Coinmama Review (May 2022): Why We Don’t Like It

April 17, 2022
Reviews

Coinmama is a cryptocurrency exchange that allows users to buy and sell cryptocurrencies instantly through an intuitive and easy-to-use user interface that verifies accounts within minutes. However, because of its limited number of supported cryptocurrencies, its lack of advanced trading features, and its very high purchase fees, I’m hesitant to recommend Coinmama as a top crypto exchange for Canadians to use.

Instead, I recommend CoinSmart, Bitbuy or Newton, since they all offer more features and charge lower fees than Coinmama. For the best possible crypto trading experience, you can’t go wrong with any of these three platforms.

CLAIM MY $50 BONUS
Offer ends May 19.

What Is Coinmama?

Coinmama is a cryptocurrency exchange that was founded in 2013. Located in Slovakia, the platform allows users to buy and sell cryptocurrencies through an intuitive and easy-to-use user interface that is ideal for newcomers to the world of cryptocurrency investing. The platform is used by over 3,200,000 people worldwide and can be used in over 188 countries to buy Bitcoin and Ethereum.

Some of the platform’s defining features are its high spending limits (allowing you to spend up to USD 35,000 per day with a wire transfer), its instant account verification, and its instant delivery of the tokens you’ve bought.

To start off this Coinmama review, let’s take a deeper look at Coinmama’s pros, cons and features.

Why you should trust me

  • Experienced
    I bought my first cryptocurrency (Bitcoin) in 2013, bought Ethereum in 2017, and have held active accounts with at least 5 exchanges since 2018.
  • Unbiased
    All of my selections are supported by multiple data points, including crypto thought leaders, security experts, and TrustPilot reviews.
  • Deep Research
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Coinmama Pros & Cons

Coinmama Pros

  • Very user-friendly.
  • Instant account verification.
  • Solid regulation.
  • No crypto deposit or withdrawal fees.
  • A wide array of supported countries (188).
  • High spending limits (Up to USD 35,000 per day with a wire transfer).
  • Multiple payment options.

Coinmama Cons

  • You can only buy a limited number of supported cryptocurrencies (Bitcoin and Ethereum).
  • Higher fees when compared to other crypto exchange alternatives.
  • No advanced trading tools or features.
  • Its mobile app is not good, and it’s only available to Android users.
  • You’re unable to trade Bitcoin and other altcoins for other crypto tokens.

Coinmama Features

1. Coinmama Interface

Coinmama’s desktop interface is very user-friendly and easy to navigate. Coinmama is a non-custodial exchange, meaning that every crypto that you buy comes from the platform’s own supply, so you’ll only ever be making transactions with the company. However, this does mean that you’ll need an external wallet to store the crypto that you buy, so keep that in mind.

Coinmama doesn’t offer an advanced trading platform, which makes the exchange feel pretty basic. You can only place market orders using Coinmama, which is a major downside: if you’re looking for more advanced order types such as limit orders or stop-loss orders, you’re going to have to start looking elsewhere.

Their trading fees are based on the TradeBlock XBX market rate + 2%. There’s also a fee of up to 3.90% on buy transactions and up to 0.9% on sell transactions, which is paid to the platform when you make a trade. All of these rates sound painful, so you can expect your investment returns to take a significant hit when using this platform.

Coinmama also doesn’t allow you to conduct crypto-to-crypto trades, which is very confusing. Instead, you’re only able to buy cryptocurrencies with fiat money and sell them for fiat money (such as CAD and USD).

2. Coinmama Mobile App

Coinmama’s mobile app is currently only available on Android devices, but it’s likely that they have plans to launch an iOS app in the near future. The app allows you to buy and sell cryptocurrencies through an intuitive interface, just like the desktop platform. Unfortunately, just like the desktop version, it doesn’t offer any advanced trading features or tools, making the app feel just as basic.

As for the app’s ratings on Android, it has an average of 2.7 out of 5 stars based on 120 reviews, indicating significant user dissatisfaction. Critiques of the app mention the app failing to load at all and users being unable to log in despite using the correct credentials, which gives the impression that the app is nearly unusable on mobile.

3. Coinmama Security Features

Coinmama is a fully regulated exchange run by Cmama LTD, which is a Money Services Business (MSB) registered with the Financial Crimes Enforcement Network (FinCEN) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). However, be aware that Coinmama is not registered with the Ontario Securities Commission (OSC), and Coinmama funds are also not insured, which means that your deposits are not protected in the event of bankruptcy.

