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 coins 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 price 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.
At the moment Coinmama supports buying only of the following coins:
- Bitcoin (BTC),
- Ethereum (ETH),
- Ripple (XRP),
- Litecoin (LTC),
- Bitcoin Cash (BCH),
- Cardano (ADA),
- Qtum (QTUM), and
- Ethereum Classic (ETC)
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.
August 2018 update – Coinmama has started accepting SEPA payments as well for EU residents for all cryptocurrency purcahses.