transaction fees through a tiered maker/taker pricing structure, with a flat 1% fee to convert and withdraw your crypto to cash. The company provides a mobile app, over 200 listed cryptos and a 24/7 live chat function that’s available in two languages.
FAQs
Yes, because Coinmama has been in operation since 2013 and they have developed a good standing with community members due to positive user experiences.
You need to spend at least $50,000 over a rolling 90-day period and your account must be active for over 30 days.
Although the company offers services across 188 countries, it isn’t regulated by any national financial authority. However, Coinmama is a subsidiary of New Bit Ventures which is registered as a Money Service Business with FinCEN.
Yes, fee discounts are available based on your Crypto Curious, Crypto Enthusiast or Crypto Believer tier level.
There are no deposit or withdrawal fees, but you need to pay transaction fees based on a tiered structure, as well as an express fee when buying crypto using certain payment methods.
Specification: Coinmama exchange review
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