Our Verdict

Disclaimer: Our evaluation process and criteria are designed to assess sophisticated trading platforms. However, Coinmama doesn’t entirely meet these standards, as it primarily serves as a straightforward platform centered around purchasing and selling crypto without advanced trading features. Nonetheless, Coinmama remains a decent option for novice traders and individuals interested in buying and holding crypto for the long term. For this reason, we’ve excluded it from our ranking and instead provided a review for users seeking these types of services.

Coinmama is a simple platform for buying and selling cryptocurrency directly to and from third-party wallets. The platform supports 82 cryptocurrencies, 44 fiat currencies for trading, and over 500 tokens for crypto swaps. It also offers a Bitcoin calculator with limited functionality.

KYC is required for buying and selling crypto but not for crypto swaps, making it an option for users who prioritize speed and anonymity. As a non-custodial platform, Coinmama does not store users’ crypto or fiat, which enhances its security. However, this convenience comes with exceptionally high fees, surpassing the advertised 3.9% maximum and being up to five times costlier than other platforms.

After three weeks of testing, I received no responses from customer support via Email, which was disappointing. In my opinion, Coinmama suits those who need a simple way to buy crypto for personal use and are indifferent to spending high fees or using advanced trading features.

Coinmama Pros and Cons

Supported Countries and Regions

Coinmama operates as a non-KYC exchange for crypto swaps, with third-party payments enabling access from nearly anywhere in the world. While its website lacks clarity on detailed service availability or restrictions, it serves over 190 countries, including the USA, excluding unspecified restricted areas.

Coinmama Bonuses and Special Offers

Referrals: Join the exchange using our affiliate link and earn 15% commissions on purchases.

Loyalty program: Coinmama’s Loyalty Program rewards users based on their cumulative purchases. By reaching higher tiers, users can save up to 25% on fees.

Coinmama Background

Coinmama, founded in 2013, is a Canada-based cryptocurrency exchange and the consumer-focused arm of Wellfield Technologies, which acquired the company on May 27, 2022. Founded by Nimrod Gruber (COO, based in Israel), and Laurence Newman (co-founder and business coach in London), Coinmama now serves over three million customers across 190 countries.

With offices in Israel and Canada, Coinmama focuses on simplifying cryptocurrency purchases for beginners. After a 2019 data breach, it strengthened security and continues to serve a global user base with an emphasis on safety and ease of use.

Security and Transparency

Coinmama handles transactions through Paybis, which handles most fiat processing on the platform. Coinmama and Paybis are both non-custodial platforms that do not save users’ payment details for security reasons. KYC verification is required for all users following their first purchase.

Coinmama is not entirely decentralized and still collects data like your activity, personal and KYC info, messages, and device details (such as IP address and location). In 2019, a reported data breach exposed emails, usernames, and passwords of around 479,000 users.

The exchange doesn’t have some security features you’d find on other exchanges, like proof of reserves or a bug bounty. Still, in my opinion, they’re not as needed since they don’t hold crypto for users. The platform follows AML and other regulatory requirements to keep things compliant across its operating regions.

Cyber Security Measures: Coinmama features 2FA, which is enabled by default and sends a one-time code via email.

General Reliability: In my testing, Coinmama seems to be a straightforward and mostly reliable option for buying cryptocurrencies. However, it did face a data breach in 2019. My payments were sometimes declined randomly during testing but often worked on the second attempt. It lacks a bug bounty program and has limited customer support.

Corporate Communication Structure and Transparency: Coinmama shares information on its founders from its official website. The company is most active on Facebook with daily posts, which I found strange as it’s not typically a crypto-focused platform. It’s very active on LinkedIn, posting around three times per week, and less active on Instagram and Twitter (X).

Know-Your-Customer Procedure: Based on my experience testing Coinmama from the UK, its KYC process is on par with other exchanges regarding user-friendliness. While the crypto-swaps tool does not require KYC or account creation, logging in and completing KYC is mandatory for buying and selling cryptocurrency.

However, it has an interesting twist: you make your first crypto payment before completing KYC. During testing, I found that if you skip the KYC after paying, Coinmama will refund your money.

The KYC process itself is pretty standard. It asks for details like your address and ID proof (passport or driver’s license) and lets you switch to your phone for a photo if needed. It also includes a preference check that takes several face photos. Similar to most UK-compliant exchanges, Coinmama asks questions to confirm your understanding of crypto risks before allowing you to complete the transaction.

