The purchase of Bitcoin and similar cryptocurrencies has seen various levels of rise and decline within the past few years. There have been several platforms that have allowed people to buy Bitcoin and some offer better options than others. Furthermore, there is always that niggling doubt that you might just be getting taken for a ride. With something as volatile and unregulated as cryptocurrency, it can be a challenge to identify the legitimate from the scams.
Here, we will provide a Coinmama review and help you understand whether or not it is beneficial to look into for your next cryptocurrency purchase.
What Is Coinmama?
Coinmama is a platform that allows users to purchase Bitcoin and other cryptocurrencies using their credit card. It was founded in 2013 and since then has proven to be one of the more reliable companies that allows you to buy cryptocurrency.
There are several features associated with Coinmama. When getting started on any new platform, it is essential to understand the basics of what is offered. For our Coinmama review, we have outlined some of the key features associated by joining the platform. These include:
- Credit card purchasing
- Multiple cards accepted (Visa and Mastercard as well as Western Union transfers)
- Instant transactions
- Multiple cryptocurrencies supported
- Spending limits
Among many more. When looking for a suitable and safe platform to buy cryptocurrency, users want to understand what they are getting up front through company transparency. These sorts of features are essential to know when considering what platform to use.
Previously, Bitcoin and other currencies needed to be purchased and transferred through Western Union, however, this has changed in recent years and those looking to purchase the currency can do so using their credit or debit cards.
The immediate transaction feature also reduces the chance of duplication and spending more money that you have. This has haunted crypto traders in the past, and it can be a challenge to sell the amount that you don’t need (which you cannot do through Coinmama). With Coinmama, this is avoided, providing users with peace of mind and eliminating the potential for over-buying or similar mistakes.
This feature is further benefited by Coinmama’s policy to lock the crypto rate upon purchase. This is done for the benefit of the customer, who will receive the exact amount they ordered regardless of any fluctuation between order time, processing and eventual transfer.
Coinmama has also introduced daily and monthly spending limits. It can be easy to get carried away with purchasing, and the funds can disappear before you even realise it. To solve this, Coinmama implemented a daily spending limit of $5000, which renews 24 hours from the time of purchase, and a monthly limit of $20,0000, which operates in a 30-day cycle.
If you are a serious cryptocurrency trader, then this might prove a challenge, but it works to prevent the overspending problem that can arise with those unfamiliar with Bitcoin or other crypto trading. Furthermore, to prevent unnecessary fluctuation in the market, there is a minimum purchase of 60 USD (or Euro equivalent).
Coinmama also operates in over 180 countries and allows users to purchase in any currency, however, there will be added charges for conversion. The primary currencies used by Coinmama are USD and EUR.
Recently, Coinmama have introduced other cryptocurrencies to their platform. Previously, the only currencies supported were Bitcoin and Ethereum, however, they have now introduced Litecoin, Bitcoin Cash, Cardano, Qtum and Ethereum Classic.
Coinmama’s fees are not unlike those that you see with other crypto purchasing platforms. Initially, the charge per transaction for bitcoin purchases is 5.9%. This is because there is no central bank which controls the Bitcoin rate.
Another disadvantage is Coinmama does not cover the entirety of the US. The list of states that Coinmama operates in can be found on their website, and currently covers 23 states. But with business ever-expanding, the company is sure to look to spread their influence further in the coming months and years.
There is also the added issue of not being able to sell your cryptocurrency. At this moment, users are only permitted to purchase. If you want to be able to do both, then using a different service might be best for you.
Recently, Coinmama has seen delays in verifying and processing orders. This has arisen due to a rise in use during December of 2017. The company has been striving to upgrade their servers to help cope with the greater amount of orders and waiting times for cryptocurrency.
While this was fixed and orders returned to the convenient immediate transfer, the potential for similar issues could be a problem as awareness about Coinmama increases. Being prepared for such instances will stave off any initial panic that users might feel when they realise that they are waiting longer than expected for transfers to complete.
A Grey Area
With all the talk of GDPR and security issues recently, it might unsettle some that to increase your profile and achieve verification on the site you are required to provide location (address, country, etc.) information.
To further increase this reputation – that is, to be able to purchase upwards of 1,000,000 USD in your chosen cryptocurrency – you will need to provide a government-issued ID (for Level 1, up to 10,000 USD), for Level 2 (up to 50,000 USD) users are required to provide two government IDs along with a utility bill or a selfie holding the ID. Finally, to achieve Level 3 (1,000,000 USD), users need to complete a form and submit it to Coinmama.
Depending on your beliefs about data sharing, you might consider this a breach of privacy, or you might consider it a necessary tactic to reduce spamming.
Unlike many crypto-purchasing platforms, Coinmama seems to be more above board and reliable. There have been some reports of scams, but with reliable and quick response times for support makes any issues much more straightforward to overcome.
With its user-interface which is both aesthetically pleasing and easy to use, Coinmama is perfect for beginners. The inability to sell cryptocurrencies as well as purchase them could pose a problem for experienced crypto traders, though.
Knowing this, users need to consider if everything in this Coinmama review will benefit them. For some, it will be ideal, but for others, it might prove too restrictive for what they really want to do.