Coinmama is one of the oldest Bitcoin brokers on the market, known for allowing its users to buy Bitcoin through Western Union back in the day, before credit cards took over by storm. It's one of the most widespread platforms of its kind, covering plenty of countries on all continents.
If you're looking for a service dedicated exclusively to selling Bitcoin, our in-depth Coinmama review will definitely uncover a Bitcoin broker worthy of the name.
About The Company
Coinmama was founded in April 2013 and has experienced quite the metamorphosis since. Their portfolio is as straightforward as it gets, just Bitcoin sales. The details of the agreement, however, depend on the user’s location. We hit a bit of a snag there, to be honest, as Coinmama offers inconsistent information. The official website states that they currently cover 226 countries while their LinkedIn profile lowers that number to 182. We’re more inclined to believe the site actually since the last page update was performed on July 10th.
An Israeli startup, the company is located in Ra’nana. There is definitely some space for confusion here since a lot of customers (and reviewers) think that Coinmama’s headquarter is in Bratislava, Slovak Republic. That is actually the seat of their father company, NBV International s.r.o, which, in turn, is the daughter enterprise of New But Ventures Ltd.
Coinmama currently boasts over 200,000 customers all around the world. Note that they used to sell Ether as well until 2016, when they discontinued this service. They are working on introducing new cryptocurrencies.
How Coinmama Works
For anyone interested in buying Bitcoin at good rates, Coinmama offers a simple purchasing process. You need to register and choose your payment method before placing an order.
The prices are expressed in USD and EUR, but Coinmama accepts payments in your local currency as well . If you go this route, however, you should also be aware of the current exchange rates for your local fiat.
Coinmama is not a wallet service, so you’ll have to get one (or more) on your own. Coinmama allows you to start buying Bitcoin as soon as your personal and card information get verified and your digital wallet is linked to your personal account.
Coinmama has a great referral program that can help you earn a few extra bucks. You can sign up for its affiliate program and earn 15%
commission for every trade of every person you’ve referred. You will receive your commission payments in Bitcoin whatever type of purchase the client you referred opts for. There aren’t any limitations regarding the number of people you can refer.
Buying & Selling Limits
Just like the majority of digital currency platforms, Coinmama provides different limitations for users of different backgrounds and locations. In order to gain the right to purchase bigger amounts of crypto money, you need to provide more personal information and keep your account up to date.
The minimum amount you can buy and the daily/monthly maximum amount you can spend are the same for all customers. The buying minimum is
0.1 BTC. The daily purchasing limit for credit card users is 5.000 USD/EUR. On a monthly basis, you can spend up to 20.000 USD/EUR paying with your credit card. Note that Coinmama doesn’t sell Bitcoins yet. This service will be coming soon, according to their official FAQ.
Since Coinmama primarily works as a cryptocurrency buying platform and sells its own Bitcoin at the moment, you won’t have to deal with maker-taker, deposit or withdrawal fees, except for those your bank charges regularly.
Instead of numerous variable fees, Coinmama charges 6.75% flat rate fee on all your purchases. All bank card transactions are operated by Coinmama’s processor Simplex, which charges an additional 5% (minimum 10$) when you buy Bitcoin with your credit or debit card. This fee is added to your account after you opt for the payment method.
Safety & Security
Coinmama protects your personal information and bank card data via SSL technology. Since it receives your sensitive information, Coinmama uses strong encryption to mask and store it on its secure servers. All your personal info and transaction data are kept in password-secured databases, safe from hackers and snoopers.
Coinmama additionally protects your account and your purchases with numerous verification
In order to enable you to buy cryptocurrencies, Coinmama uses 4 different levels of verification. The amount of money you’re allowed to spend depends on the level of verification you’ve completed. For Level 0 verification, you need to provide your name, phone number, address, ZIP code, city, and state. Level 0 enables you to spend up to 150 USD on Bitcoin.
Level 1 is for purchases of up to 10.000 USD and you need to upload clear photos of both sides of your ID or driver’s license. Customers who aren’t US residents can also use their passports.
Level 2 allows you to spend up to 50.000 USD. In addition to uploading a government-issued ID, you need to upload photos of another document. Once again, you can choose between your ID, driver’s license, and international passport.
Level 3 is the highest level of verification and it’s for high volume customers willing to spend up to 1.000.000 USD on cryptocurrencies. To complete this verification level, you need a face-to-face recognition approved by a notary or lawyer.
If you happen to have any additional questions about Coinmama, you can check out its rich knowledge base and browse through it effortlessly thanks to the Help search box you can find in the bottom right corner of every web page. The FAQ section is a bit outdated, so it’s better to stick with the knowledge base or submit a ticket. You can also email customer support anytime you want, but keep in mind that it can take some time to get a response since their working hours are 6AM-2PM GMT from Sunday to Thursday.
- Easy-to-use interface
- Supported in 226 world countries
- Works with credit/debit cards
- Locked crypto rate
- Excellent referral program
- Rich knowledge base
- You can only buy BTC
- You cannot sell cryptocurrencies
- High fees
- Website isn’t updated regularly