Coinmama was founded in 2013 with the mission to make cryptocurrency purchases fast and easy for users. It became popular as one of the earliest platforms allowing bitcoin purchases using credit card. This may sound absurd but most platforms do not allow purchases using credit card as there is very high fraud rates with credit card purchases.
Coinmama currently supports the ability to buy cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ethereum Classic, XRP, QTUM and Cardano. Unlike other services, Coinmama does not have a built-in wallet. This means that if you wish to purchase from Coinmama, you should already have your own cryptocurrency wallet. Coinmama also does not have the ability for users to sell cryptocurrencies.
Due to the high risk of allowing users to buy cryptocurrencies using credit card, Coinmama charges a very high fee relative to other platforms. Coinmama charges a trading fee of 5.9% and an additional 5% payment processing fee. You can compare the fees from a few other platforms here.
To create a Coinmama account, you will need the following four items:
An Email Address
A Mobile Phone, Desktop or Tablet
Your Credit Card or Debit Card
Valid Identification (Passport/Driver's License)
Signing Up for a Coinmama Account
1. Click on the “Sign Up” button
2. Enter your email address, name, a strong password and your country of residence. Click on the “Create Account” button.
3. You will next see an instruction to check your email to confirm your account.
4. Open your inbox and click on the link in the email to verify your email address.
5. Yay! Your email has been confirmed. You can now proceed with the next step.
Verifying Your Identity
Now that you have got your Coinmama account created, you will need to verify your ID before you can buy bitcoin. This step is required by Coinmama to know their customers and prevent crimes such as money laundering, fraud, bribery and corruption.
1. To verify your account, click on the “Buy Bitcoin” button.
2. Fill up your personal information.
3. Upload your passport, driving license or a national ID card.
4. Next, take a selfie of you holding your ID and a paper with “Coinmama” and today’s date written on it. You must ensure that all of the text on the ID is clearly readable.
5. Coinmama will now review your ID and it may take up to 1 business day to complete this step. Once the verification process is completed, you will get notified via an email.
Let’s get started with buying bitcoin.
1. Insert your desired purchase amount then click on the “Buy Bitcoin” button.
2. Click on the “Credit/Debit Card” as a payment method.
3. Copy your bitcoin wallet address in the column and click on “Complete Payment”. If you don't already have a Bitcoin wallet, you may get a non-custodial wallet at blockchain.com.
3. Double check your Bitcoin wallet address and click on “Complete Payment” button. If your wallet address is wrong and Coinmama has sent the bitcoin over, there is zero recourse to undo the transaction as Bitcoin transactions are non-reversible.
4. Fill out your credit/debit card information below.
5. Your order is now being processed. You will receive another email asking you to confirm your bitcoin wallet address.
6. Voilà! Once your bitcoin wallet address is confirmed, your transaction will be shown in the Completed Orders section.
Conclusion: Easy, Fast and User-Friendly
As you can see from the guide above, Coinmama is pretty easy to use. It has a user-friendly interface and allows users to make transaction fast. It is definitely a good place for crypto beginners who wants to buy using credit card. However, do take note of the high transaction fee and the fact that you cannot sell cryptocurrencies on Coinmama.
You will also need your own wallet addresses for each cryptocurrency that you wish to purchase. Do remember to take note of wallet security and learn how to store your cryptocurrencies safely. We at CoinGecko recommend using a hardware wallet like Trezor, Ledger or Keepkey.
Kent is a freelance writer specialising in the equities market. He is also interested in blockchain technology and cryptocurrencies.