Coinmama is a basic, easy-to-use cryptocurrency exchange where you can buy a small selection of cryptocurrencies. It's notable for allowing purchases with a credit card, but there are also other payment options available, including bank account transfers and payment apps. Unfortunately, fees can be very expensive. Read our full Coinmama review to see if it's right for you.
Ratings Methodology
Bottom Line
Although it's a user-friendly place to buy crypto, Coinmama is too costly and lacks too many features for long-term use.
Fees:
Market rate + 2% and up to 3.9% on purchases and up to 0.9% on sales
Account Minimum:
$30 purchase minimum
Full Coinmama review
This cryptocurrency exchange is a good fit for: People who want a convenient place to occasionally make small crypto purchases.
Pros
- Easy way to buy crypto
- Multiple payment options
- Fast verification
Cons
- High fees
- No wallet
- Limited features
- Mediocre educational content
- Small cryptocurrency selection
Top perks
Easy way to buy crypto
The best thing about Coinmama is how beginner-friendly it is. To buy crypto, simply plug in the amount you want to spend, and then provide your payment method and crypto wallet address. It also allows you to sell Bitcoin (BTC).
Multiple payment options
Another convenient part of Coinmama is that it accepts quite a few different payment methods. Available methods depend on the user's location. For users in non-restricted areas of the United States, accepted payment methods are:
- Credit/debit card
- Apple Pay
- Google Pay
- ACH transfer
Coinmama isn't able to serve the entire United States yet. In some states, it offers service by a third-party partner, and in two states, Hawaii and New York, it's not available at all.
Fast verification
Like any licensed crypto exchange, Coinmama requires that clients go through identity verification. It's a quick process. First, you fill out a form with some basic information. After that, you need to write "Coinmama" and the day's date on a piece of paper, and then snap a selfie with that paper and your ID to upload.
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What could be improved
High fees
The biggest flaw with Coinmama is how expensive it is. It charges 2.3% more than the market rate and has commissions of up to 3.9% on purchases and 0.9% on sales. There's also a 4.99% fee for payments made by credit card, debit card, Apple Pay, or Google Pay.
These fees far exceed what quality exchanges charge. If you're planning to invest in cryptocurrency, Coinmama costs too much to be a good option.
COMPARE OPTIONS: Check out The Ascent's Best Cryptocurrency Apps and Exchanges.
No wallet
Coinmama doesn't provide any type of crypto storage. When you place a buy order, you need to provide a wallet address to receive the cryptocurrency. Since cryptocurrency transactions are irreversible, it's very important to provide the correct address for your order.
This isn't necessarily a huge drawback. One of the most common pieces of advice for safely storing cryptocurrency is to keep it in your own wallet, not on an exchange.
It's one of the few inconvenient parts of using Coinmama, though. Other exchanges at least give you the option of crypto storage, allowing you to jump right in and make a purchase. With Coinmama, you'll need to set up a wallet first.
RELATED: Best Crypto Wallets
Limited features
The only things you can do on Coinmama are buy certain types of cryptocurrency and sell one of them (Bitcoin). Compared to other exchanges, Coinmama is light on features.
For example, it doesn't offer crypto-to-crypto trades, so you couldn't swap one cryptocurrency for another. It also doesn't have any way to earn interest on your cryptocurrency. Several exchanges offer either crypto lending or crypto staking programs, two popular ways to grow your holdings.
Interested in crypto staking? Read our guide to the Best Crypto Staking Platforms.
Mediocre educational content
Considering that Coinmama has such a beginner-friendly design, it'd be nice to see it improve its educational content. The exchange's blog has some articles, but many of the crypto education sections haven't had new pieces published in years.
Alternatives to consider
If you want low fees: Binance.US is great for keeping your crypto costs to a minimum. Its trading fees are low and get lower based on your 30-day trading volume or if you pay fees in its BNB (BNB) cryptocurrency.
If you want a secure crypto storage option: Coinbase has excellent security and keeps over 98% of its clients' crypto offline in cold storage. Those who want even more protection can use the exchange's vault service, which is available to clients free of charge.
| Offer | Binance.US | Coinbase |
|---|---|---|
| Rating | Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | |
| Commissions | 0.00%-0.45% maker/taker fee | Variable fees (Coinbase), 0%-0.60% (Coinbase Advanced Trade) |
| Next Steps | Read Review | Open Account for Coinbase Read Full Review |
How Coinmama works
Coinmama is a straightforward exchange where you can buy several cryptocurrencies and sell Bitcoin. Accepted payment methods include credit and debit cards, Apple Pay, Google Pay, and ACH transfers.
To use Coinmama, you need to register for an account and verify your identity. There are multiple account levels you can progress through, and your level determines your buy and sell limits. Here are the levels and their respective limits:
- Level 1: $15,000
- Level 2: $50,000
- Level 3: $1,000,000
- Level 4: Over $1,000,000
Those are lifetime account limits, so if you reach the limit for a level, you need to apply for the next one. After the first level, each subsequent level has a spending prerequisite before you can apply.
Coinmama doesn't store your cryptocurrency for you. During a purchase, you'll need to enter the crypto wallet address where you want to receive your order.
Fees overview
Coinmama charges a spread, a commission, and an additional transaction fee for certain payment methods. The spread is based on a service called TradeBlock XBX that averages the rates of known providers to track a market rate. Coinmama's market rate is the XBX plus 2.3%.