The site also follows Know Your Customer (KYC) and Anti-Money Laundering (AML) standards, which is why you’ll need to validate your account before placing any orders or increasing your spending limits.

Coinmama also offers two-factor authentication (2FA), but this measure isn’t mandatory and can be disabled at any time, negating the effectiveness of the security measure in the first place. In case this security measure is disabled, an email verification of your wallet address will be sent as an additional security measure whenever you place an order, which is good, but not good enough.

4. Coinmama Customer Support

Coinmama has a pretty solid customer support service with a variety of different ways to get in touch, such as:

  • Phone: +1 (650) 600-9939 (California, 7:00 AM – 24:00 AM GMT).
  • Email: support@coinmama.com (24 hours).
  • Live Chat: Available as an icon at the bottom right corner of the platform.

They also have a pretty comprehensive FAQ section on their website that covers most topics related to using the platform, and they have a social media presence, with channels like LinkedIn, Telegram, and Twitter open to the public.

You can also submit a ticket with your inquiry through the customer service page, but since they don’t offer an estimate of when they’ll reply, you can expect to wait a fair bit before you can get some help.

5. Coinmama Loyalty Program For Reduced Fees

One of Coinmama’s more unique features is its Loyalty Program For Reduced Fees, which is a tiered system that allows users to get reduced fees depending on the amount of crypto that they buy or sell using Coinmama.

There are three levels you can have your account upgraded to under Coinmama’s Loyalty Program. You can retain your position if you meet a cumulative minimum purchase amount over a rolling 90-day period once you’ve been upgraded to a new loyalty level.

Loyalty LevelFees DiscountSpending RequirementFaster Support
Crypto CuriousN/AN/ANo
Crypto Enthusiast12.5%5,000 USD over 90 daysYes
Crypto Believer25%18,000 USD over 90 days
50,000 USD over a lifetime
Yes

Cryptocurrencies On Coinmama

Coinmama currently only supports the buying and selling of Bitcoin (BTC) and Ethereum (ETH). All other cryptocurrencies are not available to buy and sell on the platform. This is a huge downside for crypto investors who want to diversify their portfolios with other altcoins, or any crypto investor looking to invest in rare altcoins before anyone else does.

Coinmama Fees

Trading Fees & Spreads

As mentioned previously, Coinmama has no deposit or withdrawal fees. However, you will incur fees if you buy and sell crypto on the platform, and these fees are based on the TradeBlock XBX’s market rate + 2%.

Here’s a full list of the fees you can expect to incur whenever buying and selling crypto using Coinmama:

TransactionFee
Buying crypto (Bitcoin, Ethereum)3.9%
Selling crypto (Bitcoin, Ethereum)0.9%
Debit/credit card purchases5%
SWIFT transfer (<1,000 USD)Min. £20
SWIFT transfer (>1,000 USD)TradeBlock XBX’s market rate + 2%
SEPA transferTradeBlock XBX’s market rate + 2%

These fees can be reduced depending on your Loyalty Level (down to 3.41% and 2.93% for buy and sell orders respectively), but nevertheless, these fees are really high, especially when comparing them to the fees of exchanges like CoinSmart, Bitbuy, and Newton, all of which charge very low fees. They will most certainly eat into your profits if you’re looking to trade crypto on a regular basis.

3 Exchanges I Recommend Over Coinmama

Coinmama isn’t a bad exchange, but it’s also not the best in Canada. This is mainly because of its high fees, limited crypto support, and its lack of advanced trading orders. That’s why I recommend any of these three exchanges over Coinmama:

  1. CoinSmart: With trading fees of just 0.2%, quick deposits and withdrawals, and best-in-class customer support, there’s no questioning why CoinSmart is one of the most popular exchanges in Canada. Get your $50 signup bonus with CoinSmart here.
  2. Bitbuy: With trading fees as low as 0.1%, tight spreads, and a well-rated mobile app, Bitbuy is my go-to exchange for making large purchases due to its extremely low fees. Get your $50 signup bonus with Bitbuy here.
  3. Newton: With zero deposit and withdrawal fees, instant account verification, and a beautiful website and app, I recently signed up with Newton and have been loving it every step of the way. Get your $25 signup bonus with Newton here.

Here’s a quick summary of these three exchanges:

Best Overall

Trading fees: 0.2%
Security: 95% cold storage
Signup bonus: $50

Trusted by 200,000+ Canadians.