Is Coinmama Safe to Trade With?

Based on our findings, Coinmama has a high level of security, but its trust is more questionable. When using the exchange, remember the following factors:

• Although it experienced a security breach that was reported in 2019, no funds were lost.
• Financial authorities like the FCA regulate Coinmama.
• Its non-custodial model adds a layer of security, making traditional protections like deposit insurance unnecessary.
• It does not save your bank details for transactions.

Trading Experience

This review was conducted in the United Kingdom using the Google Chrome browser.

Trading Test

For our trading test, we thoroughly evaluated Coinmama. Our process included signing up, completing the KYC verification, logging in, and testing the platform. This comprehensive test allows us to provide an informed and reliable review of the exchange’s usability, features, and actual costs. Here’s our detailed analysis:

Step 1: Setting Up Your Account And Passing KYC

Signing up with Coinmama is straightforward: enter your email, create a password, and verify via a 2FA email code. After logging in, UK users must wait 24 hours before making a purchase, in line with the FCA’s “cool-off” period for crypto transactions.

The KYC process begins during the final steps of your first crypto purchase or sale. KYC was immediate after I submitted a clear photo of my government-issued ID, a separate selfie, and completed a brief FCA questionnaire.

Step 2: Buying Crypto and Transferring to Your Wallet

I chose to buy £100 of ETH directly to my ledger wallet.

My transaction was handled through Paybis, a third-party service integrated with Coinmama, and completed within a minute. The funds reached my Ledger account in just three minutes. The total fees amounted to 0.00519669 ETH (£12.68), which included both a network fee and Coinmama’s service fee.

Of this, Coinmama’s fee came to £11.37 or 11.39%, making it the most expensive exchange I’ve reviewed for buying crypto.

Step 3: Selling Crypto and Review

To complete my tests, I decided to sell some of the crypto I had just purchased. Selling via Coinmama proved to be a highly manual process, requiring users to send the crypto directly to Coinmama. The platform provided an address to copy and a QR code for mobile convenience to facilitate the transaction.

The minimum amount I could sell was £23.69 worth of ETH, but I actually had to send £31.02, which is significantly higher than the minimum sell requirements on most other exchanges. Additionally, only credit/debit cards and SWIFT payments were available for selling crypto, limiting the payment options.

I sent the deposit amount of 0.001267984 ETH to the address Coinmama provided.

Following this, the process was faster than I expected. After 5 minutes, the page updated, letting me know the transaction was complete. I checked my bank balance, and the cash was in my account.

Coinmama’s £5.69 fee for a small sale of just £23.69 felt excessively high for such a small amount, a 24.06% fee! I appreciate the concept behind Coinmama, but its high fees make it an exchange I wouldn’t personally use.

Desktop Version

Coinmama is a desktop-only platform offering a simple and intuitive interface that caters to crypto novices. It provides a straightforward way to buy and sell cryptocurrency using fiat, avoiding the complexities of spot, futures, or leveraged trading. During testing, I found the process efficient and the interface clear.

Buying

Coinmama’s payment system closely resembles Paybis, likely due to outsourcing some of its payment processing to them. It supports four fiat payment methods (Revolut, PayPal, SWIFT, and debit/credit cards), accommodating nearly 50 fiat currencies for making purchases, more extensive than centralized exchanges like HTX or KuCoin.

Selling

Unlike other exchanges, cashing out requires manually sending crypto to an address provided by Coinmama, and then receiving funds into your bank account.

Search Functionality

Coinmama’s crypto search feature is quite basic, consisting only of a simple search bar. Unlike platforms such as YouHodler or Gemini, which provide categorized listings of popular or different types of cryptocurrencies, Coinmama lacks this functionality. This is unfortunate, as discovery tools are valuable for crypto beginners to explore and identify the coins that best suit their needs.

Interface and Additional Features

I came across two additional tools: a Bitcoin calculator and a crypto swaps tool.

I tested the Bitcoin calculator and found its dropdown for other tokens non-functional. It only displayed Bitcoin’s current price and offered a button to buy crypto, which redirected to Coinmama’s main buy screen. This limited functionality was disappointing.

The crypto swaps tool supports 500 tokens — well beyond the 82 tokens available on the main exchange. It operates without requiring an account or KYC and is accessible regardless of geographical restrictions, so it was odd it was not accessible through the main navigation while logged in.

