Coinmama Review (2021)

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Coinmama
  • Ease of Use
  • Beginner Friendly
  • Payment Options
  • Speed
  • Fees
3.4

Summary

It’s hard to understand why Coinmama is such a well-recommended place to buy Bitcoin (BTC) in the UK, Europe, and the United States.

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, Europe, and the United States which allow you to buy and sell cryptocurrency with lower fees and an equivalent (or better) user experience.

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

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) in the UK?

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

Ready? Let’s dive in.

Advantages & Disadvantages

Advantages

  • Verification is quick (less than 30mins).
  • Supports multiple payment methods (incl. debit card, Apple Pay, & UK bank transfer).
  • Available in 188 countries (including UK, EU, & most U.S. states).
  • Bitcoin (BTC) & 6 other cryptocurrencies are available.
  • Simple, quick, and easy to use.
  • High purchasing limits.
  • 3.9 Trustpilot rating (280+ reviews).

Disadvantages

  • Can only sell Bitcoin (BTC) to Coinmama (no others are supported).
  • 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?

Sagi (CEO), Nimrod (COO & Co-Founder), and Laurence (Co-Founder).

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 most U.S. states. Across all these places, it has more than 2.6 million users. When I asked, I was told that Europe was one of the largest markets that it served.

Some Coinmama reviews refer to it as a cryptocurrency exchange. However, 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 price than they bought it for.

It currently has a Trustpilot score of 3.9 (280+ reviews), with many of the positive reviews highlighting their experiences with customer support.

Coinmama Supported Countries

Coinmama supports more than 188 countries worldwide, which is quite impressive.

This includes the UK, EU, and most of the U.S. states.

Because Coinmama has such board coverage, it’s easier to list what countries are NOT supported 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
  • Somaila
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
  • New Mexico
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • 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 York
  • American Samoa
  • Guam
  • Northern Mariana Islands
  • Puerto Rico
  • United States Minor Outlying Islands
  • Virgin Islands

Coinmama Supported Cryptocurrencies

You can currently buy the following cryptocurrencies via Coinmama’s website:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Ethereum Classic (ETC)
  • Cardano (ADA)
  • Tezos (XTZ)

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

Did Coinmama previously support more cryptocurrencies?

Yes. It seems like they recently removed support for the following cryptocurrencies:

  • Qtum (QTUM)
  • Eos (EOS)
  • Ripple (XRP)

Coinmama Payment Methods

You can use the following payment methods on Coinmama:

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

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). If you’re from the UK, the cheapest option is going to be a UK bank transfer (via Faster Payments).

What fiat currencies are supported on Coinmama?

The following fiat currencies are supported on Coinmama:

  • Great British Pound (GBP)
  • Euros (EUR)
  • United States Dollar (USD)
  • Australian Dollar (AUD)
  • Canadian Dollar (CAD)
  • Japanese Yen (JPY)

Despite this, you can buy all supported cryptocurrencies on Coinmama with any normal currency. But if the currency you’re using to make a payment isn’t on the list above, then you’ll pay additional fees when Coinmama converts it into USD.

Coinmama Fees

Coinmama’s fees are quite high compared to popular UK alternatives. 

Its fees are included in the 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% on top of this. This also applies if you want to use a credit card to buy Bitcoin (BTC) and other 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 this 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.
Coinmama Loyalty Programme

Coinmama has a loyalty programme that rewards you with lower fees if you purchase more cryptocurrency through their site.

Here are the three levels available:

  • Crypto Curious: The default level, which rewards you with no discounts.
  • Crypto Enthusiast: Unlock a 12.5% discount (approx. 5.2% in fees) when you buy a cumulative total of $5000 worth of cryptocurrency over a rolling 30-day period.
  • Crypto Believer: Get a 25% discount (approx. 4.4% in fees) when you buy a cumulative total of $18000 worth of cryptocurrency over a rolling 90-day period. You must also have been registered with Coinmama for 30 days.

Coinmama 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 – which is quick.

Buying limits are dictated by the level of your account. If you submit more information to Coinmama, you’ll unlock higher limits.

Here are the level 1 limits that you’ll initially be given. For most of you, I imagine this will be enough – which means 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 and complete further verification.

Find out more about Coinmama’s limits here.

Customer Support

Coinmama prides itself 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.

The Bottom Line: High Fees

Coinmama has served more than 2.6 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 and conveniently glanced over in most other Coinmama reviews.

Coinmama’s fees are awful. If you’re a resident in the UK, EU, or the U.S., there are plenty of alternatives that offer a comparable experience with lower fees.

Still want to check out Coinmama?

Click the button below to head over to their website.

Coinmama Website

Coinmama Alternatives in the UK

Here are three UK alternatives that are simple, easy-to-use, and don’t charge high fees:

CoinJar

CoinJar Review (Buy Bitcoin With GBP _1)

Established in 2013, you’re able to buy Bitcoin (BTC) and numerous other cryptocurrencies using its simple interface via their website or mobile app (iOS and Android).

There’s a fixed fee of 1%, but you might also be quoted prices a little above the real exchange rate.

CoinJar Review

Luno

Headquartered in the UK, Luno allows you to easily buy Bitcoin (BTC) and a small selection of other cryptocurrencies.

If you deposit GBP with a UK bank transfer (via Faster Payments), you’ll pay a fixed fee of 1.5% when you buy any supported cryptocurrency.

Luno Review

CoinBurp

Established in 2018, this UK-based cryptocurrency broker allows you to buy Bitcoin (BTC) without usually paying more than about 1.5% in fees (embedded in the exchange rate).

It’s currently the highest-ranking company in the ‘Cryptocurrency Service’ category on Trustpilot in the UK (4.9 stars, 920+ reviews).

CoinBurp Review

Other Options

Check out my roundup of the best places to buy Bitcoin (BTC) in the UK if you want to look through some more options.

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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