Coinmama was founded in 2013 and later acquired by Wellfield Technologies Inc. Company, a company that provides regulated financial and open public blockchain services, in March 2022 for $3 million.
Coinmama is headquartered in Dublin Ireland while Wellfield Technologies is a Canadian company.
In a nutshell, Coinmama simplifies the way people buy cryptocurrencies using fiat and sell their crypto holdings for fiat currencies.
In this Coinmama review, we shall look at how its platform works, its pros and cons, and why you should use Coinmama before giving a final verdict.
How it works
By taking a glance at their website, you will realize that their platform is extremely easy to use probably because their business is straightforward: allowing users to buy and sell cryptocurrencies.
You simply switch between “Buy’ and “Sell” on the white box to buy and sell cryptocurrencies respectively.
However, if you are a new client, you will require to first register for a Coinmama account and get verified to be allowed to go ahead with buying and selling cryptocurrencies on the platform. The verification process takes about an hour. There are however various levels each of which requires specific documents for verification. For level one verification, you will only be required to submit your personal information and upload your ID or passport.
Once you get a verified Coinmama account, you can then proceed select buy, insert the cryptocurrency that you want to buy and place the amount of fiat you want to use, and click buy. You will then be prompted to insert the wallet address you want your cryptocurrency to be deposited to and finally select the payment option you want to use to make the payment.
How long the buying process takes depends on the payment option that you choose to use. Wire transfers take about one to two business days to process payments after which it should then take an extra few minutes to seconds for the crypto transaction to be verified depending on the cryptocurrency you purchased (for example Bitcoin would take an extra 10 minutes).
You can track the status of your order under the “My Account” tab to see at what stage the process is at.
The selling process is almost similar with the only difference being that you switch to “Sell” choose the crypto and amount you want to sell, select your local fiat currency, and click on “sell” to follow the prompts to create your order. You are prompted to enter your bank country, account information, and personal details.
There is however a limit to the total amount of buys and sells that a person can do on Coinmama. Currently, it allows a maximum combined buy and sell transactions of up to 15000 USD a day when using bank transfers.
Pros and Cons of Coinmama
- Coinmama users can buy crypto using a wide range of fiat currencies via a wide range of payment options including Visa and MasterCard’s debit and credit cards, Apple Pay, and bank transfer.
- Users can sell their crypto holding and receive money in their bank accounts.
- When selling, users can sell even those cryptocurrencies they bought on other crypto exchanges.
- It is simple to use.
- It has a high spending limit that currently stands at a combined sell and buy transactions amounting to 15000 USD a day.
- The buying and selling process is fairly simple and users are guided throughout the process.
- Coinmama is non-custodial. It does not hold customer funds or store payment information. This ensures maximum security against hackers for its users.
- An average buy transaction takes about one hour for funds to reflect in the wallet address.
- You need to verify your account before buying any crypto on Coinmama and the verification process takes about an hour which is quite inconveniencing especially if you wanted to buy the cryptocurrency at its current price.
- Users can only receive payment for selling crypto into their bank accounts. It does not support other digital payment methods like PayPal and the like.
- It only allows the selling of cryptocurrencies in select countries.
Why should you use Coinmama?
The majority of crypto service providers only allow their customers to buy, send, receive, trade, and exchange cryptocurrencies without giving them an opportunity of converting the cryptocurrencies into fiat currencies. Most crypto users are forced to jump from one platform to another to be able to convert their crypto assets to fiat.
Coinmama on the other hand offers you the opportunity of buying cryptocurrencies using your local fiat currency and also allows you to sell your crypto holdings and receive money directly into your bank account in a quick and easy way without having to move out of the platform.
Besides, you don’t have to transfer your crypto assets to your Coinmama account for you to buy or sell cryptocurrencies, all that you need is to provide the public address of your crypto wallet. This not only saves you on transaction costs but also ensures security.
If you are looking for a platform where you can buy cryptocurrencies using fiat currencies and also sell your crypto holdings and receive money into your bank account, then Coinmama is a good choice.
The only thing you should be aware of is that you will require to complete an account verification for you to buy crypto on Coinmama. It also only allows users from a select market to sell cryptocurrencies.