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 VoigtOct 14, 2021

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Our Take

2.5

NerdWallet rating 

The bottom line: Coinmama has nearly a decade 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

2.86% - 3.81%

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.

Compare to Similar Brokers

Coinmama
Coinbase
Gemini
NerdWallet rating 
NerdWallet rating 
NerdWallet rating 
Fees

2.86% - 3.81%

other fees may apply

Fees

0.5% - 4.5%

varies by type of transaction; other fees may apply

Fees

0.5% - 3.99%

depending on payment method and platform

Account Minimum

$0

Account Minimum

$2

Account Minimum

$0

Promotion

None

no promotion available at this time

Promotion

Earn $5

in bitcoin for getting started on Coinbase

Promotion

$20 of BTC

for new users after trading $100 or more within 30 days

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Become a NerdWallet member, and we’ll send you tailored articles we think you’ll love.

Full Review

Where Coinmama shines

Payment options. 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.

Simplicity. 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. You will, however, need your own digital wallet to store the cryptocurrencies you buy.

Where Coinmama falls short

Fees. Coinmama has higher fees than some other providers, though these fees fall as the amount of crypto you purchase and the time you’ve been a customer increase.

No crypto-to-crypto trading. Coinmama doesn’t allow crypto-to-crypto transactions. To purchase crypto, you’ll need to use fiat, such as USD or GBP.

No crypto wallet. Coinmama does not issue a wallet. Rather, the company will send coins to whichever wallet you own.

No iOS mobile app. Only an Android app is available.

Coinmama is best for:

  • Cryptocurrency traders.

  • Bitcoin sellers.

Coinmama at a glance

Minimum trade

$30 to buy cryptocurrency, $100 to sell.

Trading and transaction fees

Market rate plus up to 3.81% for users to buy; market rate plus 0.9% for users to sell. Credit/debit transactions incur an additional 5% charge. 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

Android app only.

Customer service

Email, phone (request a call back), chat and social media.

More details about Coinmama's ratings

Minimum trade

The minimum amount to buy on Coinmama is $30, while the minimum amount to sell is $100.

Trading and transaction fees

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 $30 worth of bitcoin based on its current spot trading price. Sales of bitcoin have a $100 minimum.

Crypto trading costs and transaction fees: To trade cryptocurrency, Coinmama charges a rate that’s based on the market rate of TradeBlock’s XBX Index plus 2%. In addition, there is a commission fee of up to 3.81% on crypto purchases and up to 0.9% to sell bitcoin.

Coinmama offers reduced fees to buy and 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. Fees fall to 2.86% for those in the highest loyalty program.

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.

Number of cryptocurrencies

Coinmama users can buy bitcoin, bitcoin cash, litecoin, ethereum, tezos, ripple, cardano, dogecoin, uniswap and chainlink. 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.

Crypto-to-crypto trading pairs

Coinmama does not offer crypto-to-crypto trading. Users can only purchase crypto currencies with fiat.

Digital wallet options and security

No crypto wallet: While not having a crypto wallet 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.

Security: Coinmama never holds customer cryptocurrency funds, nor stores your payment information, so your cryptocurrency and personal financial information aren’t available on the site to be hacked. 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.

Mobile app

Coinmama’s app is available on Android only, but has received fairly good reviews.

Customer support options

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.

How do we review crypto exchanges and platforms?

NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. cryptocurrency exchanges, along with emerging industry players, using a multifaceted and iterative approach. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgments on which ones will best meet your needs.

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We collect data directly from providers, and conduct firsthand testing and observation through provider demonstrations. The final output produces star ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.

RATING FACTORS

Evaluations vary by provider type, but in each case are based upon the weighted averages of factors that include but are not limited to: trading and transaction fees, crypto withdrawal fees, cryptocurrency selection, crypto-to-crypto trade offerings and whether consumers can use their own cryptocurrency wallets. We also score providers based on website transparency regarding fees and offerings, their mobile platforms and customer support.

FACTOR WEIGHTINGS

The weighting of each factor is based on our team’s assessment of which features are the most important to consumers and which ones impact the consumer experience in the most meaningful way. The factors considered, and how those factors are weighted, change depending upon the category of providers reviewed.

INFORMATION UPDATES

Writers and editors conduct our reviews on an annual basis but continually make updates throughout the year. We maintain frequent contact with providers and highlight any changes in offerings.

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The combined expertise of our Investing team is infused into our review process to ensure thoughtful evaluations of provider products and services from the customer perspective. Our writers and editors combine to have more than 70 years of deep experience in finance, ranging from a former Wall Street Journal reporter to a former senior financial advisor at Merrill Lynch.

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on Coinmama's website