Coinmama Review 2021: Pros, Cons and How It Compares

Coinmama offers the ability to purchase some of the most popular cryptocurrencies, as well as sell Bitcoin for cash.

Kevin VoigtJun 2, 2021
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Our Take

2.5

NerdWallet rating 

The bottom line: Coinmama has eight years of experience providing transactions in the cryptocurrency space, but its fees are higher than other providers.

Coinmama

on Coinmama's website

on Coinmama's website

Fees

Up to 5.9%

on purchases; 2.9% on sales; other fees may apply

Account Minimum

$0

Promotion

None

no promotion available at this time

Pros & Cons

Pros

  • Offers access to 10 cryptocurrencies.

  • No fees for crypto deposits or withdrawals.

  • Range of payment options.

Cons

  • Higher fees than some other providers.

  • Doesn’t allow crypto-to-crypto transactions.

  • No crypto wallet or mobile app.

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Full Review

Founded in 2013 in Tel Aviv, Israel, and now with offices in Dublin, Coinmama says it has more than 2.6 million users in 188 countries. The company allows users to buy 10 cryptocurrencies — including Bitcoin, Ethereum and Cardano — and sell Bitcoin for fiat currency, including U.S. dollars, UK pounds and euros.

Coinmama is known for its variety of payment options, including the ability to purchase cryptocurrencies with Visa or Mastercard credit cards. That practice may have earned it fans, but likely not among investment advisors: Purchasing any investment like cryptocurrency with a high-interest credit card can be risky business. In September 2020, Coinmama reached a deal with Apple to allow the use of Apple Pay for crypto purchases.

Coinmama sets itself apart in two other ways. One, unlike many other exchanges, Coinmama doesn't facilitate transactions between buyers and sellers; all cryptocurrencies sold are from Coinmama’s own inventory, so the transaction is between users and the company. Two, Coinmama doesn’t provide cryptocurrency wallets, the storage device for digital currencies. So while there’s no chance of digital currency being stolen from the exchange, you will need your own crypto wallet to make any transactions.

Coinmama is best for:

  • Cryptocurrency traders.

  • Bitcoin sellers.

Coinmama at a glance

Minimum trade

$50 to buy cryptocurrency, $200 to sell.

Trading and transaction fees

Market rate plus 2% to buy; market rate plus up to 0.9% to sell.Up to 3.9% on purchases, plus 5% for credit/debit card transactions. Other fees may apply.

Number of cryptocurrencies

10.

Crypto-to-crypto trading pairs

None.

Website transparency

Some information difficult to find on the website.

Can use your own digital wallet?

Yes.

Mobile app

No mobile app.

Customer service

Email only.

Promotion

None.

Coinmama features you should know

Cryptocurrencies offered: Coinmama users can buy Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Qtum, Ripple, Ethereum Classic, Cardano, Tezos and EOS. However, users can only sell Bitcoin for fiat currency (such as U.S. dollars) on the exchange. That may be a turnoff to users looking to cash in other cryptocurrencies or make cryptocurrency-to-cryptocurrency trades.

Trading platform: Coinmama’s simple transaction flow — buying and selling directly from the company — lends itself to the site’s simple design. Users select how much they want to buy, either by U.S. dollar amount or amount of Bitcoins. The site sells fractional shares of Bitcoin, so you can make purchases for as low as $50 worth of Bitcoin based on its current spot trading price. Sales of Bitcoin have a $200 minimum.

Crypto trading costs and transaction fees: To trade cryptocurrency, Coinmama charges 2% on top of the market rate as determined by TradeBlock’s XBX Index. In addition, there is a commission fee of up to 3.9% on crypto purchases and up to 0.9% to sell Bitcoin. By comparison, SoFi Active Investing charges 1.25% for Bitcoin trades, eToro charges less than 1% and Robinhood charges no fees for Bitcoin trades.

Coinmama offers reduced fees to sell through its loyalty program. Users who make $5,000 in purchases over 90 days get their sales fee reduced by 12.5%; users who purchase $18,000 over 90 days or a lifetime purchase amount above $50,000 get 25% off their sales fee.

Additional fees still apply depending on payment method. Coinmama charges an additional 5% for purchases made by credit card, debit card or Apple Pay. Also an important note: Visa and Mastercard consider the use of credit cards to purchase cryptocurrency as a kind of cash advance, which may come with additional fees from your bank.

Trades funded by SWIFT bank transfer — which is the required method for all transactions from U.S. banks — are charged a flat fee of 20 British pounds (about $27) for transactions below $1,000. There are no fees for SWIFT bank transfers of $1,000 or more.

Security: Coinmama never holds customer cryptocurrency funds, nor stores your payment information, which eliminates the risk of losing your cryptocurrency or compromising personal financial information on the site, the company says. Still, the company announced in 2019 that 450,000 email addresses and hashed passwords were hacked in a data breach, which may give some new users pause.

No crypto wallet or mobile app: While no crypto wallets to store digital currency eliminates the possibility of your cash being stolen in a hack, you’ll still need to get an online crypto wallet from another vendor before making purchases on the site. Many crypto beginners may prefer a one-stop shop from exchanges that also provide online storage. Coinmama has a partnership with crypto wallet ZenGo, which it recommends for new users without a crypto storage wallet.

Also, Coinmama doesn’t have a mobile app — although its simple interface can be easily used on a smartphone browser.

Availability in most U.S. states: Coinmama isn’t available in New York or Hawaii. Residents in these 15 states will be redirected to third-party provider Simplex when creating their account: Alabama, Arkansas, Connecticut, Delaware, Georgia, Florida, Iowa, Louisiana, Nevada, New Mexico, Oregon, Rhode Island, South Dakota, Vermont and Washington.

Is Coinmama right for you?

Coinmama’s easy interface and simple transaction flow may be attractive to those new to cryptocurrency trading, but its fees are pricier than many competitors.

Regardless of your choice, understand that investing in cryptocurrencies like Bitcoin is highly speculative and known for its volatility. It’s wise to never invest any more than you can afford to lose.

on Coinmama's website