★★★★★

Rated 4.9/5

Lowest Fees

Trading fees: 0.1% – 0.2%
Security: 99% cold storage
Signup bonus: $50

Serving over 400,000 Canadians

★★★★★

Rated 4.8/5

Best For Altcoins

Trading fees: 0.4%
Security: 95% cold storage
Signup bonus: $10

Trade with 10x leverage.

★★★★

Rated 4.2/5

How To Withdraw From Coinmama

To sell you Bitcoin and withdraw fiat (cash) from Coinmama, follow these steps:

  1. Sign up or log in to your Coinmama account.
  2. Select “sell” and enter the Bitcoin/Ethereum amount you’re selling.
  3. Choose SWIFT as your payout method.
  4. Enter your bank country, bank account number, and routing number or Bank Identifier Code.
  5. Complete your personal details.
  6. From your own wallet, send the Bitcoin amount to the wallet address provided.
  7. As soon as the coins have been confirmed on the Blockchain, Coinmama will send the fiat amount to the bank account provided.

In Summary

Coinmama is a cryptocurrency exchange that allows users to buy and sell cryptocurrencies instantly through an intuitive and easy-to-use user interface that verifies accounts within minutes. However, because of its limited number of supported cryptocurrencies, its lack of advanced trading features, and its very high purchase fees, I’m hesitant to recommend Coinmama as a top crypto exchange for Canadians to use.

Instead, I recommend CoinSmart, Bitbuy or Newton, since they all offer more features and charge lower fees than Coinmama. For the best possible crypto trading experience, you can’t go wrong with any of these three platforms.

CLAIM MY $50 BONUS
Offer ends May 19.

Coinmama FAQs

Is Coinmama Safe & Secure?

Yes, trading with Coinmama is completely safe and secure. The platform is fully compliant with all applicable laws and regulations (including AML/KYC). The site also never keeps your crypto assets or keeps track of your payment details, so they can’t be hacked.

Is Coinmama Legit?

Yes, Coinmama is legit for several reasons: it’s a licensed crypto exchange registered with the Financial Crimes Enforcement Network (FinCEN) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), it has been in operation since 2013, and it has served over three million customers across 188 countries during that time.

Is Coinmama Legal In Canada?

Yes, Coinmama operates legally in Canada. After all, it’s a registered Money Service Business with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Is Coinmama Trustworthy?

Yes, Coinmama is a trustworthy cryptocurrency exchange for a variety of reasons: it is regulated by the Financial Crimes Enforcement Network (FinCEN) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), it has been in operation since 2013, and it has served over three million users from around the world.

Does Coinmama Verify Accounts Instantly?

Yes, Coinmama does verify some accounts instantly, though if your account needs to go through the manual verification process for some reason, these are the documents you’ll need to provide:

  • A government-issued ID (e.g. passport, driver’s license, national ID card).
  • A selfie of yourself holding your government-issued ID.
  • A piece of paper on which you’ve handwritten “Coinmama” and today’s date.

Is Coinmama Good For Canadians?

Coinmama is a decent exchange for Canadians, though if you’re looking for the best overall trading experience, I recommend using CoinSmart, Bitbuy, or Newton instead. Each of them offers quite a bit more than Coinmama, and I’m confident you’ll have a better experience with them.

How Well Is Coinmama Reviewed On Reddit?

Reddit’s review of Coinmama is uncertain: some Redditors have good things to say, while others don’t. Of course, Redditors are known for their brutally honest opinions, so take what they say with a grain of salt.

Can I Buy Dogecoin With Coinmama?

No, you cannot buy Dogecoin with Coinmama. If you want to buy Dogecoin, I suggest using CoinSmart, Bitbuy, or Newton instead.

Is Coinmama Insured?

No, Coinmama’s crypto holdings are not insured.

Coinmama Referral Code

You don’t need a referral code to get your signup bonus with Coinmama. Simply sign up using our signup bonus link and then deposit $100 or more into your account.

Does Coinmama report to the CRA?

Yes — as a Money Services Business (MSB) registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Coinmama is required to report to the Canada Revenue Agency (CRA). With that said, Coinmama is only required to report transactions larger than $10,000 to the CRA. Transactions below that amount do not need to be reported to the CRA.

The Best Crypto Exchanges In Canada

Best Overall

Supports: 16 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.2%

$50 bonus ends May 19.

★★★★★

Rated 4.9/5

Lowest Fees

Supports: 17 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.1% - 0.2%

Free account, instant verification

★★★★★

Rated 4.8/5

Best For Altcoins

Trading fees: 0.4%
Security: 95% cold storage
Signup bonus: $10

Trade with 10x leverage.

★★★★

Rated 4.2/5