Coinmama: A Complete Guide to Cryptocurrency Purchase
Cryptocurrencies have revolutionized the way we perceive and transact money. They have opened doors to a plethora of opportunities that investors can potentially tap into.
But with so many cryptocurrency trading platforms in the market, how do you pick the best one for you? In this article, well delve into Coinmama, its offerings, fees, pros, and cons, how to use it, and the earning potential it offers.
Overview of Coinmama
What is Coinmama? Coinmama is a cryptocurrency exchange that allows users to buy and sell limited digital currencies like Bitcoin(BTC), Bitcoin Cash(BCH), Ethereum(ETH), and Litecoin(LTC).
The platform was launched in 2013 and has since positioned itself as one of the many options for cryptocurrency purchases.
Coinmama Offerings
Coinmama offers limited digital currencies, with Bitcoin being the most popular. Users can sell Bitcoin and withdraw fiat currency (USD, EUR) to their bank accounts.
Coinmama Fees
Transaction fees range from 0.9% to 5% of the transactions value, depending on the payment method. Credit/debit card purchases attract a processing fee of 5%, while SEPA bank transfers incur a fee between 0.5% to 2.5%.
SWIFT transfers attract an additional fee of 0.5%. Coinmama doesn’t charge a buy/sell fee, which is a big plus.
However, the platform charges higher fees to make up for the buy/sell fee reduction.
Pros and Cons of Coinmama
Coinmama has one of the simplest interfaces in the game. Its easy to use and intuitive, even for first-time users.
However, the platform offers very limited cryptocurrency options, and a native wallet isn’t available. Coinmama’s fees are some of the highest in the market, eating significantly into any realized profits.
Additionally, it is restricted in some states in the US.
Using Coinmama
Account Opening Process
To start using Coinmama, you will need to open an account by providing your identification document, a selfie and other details for verification. After verification, you can begin to buy and sell cryptocurrencies.
Coinmama Transactions
Transacting with Coinmama is easy. Users can buy/sell cryptocurrencies using fiat currency and transfer their purchases to an external wallet.
Coinmama uses the TradeBlock Bitcoin Price Index, which ensures transparency in pricing.
Coinmama Limitations
Coinmama offers no exchange or trading option. Instead, it only deals with purchases and sales.
The platform has a white glove service for high-net-worth individuals and businesses, but it’s limited and not accessible to all customers.
Earning Potential with Coinmama
Cryptocurrencies, in general, are seen as a speculative investment and are subject to price volatility. The potential returns can be tremendous, but difficult to predict.
Risk management strategies like stop-loss orders should be considered to mitigate losses.
Wrapping Up
Coinmama is an easy-to-use platform that allows traders to buy and sell limited cryptocurrencies. However, its high fees, limited options, and lack of trading capabilities could discourage investors.
On the other hand, its simplicity could appeal to new investors entering the market. Ultimately, Coinmama is an option for cryptocurrency purchases that you may consider in your portfolio.
3) Coinmama Verification
Cryptocurrency exchanges, like Coinmama, are required to follow Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. This means that users must provide personal information and undergo identity verification.
Coinmama has a straightforward verification process that includes an age limit, identity verification, and selfie requirements.
Required Verification
To use Coinmama, users must be at least 18 years old, the legal age for purchasing cryptocurrencies. The verification process includes providing a government-issued identity document such as a driver’s license or state-issued ID.
Users must also provide a clear and correctly formatted selfie with the document they provided. Additionally, Coinmama requires users to provide a written paper with the date, “Coinmama,” and their signature, held next to their face in the selfie.
This requirement ensures the security and authenticity of the transactions.
Wallet Requirements
Coinmama offers an exchange service and doesnt provide a native wallet for users to store their cryptocurrencies. This means users must have an external wallet to store their coins.
Coinmama supports a limited number of compatible cryptocurrencies such as BTC, BCH, ETH, LTC, ADA, and ETC, and users need to ensure their wallet can hold those currencies before making any purchases.
4) Alternatives to Coinmama
While Coinmama is a popular cryptocurrency exchange, there are other alternatives that traders might consider. Two such alternatives are
Kraken and
Coinbase.
Kraken
Kraken is a US-based cryptocurrency exchange that offers advanced trading features and a wide variety of cryptocurrencies. The platform allows users to trade 53 digital assets, including smaller altcoins that aren’t available on other exchanges.
Krakens fees are generally lower than Coinmama’s, with trading fees between 0.05 and 0.75%. However,
Kraken can be complicated to navigate for beginners, making it better suited for experienced traders.
Coinbase
Coinbase is one of the most popular exchanges globally, boasting over 56 million users. The platform is beginner-friendly and allows users to buy, sell, and store cryptocurrencies.
Coinbase offers both custodial and non-custodial wallets, allowing users to choose between the exchange holding their private keys or taking full control.
Coinbase supports 133 cryptocurrencies, making it one of the most versatile exchanges in terms of cryptocurrency offerings.
Similar to Coinmama,
Coinbase’s fees can be relatively high, with trading fees ranging between 1.49 to 3.99%.
In Conclusion
As cryptocurrency grows in popularity, more and more exchanges are emerging, offering users different interfaces, features and fees. Coinmama,
Kraken, and
Coinbase are just a small sample of exchanges in the market each with unique features.
While Coinmama may be suitable for some traders, it is vital to conduct thorough research before making any purchases. In conclusion, this article has covered essential information about Coinmama, including its offerings, fees, verification process, and wallet requirements.
The article also provided readers with alternative cryptocurrency exchanges like
Kraken and
Coinbase. Before making a purchase, it’s vital to research thoroughly and consider the various factors that differentiate these exchanges.
Cryptocurrency investment can potentially bring huge rewards, but it is also subject to risk, and users should only invest what they can afford to lose. Overall, it is essential to remain informed about the ever-evolving cryptocurrency and investment landscape.