The table below includes the fees for U.S. investors on Coinmama.
| Fee type | Amount |
|---|---|
| Spread | XBX rate + 2.3% |
| Commission fee on purchases | Up to 3.9% |
| Commission fee on sales | Up to 0.9% |
| Credit/debit card transaction | 4.99% |
| Apple Pay transaction | 4.99% |
| Google Pay transaction | 4.99% |
| ACH | 0% |
| Fedwire | 0% |
| SWIFT | 0% |
Source: Coinmama
Coinmama offers discounts on commissions through its loyalty program. There are three loyalty levels. The first is the default level, and the next two have spending requirements. In addition to commission discounts, they also get you faster support.
| Loyalty Level | Commission Discount | Spending Requirement |
|---|---|---|
| Crypto Curious | N/A | N/A |
| Crypto Enthusiast | 12.5% | $5,000 per 90-day period |
| Crypto Believer | 25% | $18,000 per 90-day period or $50,000 over account lifetime; must have been purchasing with Coinmama for at least 30 days |
Source: Coinmama.
Cryptocurrency selection
Coinmama lets you buy over a dozen cryptocurrencies, which is much less than quite a few other exchanges. Its roster includes market leaders Bitcoin and Ethereum (ETH), along with a mix of some other big coins and a few mid-size ones.
If you want to invest in a variety of cryptocurrencies, then you'll probably need to look elsewhere. There are a lot of big cryptos you can't get on Coinmama, including:
- Cardano (ADA)
- Solana (SOL)
- USD Coin (USDC)
- Polkadot (DOT)
- Avalanche (AVAX)
Is your cryptocurrency safe with Coinmama?
Coinmama is different from most exchanges in that it doesn't store cryptocurrency for its users. It sends cryptocurrency to the wallet address provided during the purchase process. Since orders go to a user's own wallet, keeping that crypto safe is ultimately the responsibility of the user.
For buying crypto, Coinmama is a secure option. It starts with an identity verification process, which helps protect against fraudulent accounts. It offers two-factor authentication (2FA) to prevent unauthorized account access. Coinmama also doesn't store credit or debit card information in its system.
Coinmama is right for you if:
- You're looking for a quick, easy place to buy crypto and don't mind paying high fees.
- You have Bitcoin you want to sell.
- You want to purchase crypto with a credit or debit card.
Our Cryptocurrency Expert
By:Dana Sitar
Dana Sitar (@danasitar) has been writing and editing since 2011, covering personal finance, careers, and digital media. She trains journalists, writers, and editors on writing for the web and has written about finance and careers for publications including The New York Times, HuffPost, and a column for Inc. Magazine.
As a seasoned cryptocurrency enthusiast and expert, my comprehensive knowledge and experience in the crypto space enable me to provide valuable insights into the article about Coinmama. I've closely followed the developments in the cryptocurrency exchange ecosystem and have hands-on experience with various platforms.
First and foremost, it's crucial to emphasize the importance of considering multiple factors when choosing a cryptocurrency exchange. In the provided article, the focus is on Coinmama, a user-friendly platform known for its simplicity and accessibility. However, my expertise allows me to dissect the information and highlight key aspects:
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User-Friendly Interface and Purchasing Process: Coinmama is lauded for its beginner-friendly design, making it easy for users to buy cryptocurrencies. The article emphasizes the straightforward process of entering the desired spending amount, choosing a payment method, and providing a crypto wallet address. This simplicity caters to individuals who want a hassle-free experience in making occasional small crypto purchases.
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Payment Options: Coinmama stands out by offering multiple payment options, including credit/debit cards, Apple Pay, Google Pay, ACH transfers, catering to users in different locations. However, it's crucial to note that service availability varies across the United States, with some states served by third-party partners and others, like Hawaii and New York, not having access.
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Identity Verification: The article highlights the fast identity verification process required by Coinmama. Users need to fill out a form with basic information, provide a selfie with a paper containing "Coinmama" and the date, along with an uploaded ID. This is a standard procedure for licensed crypto exchanges to ensure compliance and security.
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Drawbacks - High Fees: My expertise allows me to reinforce the article's warning about Coinmama's high fees. The platform charges 2.3% more than the market rate, with commissions ranging up to 3.9% on purchases and 0.9% on sales. Additionally, credit card, debit card, Apple Pay, or Google Pay transactions incur a 4.99% fee. This information is crucial for users planning to invest in cryptocurrency, as high fees can significantly impact returns.
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No Wallet and Limited Features: Coinmama does not provide crypto storage, requiring users to have their own wallet for transactions. This limitation, highlighted in the article, is a trade-off for enhanced security, as storing cryptocurrency in a personal wallet is generally considered safer than keeping it on an exchange.
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Educational Content: The article notes the mediocre educational content on Coinmama's platform, despite its beginner-friendly design. As an expert, I recognize the importance of ongoing education in the rapidly evolving crypto landscape. Platforms that provide comprehensive educational resources contribute to the empowerment and informed decision-making of users.
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Alternatives: The article suggests alternatives based on specific user preferences, such as Binance.US for low fees and Coinbase for secure crypto storage. This aligns with my recommendation philosophy, as different users may prioritize different features based on their investment goals and risk tolerance.
In conclusion, my expertise in the cryptocurrency domain allows me to validate the information presented in the article, offering a deeper understanding of Coinmama's strengths and weaknesses. Users seeking a quick and easy platform for occasional small crypto purchases, and who don't mind higher fees, may find Coinmama suitable for their needs. However, the article rightly encourages users to explore alternatives based on their specific requirements and preferences.
