Coinmama Review (2020)

Coinmama
  • Ease of Use
  • Beginner Friendly
  • Payment Options
  • Speed
  • Fees
3.6

Summary

Coinmama tends to be a well-recommended option to buy Bitcoin (BTC) in the UK and Europe, but it’s hard to understand why.

All Coinmama purchases have a fee of about 5.9%, but an extra 5% is added on if you’re using a debit or credit card to buy Bitcoin (BTC) or another cryptocurrency on their site.

There are numerous alternatives in the UK and Europe which allow you to buy and sell cryptocurrency with low fees and equivalent user experience.

Coinmama is a cryptocurrency broker that allows you to buy Bitcoin (BTC) and other cryptocurrencies in more than 188 countries worldwide.

If you’ve been researching where to buy Bitcoin (BTC), you’ve probably come across Coinmama a few times. They’ve been around since 2013, so it’s a well-established company which seems quite popular.

But is Coinmama really a good place to buy Bitcoin (BTC) and other cryptocurrencies?

In this Coinmama review, I’m going to bring together everything I could find out about Coinmama. By the end, you’ll be able to decide for yourself if it’s the best place for you to buy Bitcoin (BTC).

Ready? Let’s dive into this Coinmama review.

Advantages & Disadvantages

Advantages

  • Verification is quick (< 30mins).
  • It’s simple, quick, and easy to buy Bitcoin (BTC) and other supported cryptocurrencies.
  • Bitcoin (BTC) & 9 other cryptocurrencies are available.
  • Supports multiple payment methods (incl. debit card and UK bank transfer).
  • High purchasing limits.
  • Support 188 countries (incl. 43 of the 50 U.S. states).
  • 4.1 Trustpilot rating (184 reviews)

Disadvantages

  • Can’t sell cryptocurrencies other than Bitcoin (BTC) to Coinmama.
  • Fees of more than 10% if buying with a debit or credit card in the UK/EU.
  • Debit card purchases are processed in USD, so you will pay a non-sterling transaction fee (usually around 3%).
  • Suffered a data breach in early 2019.

What is Coinmama?

Coinmama was founded in 2013, which makes it a well-established place to buy Bitcoin (BTC) and other cryptocurrencies. It offers its services in more than 188 countries worldwide, which includes 43 U.S. states. Across the world, it has more than 2.2 million users.  When I asked, I was told that Europe was one of the largest markets that it served.

Some Coinmama reviews refer to Coinmama as a cryptocurrency exchange, but it’s actually a cryptocurrency broker. This means that you’re buying directly from Coinmama’s cryptocurrency inventory. Places like this make their money by selling Bitcoin (BTC) at a higher rate than they’ve bought it for.

Supported Countries

Coinmama supports more than 188 countries worldwide, which is quite impressive. This includes the U.S., where they support 43 out of the 50 states.

Because Coinmama has such board coverage, it’s easier to list what countries are restricted instead. Expand the sections below for more information.

What countries cannot use Coinmama?

The following countries are restricted and cannot use Coinmama whatsoever:

  • Cuba
  • Crimea
  • Iran
  • Israel
  • Lebanon
  • North Korea
  • Palestinian Territories
  • South Sudan
  • Sudan
  • Syria

What U.S. states are supported by Coinmama?

The following U.S. states can be signup and use Coinmama:

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Delaware
  • District of Columbia
  • Georgia, Idaho
  • Illinois
  • Indiana
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Virginia
  • Utah
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

What U.S. states and territories cannot use Coinmama?

The following U.S. states and U.S. territories are restricted and cannot use Coinmama whatsoever:

  • Hawaii
  • New Mexico
  • Oregon
  • Vermont
  • American Samoa
  • Guam
  • Northern Mariana Islands
  • Puerto Rico
  • United States Minor Outlying Islands
  • Virgin Islands

Supported Cryptocurrencies

Coinmama currently allows you to buy the following cryptocurrencies via their website:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Ripple (XRP)
  • Bitcoin Cash (BCH)
  • Ethereum Classic (ETC)
  • Cardano (ADA)
  • Qtum (QTUM)
  • Tezos (XTZ)
  • Eos (EOS)

You can only sell Bitcoin (BTC) to Coinmama. It will not buy any other cryptocurrencies back from you right now.

