Review: Coinmama – Is it 100% legit? (Reddit users speak out)

Last updated on May 10th, 2018 at 03:24 pm

One of the first services I’ve ever reviewed on 99Bitcoins, back in January 2014, was Coinmama. What was special about it back then is that it allowed you to buy Bitcoins with Western Union and was one of the first platforms to ever allow buying bitcoin with credit card. Recently I’ve decided to revisit the site an saw that a lot has changed for Coinmama, so you can call this a renewed review of the service.

Goodbye, Western Union. Hello, credit cards!

One of the major changes in the Bitcoin industry throughout 2014 is how easy it has become to buy Bitcoins with a credit card. This is mainly due to growing openness credit card processors are showing to the industry.

This is a much-welcomed change since without this you’d be bound to the old methods of actually going to your local Western Union counter and depositing money. Coinmama integrates a few card processers in its system and allows you to pay with any Visa or Mastercard you might have.

After changes were implemented fees are around 5.5%. Now that may still sound like a lot, but if you look around at companies selling you Bitcoin with a credit card as a payment method you’ll see that it’s basically the same fee everywhere, or even higher in some cases. This is due to expensive measures these companies have to deploy in order to avoid fraud and chargebacks.

“We’re aware that the current commission can be considered pretty high to the average customer and we’re constantly looking for ways to lower it in order to give our customers more value for their money.”

Nimi, Coinmama’s CEO

You get your Bitcoins instantly, of course

Last thing that gets dramatically improved is the speed at which you get your coins. In the past you’d have to wait for a wire confirmation to arrive from Western Union. Today, as soon as your payment has cleared, coinmama sends you your coins, which is completely awesome.

This is crucial since sometimes a day or two can mean wide price fluctuations in Bitcoin and you end up buying coins for more or less than you intended. It is also worth mentioning that Coinmama “locks” the Bitcoin price for you as soon as you create your order.

What does the Reddit community think of CoinMama?

As always I make sure to cross-reference my review with Bitcoin’s subreddit and the Bitcointalk forum. I’ve been looking around the web to try and find other reviews of Coinmama, but all I found on Reddit was this thread, which has several users saying they are happy with the site.

Going through Bitcointalk I couldn’t find any more useful information, except for one post stating that the site is not that well-known and another one stating it has high fees (this was before the change to a lower fee structure).

Hands-on tutorial: How it’s actually done…

If you’re considering using Coinmama, I made a short screen capture of the whole process to help you out.

Conclusion – Would I use Coinmama?

The short answer is yes. It is a reputable company, their support is pretty good. The only downfall is the high fees. Unfortunately, this can’t be avoided when using a credit card at the moment.

The long answer is “it depends”. If you have the option to use a different payment method other than a credit card and you don’t mind waiting a few days then I’d avoid paying the high fees and go elsewhere.

All in all, the service is solid. If you’ve had your own experience with Coinmama, I’d love to hear it in the comment section below.

March 2018 update – December’s peek led to delays of verifications and processing of orders. Coinmama has been working on upgrading their infrastructures to withstand higher volumes and the waiting times, both for verifications and processing of orders, are back to instant. As always I suggest reading the comment section to get an idea of what issues may arise before making a decision.

Coinmama

Coinmama
8.6

Price tag

7.5 /10

Ease of use

9.1 /10

Support

9.0 /10

Reputation

8.3 /10

Security

8.9 /10

Pros

  • Great user interface
  • Secure transactions
  • Fast delivery
  • Good support

Cons

  • High fees (~5.5%)

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219 Comments

  1. Trey A Morris on

    You know what sucks? Being a customer who spent thousands in your site, was suddenly UNVERIFIED and after providing documents told to, “find somewhere else to buy.” I spent thousands over months, and suddenly I’m told to find somewhere else to buy?

    It’s this lack of empathy and respect that coinmama showed me that reminds me why more people don’t think of cryptocurrencies (and related companies) as being legitimate. It’s the horrible customer service, bullying, rude, and uapologetic attitude towards customers that is holding cryptos back.

    Companies like coinmama seem to think customers are short-term exploitable, disposable, replacable gains for them to take advantage of. At least you’ve prevented me from giving you any more of my money. Sad that that’s the only nice thing your company has EVER done for me.

    • Hi Miguel,

      To repeat what we mentioned multiple times in response to the 30 emails you sent us: we manually confirmed your wallet at your exact request. By the time you told us about your mistake in providing the wrong address, the coins had already been sent. All of this is in writing, can be confirmed by going to your inbox, and is not a question of interpretation.

      We’re really sorry you lost the coins. It’s not always easy to navigate the world of crypto – we get that (perhaps more than most). However, while your frustration is understood (and shared by many of us), I’m not sure what you hope to achieve by spreading false information about our service. Coinmama has sold cryptocurrencies since 2013 and has a long-standing reputation as an honest and transparent service.

      If you’re willing to put down the torch and accept what happened, know that we care more about our customers than most, and would be happy to find a way to help compensate you for your loss.

  2. I think it is not safe. After two purchases at Coinmama, my card was charged with purchases from other sites. I think it does not have secure transactions. I won’t use it again. In addition, I wrote an email about this and they even bothered to check. I DONT RECOMMEND IT

    • Hi Miriam,

      Here at Coinmama (and unlike most exchanges) we don’t actually store any credit card details, and subject to our PCI compliance, our employees only see the last 4 digits to help troubleshoot and provide support. I’m really sorry if your card details were stolen, but it did not happen through our site, as we don’t have those details.

      Regardless, I strongly encourage you to report this incident to your bank. If they find that your details have been used by a fraudster, they’ll close the card and should issue you a full refund.

      We provided a more elaborate answer by email. If you have any questions or further concerns, feel free to reply there and we’ll get back to you.

  3. coinmama is way too slow. i have been waiting this long just to get myself registered since december 2017. forget even making purchases. even if you mail them, they never reply. anyway i closed my account today. thanks for nothing.

    • Hi there,

      We’re sorry to hear that you got caught up in the December whirlwind, and that it’s taken so long to get you verified. I’m happy to say that we’ve learned from this and that most emails are now answered within the hour, 24/7.

      We’ve also added live chat since then, so if you have any questions or comments, send us a note anytime and we’ll get right on it :)

  4. I am not interested in waiting weeks for my transaction to process if that is the case. I was verifed to purchased up to 5k, I made the purchase and the order has been “pending” all day today. Do I need to cancel or should I wait and if I do another transaction is this typical. Is there a vendor that does not take this long? Here is my order ID BBT36536072

    • Steven Hay on

      Hi Bill,

      I don’t think it will take weeks for your transaction to process. I suggest waiting, at least as long as it takes for Coinmama to reply to your support ticket. I trust that you’ve opened one of those? That will likely get a faster response to your specific query than commenting here.

  5. Hello Coinmama, I have used your site successfully for a while – I have a question about verification Level 2 (specifically government issued ID). I already submitted my drivers license for Level 1 and my country doesn’t issue a ‘National ID’ card, so that leaves only my passport. I don’t like sending a copy of my passport due to identity theft concerns (anything can happen with sites getting hacked). Would it be acceptable to black-out my passport number at least? Please let me know if that would be accepted by your KYC team. Thank you.

    • Hi Nic,

      Thanks for reaching out. We definitely understand your reservations. If it seems like we’re being overly strict, it’s because it helps us guarantee the safest and most reliable service possible. Our verification process requires customer’s to upload full unedited versions of their ID.

      To read more about Coinmama’s verification levels, please find attached a link to an article below which should help shed some light.

      https://support.coinmama.com/hc/en-us/articles/211854805-Verification-levels

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