Coinmama Review

High-fee crypto exchange for buying Bitcoin

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Coinmama

 Coinmama

overall rating
3.5

Our Take 

Coinmama is a small cryptocurrency exchange that allows users to sell Bitcoin for fiat currency. It offers a limited number of cryptocurrencies available for purchase, does not allow crypto-to-crypto trading, and charges high fees for buying and selling crypto. Coinmama may appeal to beginners as an easy way to buy crypto, but advanced traders seeking access to crypto trading, low fees, and a larger coin selection will want to look elsewhere.

  • Pros & Cons
  • Key Takeaways
  • Specifications
Pros & Cons
Pros
  • Can quickly purchase crypto with fiat currency

  • Access to Bitcoin, Ethereum, and other top crypto

  • Phone support available (callback only)

  • No fees for crypto deposits or withdrawals

Cons
  • Only 9 cryptocurrencies for purchase

  • High fees

  • Can only sell Bitcoin

  • Must connect third-party digital wallet to store coins

Key Takeaways
  • Coinmama is a centralized cryptocurrency exchange headquartered in Ramat Gan, Israel.
  • Coinmama is a web-based crypto platform with an Android-only mobile app available.
  • It does not allow users to trade crypto; only buy or sell.
  • Coinmama is available globally in 190 countries and in 48 U.S. states (not available in New York and Hawaii).
Specifications
  • Year Founded 2013
  • Official Website www.Coinmama.com
  • Cryptocurrencies Available 9
  • Customer Support Email, phone, live chat, social media

Introduction

Coinmama is a cryptocurrency exchange that offers a simple way to buy and sell a few popular cryptocurrencies online. It doesn't allow crypto-to-crypto trading, and it also outsources many of its transactions to a third-party service (Simplex). Coinmama currently only supports nine cryptocurrencies, which is fewer than most exchanges.

Coinmama users can buy Bitcoin and other popular cryptocurrencies using fiat currency. Users can also sell Bitcoin, but other cryptocurrencies must be withdrawn to a digital wallet to sell elsewhere. Coinmama is not a trading platform and does not offer some of the trading tools of other platforms, such as advanced charting, limit and stop orders, or trading on margin.

Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by The Balance or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed. 

Company Overview

Coinmama was founded by Ilan Schuster, Laurence Newman, and Nimrod Gruber in 2013 as a simple way to purchase Bitcoin. It now offers nine popular cryptocurrencies for purchase, as well as the ability to sell Bitcoin back to the exchange. It is currently headquartered in Ramat Gan, Israel.

Coinmama operates in most countries around the world (including 48 U.S. states), but it's not available in certain locations due to regulatory restrictions. Coinmama is not a traditional crypto exchange, as users cannot trade crypto or purchase crypto with trading pairs. Rather, it’s more of a marketplace where users can purchase crypto with fiat currency. That said, Coinmama does allow users to sell Bitcoin back to the exchange for fiat currency, but any other crypto will need to be transferred off the platform to sell.

Cryptocurrencies That Trade on Coinmama

Coinmama offers a very small selection of cryptocurrencies, including Bitcoin (BTC), Bitcoin Cash (BCS), Ethereum (ETH), and Dogecoin (DOGE). There are only nine supported cryptocurrencies on this platform, though they may add more in the future. Here is the complete list: 

Coinmama does not currently support some of the top cryptocurrencies, such as Solana (SOL), Polkadot (DOT), Avalanche (AVAX), or Tether (USDT).

Trading Experience

Coinmama offers a simple trading experience, as users can only buy crypto or sell Bitcoin. You can deposit funds into your Coinmama account using a wire transfer, ACH transfer, or you can deposit Bitcoin from your digital wallet into the Coinmama platform. Users can also purchase crypto in several other ways, including with Google or Apple Pay, or any Mastercard or Visa card.

Coinmama charges additional fees for using a debit or credit card to purchase, as well as Google and Apple Pay.

Users will need to connect a wallet address to store crypto, as Coinmama does not store any user assets on its platform. This may be a hassle to new users, as finding a compatible wallet for your desired crypto may be confusing. Coimama also does not offer advanced charting or limit or spot orders, so advanced traders may be underwhelmed at the trading features available.

Fees

Coinmama charges fees for buying and selling, plus additional fees depending on the payment method used. Coinmama fees are based on the TradeBlock XBX (a popular Bitcoin price index) list + 2% markup. In addition, Coinmama charges a fee for each transaction. These fees are much higher than most crypto exchanges.

Here’s a breakdown of Coinmama fees:

Payment Method Coinmama Fee
Bank Account 2% + up to 3.90%
USD Wallet  2% + up to 3.90% 
Debit/Credit Card  2% + up to 3.90% + 5% (10.90% total)
ACH Transfer  2% + up to 3.90% 
Wire Transfer  2% + up to 3.90% 
Crypto Conversion  N/A
Purchases  2% + up to 3.90%
Google/Apple Pay  2% + up to 3.90% + 5% (10.90% total) 
Bitcoin Sales  2% + up to 3.90% 

Security

Standard security features are available on Coinmama, including two-factor authentication (2FA) and encrypted servers. Coinmama also does not store any user crypto assets, and instead, it requires customers to use their own software or hardware wallets. This keeps assets in user custody instead of on a centralized platform.

Here are some details of the security features offered by Coinmama:

  • Two-factor authentication (2FA). Coinmama offers two-factor authentication (2FA) via third-party authentication apps (such as Google Authenticator.)
  • User custody. Coinmama does not store user coins, and it requires connecting a digital wallet for your purchases. This ensures all users can secure their crypto off the Coinmama platform.
  • Biometric access. The Coinmama mobile app (only on Android) allows users to enable biometric access (such as a fingerprint) to further secure the app.

