Choosing a secure and reliable cryptocurrency exchange involves assessing a range of different factors, from ease of use to the number of cryptocurrencies supported. It’s important to know what you’re getting into before signing up with an exchange, as there can be a large number of pitfalls that can trap unaware traders when using a crypto exchange.
Coinmama is one of the oldest cryptocurrency exchanges on the market, and was one of the first platforms to make crypto widely available. Before credit card crypto purchasing became popular, Coinmama gathered a significant amount of support by offering Western Union as a payment method.
In this article, we’ll take a look a Coinmama, assess the ease of use that the platform delivers, outline the Coinmama features, examine the security of the platform, and finally provide some guidance on how to get started with buying cryptocurrencies on Coinmama.
Following is a short overview of the various sections of this guide:
- Coinmama Background: Coinmama is dedicated exclusively to Bitcoin trade, and is focused on providing extremely straightforward Bitcoin trading services. The platform is available in over 226 countries, and boasts more than 200,000 users around the world.
- Online Wallet: Coinmama doesn’t actually offer a wallet, meaning you’ll need to sort one out elsewhere.
- Ease of Use: As the Coinmama platform is dedicated exclusively to Bitcoin, it’s extremely simple and easy to use. As soon as you’ve got an active credit card and a wallet solution, it’s possible to start buying Bitcoin on Coinmama straight away.
- Security: Like most exchanges, Coinmama protects the privacy and security of their users with SSL technology. All personal information and transaction data is stored on password-secured databases to keep it safe from hacking attacks.
- Limits and Fees: Coinmama is simple, but it also has higher fees than some other exchanges.
The History Of Coinmama
Coinmama launched at the beginning of 2014, at time at which it was near-impossible to purchase Bitcoin with a credit card. To counter this, Coinmama offered users the ability to purchase Bitcoin with Western Union, which made it highly popular.
Coinmama is owned by Newbit Ltd, and is based in Ra’nana, Israel. Many users mistakenly believe that it is based in Bratislava, Slovak Republic, but this is actually the headquarters of NBV International s.r.o, which is the parent company that owns Coinmama. This company, in turn, is owned by New But Ventures Ltd.
Coinmama Online Wallet
Coinmama does not offer wallet services at this point in time.
Ease Of Use
The Coinmama platform is exclusively focused on Bitcoin trade, which makes it exceptionally easy to navigate and use. After registration, users simply select a payment method and place an order.
In addition to offering site-level SSL and storing user data on an encrypted database, Coinmama also offers a suite of different verification levels that can be customized according to user preference. To date, Coinmama has not been the target of a successful hacking attack.
Fees And Limits
Coinmama keeps their fee structure simple, although it’s not highly competitive. The platform offers a fixed 6.75% fee on all purchases. At this point in time, Coinmama doesn’t charge deposit or withdrawal fees.
Card transactions on the Coinmama platform are handled by Simplex, which charges a further 5%, making the cost of purchasing Bitcoin on Coinmama with a credit card 11.75%, an extremely high fee.
Coinmama also requires information such as your date of birth, taxpayer or government identification number, a copy of your government-issued identification, or other similar documents in order to provide fully-authenticated levels of service, and also obtains information about users from third parties such as credit bureaus and identity verification services.
Coinmama collects information on the behaviour of their users, such as their transactions, website activities, and users computers, mobile devices, or other access devices. Coinmama deliver all of this information of financial institutions, marketing agencies, law enforcement, government information requests, or companies or other entities that purchase Coinmama assets.
It’s safe to say that if you’re concerned about user privacy, you should avoid using Coinmama. If you’re simply in need of fast and easy BTC, however, and don’t care about privacy, Coinmama is okay.
Coinmama offers a comprehensive knowledge base via their website, as well as detailed FAQs. Customer service is somewhat lacking, however, as only email support is provided, which is only in operation from 6AM-2PM GMT from Sunday to Thursday.