My Key Takeaways After Testing Coinmama

Coinmama is a functional platform for buying and selling cryptocurrency. However, it lacks features like a comprehensive crypto discovery tool, and some information is inaccessible from the main navigation.

In my opinion, Coinmama feels outdated and in need of modernization.

Fees

Coinmama is not a trading platform, so a comparison of its Maker/Taker model, as we typically conduct in our tests, is not applicable. However, the platform does apply various fees for buying or selling cryptocurrency.

Coinmama Deposit Fees

As Coinmama’s fee structure is unclear, I wanted to test the fees for each of the above payment methods with $1000. In my testing, I found Coinmama charged slightly more for buying crypto than selling it on all payment methods except SWIFT.

I was puzzled by the exceptionally high fees, far above the 3.9% commission advertised on their website.

Coinmama Withdrawal Fees

Its official website claims that it has a 0.9% withdrawal fee for Bitcoin. However, my testing also showed this to be false: the fee for a $1000 Litecoin withdrawal was 9.83% via Debit/Credit card and 14.31% through Swift.

Are Coinmama’s Fees Competitive?

Coinmama’s fees are far from competitive, as our testing revealed significant discrepancies between its advertised rates and actual charges. The lack of clarity in its fee structure contributes to its reputation as one of the most expensive and least user-friendly exchanges.

Cryptocurrencies Available on Coinmama

Deposits & Withdrawals

Coinmama Deposit Options

Coinmama offers an impressive range of deposit options in 44 fiat currencies that vary based on the region served. This stands out even among major platforms like Coinbase, which typically offer only two or three deposit methods per location.

Disclaimer: The above chart shows available deposit options for the top three currencies used. Other popular currencies, such as HKD, VND, and AUD, may differ.

Coinmama Withdrawal Methods

The options for cashing out on Coinmama are decent but limited compared to its deposit options. Withdrawals can only be made in GBP, USD, and EUR.

Customer Support

Coinmama supports a blog tutorial section. However, its recent articles serve as educational content on the wider crypto industry instead of tutorials on the platform itself.

Coinmama has an educational resource called Coinmama Academy, a database of blog articles set up to help newcomers understand crypto. Its content focuses on the basics of crypto, which I think is awesome to see a smaller exchange like Coinmama put effort into.

The platform also provides an FAQ section, but it is limited. As mentioned previously, it displays inaccurate information on fees, leading me to believe some of the content is outdated.

FAQ

Is Coinmama trustworthy?

Based on our research, Coinmama is considered relatively trustworthy due to its non-custodial nature, meaning it does not store users’ funds or crypto. While it experienced a data breach reported in 2019 that exposed some user credentials, no funds were lost.

Can US Citizens Use Coinmama?

Yes, Coinmama is available to US citizens in most states. However, regulatory requirements in certain states may restrict its use. Users are advised to check the platform’s availability in their specific location before signing up.

Has Coinmama ever been hacked?

Coinmama experienced a data breach made public in 2019, where emails, usernames, and hashed passwords of 479,000 users were leaked. No funds or sensitive payment information were affected, and the platform implemented stricter security measures following the incident. Its non-custodial model also reduces the risk of major hacks targeting stored funds.

Does Coinmama require KYC?

KYC is required for users after their first purchase on Coinmama. However, users can use its crypto swaps tool without undergoing KYC. The process involves standard steps like ID verification, a video selfie, and address proof.

Can I use leverage or margin trading on Coinmama?

No, Coinmama does not support leverage or margin trading. The platform is designed for simple buying, selling, and swapping of cryptocurrencies.

Is my money safe on Coinmama?

Coinmama’s non-custodial model ensures that users’ funds are never stored on the platform, reducing risks associated with exchange hacks. While this adds a layer of security, users are responsible for safeguarding their own wallets. The platform also features 2FA for account security.

Is Coinmama regulated?

Coinmama complies with KYC and AML regulations and operates in line with financial requirements in the regions it serves. While it is not regulated as a traditional trading platform, its adherence to these standards demonstrates its commitment to compliance.

Does Coinmama offer any bonuses, welcome offers, or referral rewards to its users?

Coinmama offers a loyalty program where users can save up to 25% on fees as they reach higher purchase tiers. Additionally, its referral program allows users to earn 15% commissions on purchases made by referred customers. Join the exchange using our affiliate link.