Do Coinmama’s strengths outweigh its limitations? Our review can help you decide.
Coinmama is one of the more popular bitcoin marketplaces out there, boasting over 200,000 customers and selling both bitcoin and Ethereum to verified users.
There are many reasons to buy bitcoin: for investment purposes, to spur adoption of an all-digital currency or as a means to transact business anonymously. As the price of bitcoin has skyrocketed, so too has interest in this and other cryptocurrencies.
Coinmama is a solid platform to buy your bitcoin or Ethereum with a credit card. However, you can’t sell your bitcoin through the site, and its fees quickly add up. Should these drawbacks prevent you from using Coinmama? Let’s discuss the pros and cons.
How does Coinmama work?
Coinmama has been selling bitcoin for several years, and the process for buying bitcoin is reasonably straightforward. First, you create an account with the site. This requires your name, email address and country of residence. You can buy a single bitcoin, multiples or fractions, down to as little as 0.1 bitcoin.
Before you can complete the purchase, however, you must have your own digital wallet and you must be verified. Verification requires you to provide Coinmama with proof that you are who you say you are. You do this by uploading a copy of your passport or driver’s license.
Which cryptocurrencies can I buy?
Coinmama’s main focus is bitcoin, but it also sells Ethereum – the second most popular digital currency after bitcoin and the one preferred by many more advanced investors.
However, you cannot sell your bitcoin tokens back to Coinmama, nor does the service connect you with possible buyers. The company says a sell-side function is “coming soon.” For now, if you want to sell your digital currency, you’ll need to use a different service.
Coinmama is currently available in 226 countries worldwide, and also accepts all local currencies.
Which payment methods are accepted?
- Cash (via Western Union transfer)
Coinmama supports Visa and Mastercard credit or debit cards via the Simplex payment system. If you are paying by cash, you must use Western Union. Coinmama does not let you link your bank account or support other wire transfers.
How much will it cost me to use Coinmama?
The company charges a 6.3% transaction fee for each purchase. If buying with a credit card, there is an additional 5% fee assessed by Simplex, Coinmama’s credit card processor.
|Credit card purchase fee||5%|
|Cash advance fee*||*|
*Note: According to Coinmama, some banks and credit card issuers consider buying bitcoin to be the same as a cash advance, and will charge users hefty fees to expedite the transaction. This is not a Coinmama fee. Make sure your credit card doesn’t add on any cash advance fees when you buy bitcoin. If they do, dispute it, which just might get you a refund.