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

Last updated on August 25th, 2017 at 05:50 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. 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!

simplex logoOne 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 the fact that companies like Simplex have allowed exchanges and brokers to verify users with less risk, thus allowing the acceptance of credit cards.

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 Simplex in its system and allows you to pay with any Visa or Mastercard you might have.

Fees are lower thanks to credit cards

Since the process has become much more advanced, the fees are lower as well. Just so you’ll get a perspective: before the change to credit cards was made, one Bitcoin would cost you $310 when the corresponding Bitstamp rate was only $257. That’s a whooping 22 percent fee. Ouch!

After changes were implemented fees are around 6.5%. Now that may still sound like a lot, but if you look around at companies selling you Bitcoin with credit card as a payment method you’ll see that it’s basically the same fee everywhere. 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

What are inputs of a Bitcoin transaction?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, you can withdraw 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. Keep in mind that for first time users there is a limit on how much you can buy (at the time or writing this limit is $5000).

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 with the only downfall being its high fees. Unfortunately, this can’t be avoided when using a credit card at the moment.

On the other side, the long answer is “it depends”. If you have the option to use a different payment method other than a credit card then I’d avoid paying the high fees and go elsewhere.

All in all, the service is solid and hopefully will become more affordable in the near future. If you’ve had your own experience with Coinmama, I’d love to hear it in the comment section below.

Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.

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 (~7.5%)

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

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Joe
Guest
Member
Joe
Well I purchased btc from CoinGate/Simplex using a credit card and I am starting to regret. I thought it would be the “easiest way to buy btc with credit card” according to their website… So here’s the process, they ask for your wallet address, then, all you credit card info, then a selfie of you holding the credit card, then they withdraw funds, and ask for more info like upload of image of you DL, as I was doing this the site crashed, but they withdrew the $$ from my bank account. I got one email from simplex stating— basically… Read more »
Rob
Guest
Member
Rob

Can I buy Bitcoin from CoinMama and send it to Coinbase

Coinmama
Member
Member
Coinmama

Hi Rob,

Coinmama is not a wallet service, and this is why, when you place an order, you are asked to provide us your wallet address. We do not generate or provide wallets and have no connection to Blockchain.info or any other wallet provider – we simply send the coins to any wallet you choose.

Ray Latham
Guest
Member
Ray Latham

The thing I dont understand is how a program like this can operate in just about every country on planet earth BUT!!!!!!!!!!!!!!!!! they cant operate but in only certain states in the USA!!

I live in arkansas and cant use it.

SUCKS BIG TIME!!

appre your comments.

Coinmama
Member
Member
Coinmama

Hi Ray,

Good question! One of the unique things about the USA is that each state operates as its own entity, which (at least in legal terms) makes it like 52 separate countries. For example, Hawaii has effectively banned bitcoin, and in order to serve New York, exchanges need to buy a one-of-a-kind BitLicense. The list goes on, but this is basically why we can’t serve every state.

Having said that, we are constantly looking to add more states and Arkansas is definitely one of them. Hopefully, we’ll have good news to that end soon.

Matias Tschulnigg
Guest
Member
Matias Tschulnigg

When I put an order to buy BTC you deducted amount from Mastercard but showing as order is failed, I have submitted ticket but not hear anything from you. I have read a lot of problems with the platform and support. At least I request an answer that explain the error or situation to wait with some information.

Coinmama
Member
Member
Coinmama

Hi Matias,

Thanks for reaching out. I’m sorry that you’ve had to deal with this issue.
If you could please reply here with your failed order number, I’ll be happy to look into it for you :)

Matias Tschulnigg
Guest
Member
Matias Tschulnigg

I tried again and the same thing happened… The new Order ID is BBT29168990. Please help me.

Coinmama
Member
Member
Coinmama

Hi Matias,

We’ve sent you an email with additional information. Please reply there and we’ll be able to help get to the bottom of this.

Matias Tschulnigg
Guest
Member
Matias Tschulnigg

Hello, my failed order ID is BBT29024669. Waiting for your answer.

Coinmama
Member
Member
Coinmama

Hi Matias,

Thanks for providing your order ID. We’ve just sent you an email with more details. If you wouldn’t mind replying there, we’ll be happy to help get to the bottom of this.

Ishtiaq Hasham
Guest
Member
Ishtiaq Hasham

I’ve created my account on Coinmama few days back to purchase Ethereum. You cannot buy anything till you are verified by Coinmama. I submitted my documents for review and now its almost 5 days gone but I am still waiting for verification to do my first purchase. During this time Ethereum rise from 456 US Dollars to 615 US dollars. Coinmama Please do the needful to verify my documents at the earliest.

Coinmama
Member
Member
Coinmama

Hi Ishtiaq,

I’m sorry to hear. As advertised clearly on our website, we’re currently under heavy load (as are most other exchanges out there), which is causing slower response time for both support and verification. Rest assured, we’ll reach out to everyone as soon as we can, and our team is making daily sacrifices to provide the best possible service, given the circumstances.