Payment Methods

The following payment methods are supported by Coinmama:

  • Debit card (Visa/MasterCard)
  • Credit card (Visa/MasterCard)
  • Bank transfer (SWIFT)
  • Bank transfer (SEPA)
  • Bank transfer (Faster Payments)

Debit or credit card purchases are processed immediately, but bank transfers can take between 1-3 business days (depending on which one you’re using).

Fees

Coinmama’s fees are included in the Bitcoin (BTC) and other cryptocurrency prices which are shown on their website. These fees total approximately 5.9% and are included in all your purchases, regardless of what payment method you use.

 

If you decide to buy Bitcoin (BTC) with a debit card, you’ll pay a processing fee of 5%. This fee also applies if you use a credit card to buy cryptocurrencies on Coinmama.

Remember: You will pay a cash advance fee if you buy cryptocurrencies using a credit card, regardless of what broker or exchange you’re using. It usually works out cheaper to use a debit card or bank transfer to buy cryptocurrencies.

When I used my debit card to buy Bitcoin (BTC) on Coinmama, my payment was unexpectedly processed in USD. This meant that I paid an additional fee to my bank for a non-sterling transaction, which was 3% plus £1.25 (but varies from bank-to-bank). When I totalled all the fees up, I found that I’d paid about 14% in fees. This is awful.

It’s much cheaper to send EUR via a SEPA bank transfer, or GBP via a UK bank transfer (via Faster Payments Service). If you use either of these payment methods, you won’t pay any processing fees.

However, this still means you’re paying 5.9% in fees – which is not competitive in the UK.

Buying Limits

It took Coinmama less than 1 hour to get my identity verified so I could start buying cryptocurrency on their website. This can vary from person-to-person, but I’ve been told that it’s usually sorted in under 30 minutes.

Buying limits are dictated by the level of your account. When you submit more information to Coinmama, they’re then permitted to give you higher limits.

Here are the level 1 limits which you’ll initially be given. For most of you, this will be enough and you don’t need to worry about increasing your limits.

If you do need higher limits, then these are the level 3 limits you can get once you’ve submitted all your documents. If you need even higher limits, you’ll need to contact the Coinmama support team.

Find out more about Coinmama’s limits here.

Customer Support

Coinmama prides themselves on its customer service. I was told:

I can gaurantee you will not find better support in the market. [This] is super important when someone is handling your money.

Their average response time to support requests is about 2 hours for email and just 1 minute for live chat support.

Customers also seem satisfied with Coinmama’s service. When I checked through Coinmama’s reviews on Trustpilot, one consistent theme was that people highly rated its customer support. Coinmama has previously told me that only 9% reported that they weren’t satisfied with its customer service. This is reflected in Coinmama’s Trustpilot rating, which is currently sitting at 4.1 (> 180 reviews).

Final Thoughts: High Fees, But Great Support

Coinmama has served more than 2.2 million customers across the world. They’ve made the process of buying cryptocurrency quick, easy, and simple – which is perfect for beginners.

But it’s hard to ignore the elephant in the room, which is quickly glanced over in most other Coinmama reviews. Coinmama’s fees are awful. If you’re a resident in the UK or another EU country, there are plenty of better options out there.

I cannot recommend Coinmama when there are so many alternatives which offer a comparable experience with lower fees. In the UK, here are just two alternatives that are worth reading about:

  • Solidi: They allow UK bank transfers (via Faster Payments) and have fees that are usually less than 2% (embedded into the prices you’re offered). Learn more in my Solidi review.
  • Wirex: Allows you to buy Bitcoin (BTC) and a range of other cryptocurrencies with debit cards, credit cards, and UK bank transfers (via Faster Payments). Their fees are just 1%. You can find out more in my full Wirex review.

For more options, check out my roundup of the best places to buy Bitcoin (BTC) in the UK.

Still want to go with Coinmama? Click the button below to head over to their website.

Any Questions?

Thanks for reading my Coinmama review.

If you have any questions, let me know in the comments section below.

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