Coinmama cryptocurrency exchange: is it a good service?
Cryptocurrency exchanges have recently grown in popularity because of the news about BTC and other coins all around the world. People tend to invest their funds and make some quick earnings, but not everyone knows how to avoid scams. In this article, we have made a review of Coinmama, one of the most popular cryptocurrency exchanges on the Web.
About Coinmama
The company was founded in 2013. Although it is registered in Slovakia, it technically is an Israeli company because it is owned by New Bit Ventures Limited. It is quite prominent because of its availability in 188 countries. The USA is included in the list too, but only 24 states consider the exchange to be legal.
The security of this service is provided by its way of making transactions. Users cannot buy or sell Bitcoin directly. The funds are always sent to and from the company. This makes sure that manipulative frauds do not deceive newcomers in the field.
Fees at Coinmama
If we compare the service with its competitors, we shall see that the fees here are much higher. For each transaction, users have to pay 5.50% to the exchange. This includes the rates for both BTC and ETH.
Also, 5% is charged for each transaction that involves the usage of a bank card. It is added to the “cart” after the user selects his payment method. Another point is that is the transaction is considered to be “cash”, then the customer may be charged a Cash Advance fee by the bank he works with. However, this fee is not guaranteed.
Basically, when you work with Coinmama, you should always add near 10% to the transaction sum. Although this sum may seem to be very big, it is a good pay for ensuring the security of your funds.
Limitations
The buying limit at this exchange is quite high. After the verification is complete, you can purchase no more than $5,000 per day. The monthly limit is stuck at $30,000. You do not have to wait for a specific day until the limits refresh. The countdown starts after one of the limits has been reached. For instance, as only you reach the daily limit, you have to wait for 24 hours to pass until you can trade again. With monthly limitations, you will have to wait for 30 days.
At the moment of this review being written, Coinmama displays currencies in USD and EUR. Other currencies are planned to be added in the future. Nevertheless, you can still buy cryptocurrencies with all fiat currencies, but you have to keep in mind that you may be charged an additional fee for currency exchange.
Verification levels and limitations
There are three verification levels. Each requires specific documents and provides various payment and purchase limits.
- Level 1
To get this level, you need to upload a valid ID that was issued by your government. This can be a passport, driver’s license, etc. This lets you buy up to $15,000.
- Level 2
In this case, you have to provide 2 valid IDs that were issued by your government. For example, this can be a passport with a utility bill. The limit gets higher and already reaches $50,000 in cryptocurrency.
- Level 3
To get to the final level, the trader must fill in a special form provided by the exchange and return it. The limit grows to $1 million in crypto, which is an enormous sum.
As you can see, verifying your account is not difficult. All you have to do is upload a photo of any of the required documents and wait for one of the agents from the exchange checks them.
Can you trust Coinmama?
Coinmama is not the biggest exchange in the industry and is somewhat left behind by its competitors. In average, it has about 600,000 visitors per month while Coinbase has over 34 million visitors per month. Nevertheless, the company slowly keeps on gaining its market share and builds up its reputation.
Up to now, Coinmama has experienced no security breaches or successful hacking attacks. The company is legally registered in the United States with FinCEN. The users’ funds are not kept within the service, but the bank card info is. However, the company states that all this information is not kept on the main exchange server, so it is relatively safe.
Customer support at Coinmama
The customer support can be easily contacted via email. However, it is recommended to check out the FAQ before you address an agent with your issues. It is likely that the problem has already been described and you can get an answer much quicker that way.
According to user opinions and several other websites, the support agents usually answer within 24 hours after a ticket is sent. Longer response time is only an issue during weekends or holidays. Coinmama works from Sunday to Thursday, so keep this in mind when you send a help request.
Final thoughts
Coinmama is a trustworthy cryptocurrency exchange that works legally in a lot of countries around the world. Although its fees are higher than those of its competitors, the company provides secure and high-quality service to each customer. There have been no security breaches in the past and it is unlikely that any will occur in the future. The limits are good and the customer support answers pretty quickly. What else is there to wish for?