It is a platform owned by “New Bit Ventures Ltd”, an Israeli company, managed by “NBV International s.r.o.”, based in Bratislava, Slovakia. This service has been improving over the years since its creation to provide the user with a comfortable experience and an easy way to buy Bitcoin and Ethereum with a credit card; all under a pleasant and safe environment.
The company began operations in 2013, providing the opportunity to buy Bitcoin and Ethereum with Fiat currency. Today, it has seen significant growth in its operations, extending its services to more countries and expanding its offer to other cryptocurrencies.
It is also important to note that Coinmama works as a platform to buy cryptocurrencies, they do NOT have the option to sell them. Likewise, cryptocurrency purchase operations are made directly between the user and Coinmama, the portal does not leave spaces for a P2P market among users.
Another fundamental aspect that we must include is that the portal does not provide any type of wallet or space for the storage of cryptocurrencies purchased in the system. When buying cryptocurrencies, users must already have a wallet and provide the public address of the purse where they want the acquired cryptocurrencies to be sent.
How safe is Coinmama?
Thanks to the fact that Coinmama does not protect any type of cryptoactive within its platform, we can say that the requirements are lower compared to the security that other exchanges maintain.
The only information that could be “sensitive” or susceptible to theft, would be the information of the credit or debit cards that customers use to buy their cryptocurrencies within the portal, however, the developers ensure that this financial information is not stored in no platform online server.
When it comes to security incidents of Coinmama, we must mention that one suffered a while ago. According to a statement, the platform was informed that a total of 450,000 email addresses of users and their passwords to access the portal were published in a Deep Web registry. This information was from users who had registered before August 15, 2017 within the platform.
So far, in Coinmama, they claim that the perpetrators of data theft have not taken any action with this information. However, the company initiated a procedure for resetting passwords and notifying affected users to report what happened and facilitate them to take action.
The offer to buy cryptocurrencies in Coinmama is a bit limited, we can only buy Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, Qtum, Ethereum Classic and Cardano. Similarly, developers say they are looking to include more cryptocurrencies in their purchase offer for the near future.
How to buy?
To proceed to buy on this platform, it is first necessary to register as users within the portal. Registration is very easy and you will only be asked for an email, a password, our first and last name and the country in which we reside. It is important that we provide REAL data of our identity since Coinmama has a KYC procedure that must be followed in order to buy with them.
The verification process will depend on the level you want to reach as a user. If you want to stay in the first level that only allows a maximum purchase of 15 thousand dollars or its equivalent in other currencies, you must provide only a photo of an official identification that matches the data provided above.
In the event that you want to reach level 2 verification to operate with up to 50 thousand dollars or its equivalent, you must provide 2 official IDs as well as a personal photo of the user holding the identification.
The last level is the third level and the same allows the user to manage up to 1 million dollars within Coinmama. To reach this level, an interview with Coinmama staff must be completed, in addition to complying with the steps established in level 2.
Once we have completed the verification process within the platform, we can proceed to buy the cryptocurrencies within Coinmama. To be able to buy within the platform, they allow us to put the amount both in the cryptocurrencies that we want to buy or in USD/Euros.
Then, we will be redirected to another page where the platform will ask us to indicate the wallet address we want the cryptocurrencies to reach.
Finally, we will arrive at the page where we must enter the respective financial information to make the payment for the operation. Although the operations are reflected in USD and Euros, Coinmama accepts payments from 188 countries and their local currencies through the currency conversion services offered by banks and credit / debit cards. This must be taken into account to remember that banks charge a fee for the currency exchange and that it will be charged on the operation.
When the payment process is completed, the cryptocurrencies will be sent to the wallet that the user has provided. The time that this last step may take will not depend on Coinmama since it will depend on how congested the specific Cryptocurrency Blockchain network is.
Coinmama’s commission to buy cryptocurrencies is one of the highest in the market, compared to other offers that exist to buy such as Coinbase or Binance. The flat rate that apply to all purchases is located at 5.90% and includes it directly on the price of the cryptocurrency that you want to acquire.
The platform notifies that when you want to buy with a debit or credit card the payment processor recharges an additional 5% on the total amount of the operation.
The platform is ideal for those users who are starting in the world of cryptocurrencies since it is very intuitive and easy to use. The platform is built to ensure that anyone can understand the entire process of buying digital assets. In addition, its level of operability generates security for those users who do not know about cybersecurity.