Coinmama Review explained by professional Forex trading experts the “ForexSQ” FX trading team.
Coinmama is a cryptocurrency exchange where clients can buy Bitcoin or Ethereum from the exchange itself. This can be done either with credit or debit card, or with cash.
There is no option to sell those cryptocurrencies, so we’d say Coinmama is rather like a cryptocurrency store, and with very limited merchandise. On top of that, Coinmama charges 5.5% on the transactions, plus another 5% (or no less than $10) if the amount is paid with credit card. Our check revealed also that the selling Bitcoin price offered by Coinmama at the time of writing this review is about 10% higher than the average for the day. This makes it a store with limited but expensive merchandise.
Coinmama has a policy to prevent money laundering and requires that clients verify themselves. This can be done with a government issued ID.
Like some of the cryptocurrency exchanges, Coinmama does not offer leveraged trading either.
If you want to engage in trading in cryptocurrencies on margin, there are some, like Kraken, who offer a leverage of 1:5. Or, there is the option for leveraged trading on cryptocurrency CFDs offered by an ever expanding list of “traditional” forex and CFD brokers like FXTM, IG, HYCM, easyMarkets (started offering those instruments only recently), FxChoice, Grand Capital, etc. There is also the social trading broker eToro that offers crypto investment funds.
The Company. Security of Funds
NBV International provides a street address in Bratislava, Slovakia. On the other hand, on its site the company displays a registration with the US Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB), but it is in the name of New Bit Ventures Ltd., with an address in Israel. The brand name Coinmama, however, is the same, so we suppose those are two branches of the same company. The MSB registration allows Coinmama to operate in most US states and some territories. Otherwise, it appears that Coinmama accepts clients globally.
Unlike other cryptocurrency exchanges like Coinroom and Bitbay, for example, Coinmama does not offer its own digital currency wallet and hence, no money transferring or bill payment services.
We did not find information where and how does the exchange store the digital currencies, but considering that it does not provide an e-wallet, but sends the purchased Bitcoins and Ethers to the client’s connected e-wallet, probably the information is not relevant. On the other hand, Coinmama says it does not receive any data on clients’ credit cards.
The term “trading platform” is not applicable in the case of Coinmama. There is a fairly simple web interface where one can either select a predetermined amount of Bitcoins or Ethereums, or use a slider below to select another sum or type in the figure in a box. Then the platform automatically calculates the total price.
There is also information for order history, like current, past, pending and refunded orders.
Considering that Coinmama provides only the option to buy cryptocurrencies, provides all the necessary features and is very user friendly. There is no need neither for analysis tools, nor for charts, although a chart with the price movements of Bitcoin and Ethereum would have been nice to have.
Methods of payment
Coinmama accepts payments with credit and debit cards, with a hefty fee of 5% or at least $10, or in cash paid through Western Union. Considering that Western Union’s fees are not very small either, the service is actually quite expensive and it is a small consolation that Coinmama accepts payments in all currencies. It says they will be converted into USD or EUR and we suspect there may be some hidden fee in the conversion rates, too.
When compared to other cryptocurrency exchanges, Coinmama has very limited features. It only sells two types of tokens: Bitcoin and Ethereum and there is no option for clients to sell tokens themselves. Also, the exchange does not offer its own electronic wallet and does not accept deposits in cryptocurrencies. The only funding means are credit and debit cards and cash via Western Union. As we already said, those payment options come with high fees. On top of all this, Coinmama charges a hefty 10.5% commission on all sales and sells the Bitcoin and Ethereum at a higher than the average price.
Perhaps the only two good things about Coinmama is that it has a license to offer its services in most US states and accepts deposits in all currencies (converted into EUR or USD).
Coinmama Review Conclusion
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