Opening a Coinmama Account

To sign up for a Coinmama account, you will provide an email address and a password. After verifying your email address, you can log in and secure your account with 2FA. This requires scanning a QR code from Coinmama and inputting an expiring six-digit code from your authenticator app.

Before making any purchases (or withdrawals), Coinmama requires user identity verification. This includes providing your name, address, and other personal information, as well as submitting a picture of a government-issued photo ID. You will also need to submit a photo of yourself holding a piece of paper that says “Coinmama” on it. This aligns with modern Know Your Customer (KYC) standards of security in the U.S.

Customer Service

Coinmama offers customers service over the phone (callback only), via email, through live chat, or on social media. Users can call the voicemail service by dialing +1 (650) 600-9939 and leaving a message with a name and phone number. Coinmama customer service will call back to assist. Most crypto exchanges do not offer phone support, so this sets Coinmama apart from many of its competitors.

Users can also get basic support on Twitter. Overall, Coinmama offers more support options than most crypto exchanges.

Customer Satisfaction

Coinmama receives positive customer reviews overall, with users mentioning simple purchase experiences and helpful customer service interactions. Its few complaints call out the long verification approval time, as well as some accounts being deactivated due to identity verification issues (though users were able to withdraw funds with no issue). 

Overall, Coinmama receives better reviews than some competitors, and customer service seems to respond to complaints quickly.

There are no formal rating agencies for cryptocurrency exchanges so users will have to rely on customer reviews to gain insights into the platform experience.

Account Management

Coinmama allows users to buy and sell crypto through its web-based platform and Android mobile app. Users can log in, view crypto holdings, make purchases, and sell Bitcoin if desired. Coinmama does not offer to trade of crypto, and coins are held in a user’s third-party wallet, not on the Coinmama platform.

The Coinmama mobile app offers similar functionality, allowing users to buy crypto and sell Bitcoin. From the mobile app, users can also deposit or withdraw funds, view their holdings, and transfer funds as needed.

How Coinmama Compares to Other Cryptocurrency Companies

Coinmama is a simple marketplace that allows users to buy crypto, though its fees are higher than many other exchanges. It also offers a simple mobile app for managing user accounts and making purchases on the go.

Coinmama only offers nine cryptocurrencies and no crypto-to-crypto trading, limiting the functionality of the platform to simple purchases only. Users can only sell Bitcoin back to the platform as well; those who want to sell other coins will need to move them off Coinmama to sell elsewhere. Here’s how Coinmama compares to another large crypto exchange in the U.S.

Coinmama vs. Gemini

Both Coinmama and Gemini are cryptocurrency exchanges offering a simple way to buy Bitcoin. Both charge higher fees than certain competitors and allow users to purchase crypto directly with fiat currency. 

But while Coinmama is designed as a marketplace to purchase a few select cryptocurrencies, Gemini offers crypto-to-crypto trading capabilities, the ability to earn interest on holdings, and supports over 50 cryptocurrencies total.

Here are a few other differences between Coinmama and Gemini:

  • Gemini offers over 50 cryptos to buy and sell, while Coinmama only supports nine.
  • Coinmama does not store user crypto assets, requiring an offline wallet.
  • Gemini offers institutional investing services, including over-the-counter (OTC) trades.
  • Coinmama provides customer service over the phone, while Gemini does not.

Coinmama offers a simple way for beginners to buy a few popular cryptocurrencies, though its fees are very high. Gemini is a full-service crypto exchange, allowing users to buy, sell, trade, and stake crypto to earn interest. It also appeals to institutional investors with its OTC trade desk and 24/7 support team.

Final Verdict

Coinmama is a simple, centralized cryptocurrency exchange that offers an easy way to buy select crypto, but with high fees. Coinmama does not take custody of user assets, but instead, it requires that users connect a third-party digital wallet to obtain instant custody of their holdings.

Coinmama fees can be up to 10% of the purchase price, depending on the purchase method, which is higher than almost any other crypto exchange on the market. These markups can cost traders a large portion of their investment, and it is advised to shop around other crypto exchanges to find a better price.

Overall, Coinmama is a high-cost option for beginners who want to buy and hold Bitcoin or other popular crypto assets. Coinmama does offer superior customer service, and its mobile app and web-based platform make it easy to buy crypto. Coinmama may work for beginners, but active crypto traders will want to look elsewhere for more trading options.

Methodology 

The Balance is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels.


Exchanges were reviewed on points including security, fees, number of cryptocurrencies available, and more. We also considered if the exchange is regulated by a proper agency or entirely decentralized. Our full cryptocurrency exchange methodology, including the data collection and review processes and weighted data points, is available for review. 

Article Sources

The Balance requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. Coinmama. “Restricted countries and states.” Accessed Jan. 25, 2022.

  2. Coinmama. "Cryptocurrencies We Offer." Accessed Jan. 25, 2022.

  3. Coinmama. “Which virtual currencies are available to purchase?” Accessed Jan. 25, 2022.

  4. Coinmama. “Accepted payment methods.” Accessed Jan. 25, 2022.

  5. Coinmama. “What Are the Fees?” Accessed Jan. 25, 2022.

  6. FinCEN. “Information on Complying with the Customer Due Diligence (CDD) Final Rule.” Accessed Jan. 25, 2022.

  7. Coinmama. “Contact Us.” Accessed Jan. 25, 2022.

  8. Gemini. “Fees.” Accessed Jan. 25, 2022.