Tom
Guest
Member
Tom
Coinmama! I don’t know if you’re still following this thread,but I am severely disappointed with your service! Two days ago I tried to make an order of aroind 1000 USD worth of Ethereum. It got approved by my bank,I confirmed my wallet through your confirmation email,and the order said it was “pending payment” or something like that. Then,the next morning,I wake up to an email that says “Order expired”. So I get on your website to check what’s wrong and the order has completely vanished from the list of orders. It wasn’t in “pending” nor in “failed” orders.. How can… Read more »
An interested customer
Guest
Member
An interested customer

Hi,

I tried to make a purchase of about 300 dollars and the order failed for bitcoin.

Please help!

BBT28606071 is my order number.

Thanks!

Coinmama
Member
Member
Coinmama

Hi there,

Thanks for providing your order number – We’ve just sent you an email with further direction. If you wouldn’t mind replying there, we’ll be able to help get to the bottom of your situation.

Ray
Guest
Member
Ray
Similar experience to some below. I joined recently and managed to make a couple of successful small trial purchases. However after that, despite being within my purchase limit and despite getting bank approval of the card purchase each time, every later purchase attempt was Failed at the very end of the process for around 13 attempts. I used two different cards on different banks. Support tell me that their Card Processor company is declining the cards, but security doesn’t allow them to say why!!! They didn’t say it was because of the current high load. So how can I address… Read more »
Ray
Guest
Member
Ray

Thanks for responding. I attach a list of all Fails. I tried paying in Euros and Dollars with two different cards from different banks in different countries. In each case I got an SMS approval confirmation from the banks.

The two successful purchases were BBT26470061 and BBT26297742

Your Support say it is your card payment processor failing them but I can assure you there is no valid reason in this world why they should!!! So if they have a reason I would like to know what it is.

coinmama fail list.PNG
Coinmama
Member
Member
Coinmama

Hi Ray,

Thanks for providing the screenshot – unfortunately I cannot disclose your account information on here. Although, if you check your email, you’ll find a response addressing all your orders.

Coinmama
Member
Member
Coinmama

Hi Ray,

Thanks for reaching out. I’m sorry that you’ve had to deal with this issue.
If you could please reply here with one of your failed order numbers, I’ll be happy to look into it for you :)

Ray
Guest
Member
Ray

Sorry, replied in the wrong place – see above

Laurent Gonzalez
Guest
Member
Laurent Gonzalez

OK so im new to this. IF i cant sell my bitcoins on here that i purchase, then what can i do with them? Can i transfer them or how does it work if i want to cash out eventually?

Steven Hay
Member
Member
Steven Hay

Hi Laurent,

Well, you can’t sell them here, 99Bitcoins doesn’t do exchanges.

You can sell bitcoins on any exchange though, or directly to an individual. Check out our Buying Guides section and Exchange Reviews page:

2018’s Best Bitcoin Exchanges – Bitcoin exchange comparison & review

All those exchanges work just as well for selling as buying. For individual sales, check out LocalBitcoins.com or the Bisq app.

Scott
Guest
Member
Scott
VeryFrustratedPotentialCustomer For the past two days, I have been trying to purchase Bitcoins from CoinMama. This has been one of the most frustrating experiences ever. They are declining my credit cards, although the transactions go through, Coimama then reverses the charges. I probably have tried close to 40 times. Below are some of my failed order tries. Customer support says it is because of their credit card processor, but like I said they are running the transactions through then reversing them. I have called all my credit cards multiple times and they let me know everything was fine on their… Read more »
Coinmama
Member
Member
Coinmama

Hi Scott,

I’m sorry for your frustrating experience. Thanks for supplying your order numbers – unfortunately we can’t disclose your account details here – although I just saw that our support team was in contact with you via email and provided all the necessary information. If you have any further questions regarding our correspondence, please reply there and we’ll be happy to help get to the bottom of this.

UnsatisfiedPotentialCustomer
Guest
Member
UnsatisfiedPotentialCustomer

Signed up with coinmama and already waiting 2 days for verification. A friend of mine signed after me and was approved in 5 minutes or so.
Her first transaction was approved and she was able to buy a small amount of bitcoin. After that her next 7 transactions were failed.
Of course, they don’t answer mails, of neither one of us (it’s been more than 24 hours after the mails).
Overall, bad service and non existing support. Would not recommend.

Coinmama
Member
Member
Coinmama

Hi there,

I’m sorry to hear. As advertised clearly on our website, we’re currently under heavy load (as are most other exchanges out there), which is causing slower response time for both support and verification. Rest assured, we’ll reach out to everyone as soon as we can, and our team is making daily sacrifices to provide the best possible service, given the circumstances.

In the meantime, if you could leave a reply with your order number of one of the failed orders, we’ll be happy to look into that for you.

UnsatisfiedPotentialCustomer
Guest
Member
UnsatisfiedPotentialCustomer

Hi,
Thank you for your reply.
There have been various orders. One order number is BBT27608195.

Coinmama
Member
Member
Coinmama

Thanks! We’ve sent you an email with additional information.

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