US investors permitted
A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of Coinmama consists of four parts: general information, fees, deposit methods and security.
Coinmama is arguably an Israeli cryptocurrency exchange. The reason for saying arguably is that the holding company NBV International is registered at a street address in Bratislava, Slovakia. However, on the exchange’s site they display a registration with the US Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB). The registration is in the name of another company (New Bit Ventures Ltd.), with an address in Israel. The companies are most likely two branches of the same company.
In any event, the MSB registration permits CoinMama to accept US-investors as well.
Coinmama Trading fees
This particular cryptocurrency trading platform is more a cryptocurrency store than a cryptocurrency exchange. What you can do here is to buy Bitcoin or Ethereum from the exchange itself. You can’t sell any cryptocurrencies though. If you are more interested in the less known coins (ZCCoin, Ybcoin, Xpa Coin, SuperNET Coin, Trustnote Coin, or any coin with a similar market capitalization to those), you’ll have to look elsewhere.
The fees are 5.5% of the order value on the transactions, plus another 5% (or no less than $10) if you purchase your cryptos with credit card. The latter 5% does not however go to Coinmama, but to the credit card processor. SEPA-transfers are made free-of-charge, so if you purchase cryptocurrency here by way of a SEPA-transfer, your total fee will be 5.5%.
Coinmama Withdrawal fees
Considering how this exchange operates, withdrawal fees are irrelevant.
At Coinmama, you can deposit through both wire transfer and credit cards. This can be helpful especially for newer crypto investors.
One should generally look out for the different deposit fees charged by exchanges for deposit of fiat currencies. It might be indifferent to you whether you should deposit via wire transfer or credit card, but the fees can be very different fees. As mentioned above, if purchasing cryptos here via credit card, you will be charged 5% extra fees, whereas if you deposit via a SEPA-transfer there is apparently no processing fee.
Coinmama’s security score is F, when performing the test at Observatory by Mozilla (https://observatory.mozilla.org/). This is below industry average when it comes to top crypto exchanges.
If you have concluded that this is the exchange for you, congratulations! Go for it. But if not, please use our Exchange Finder here to find out which exchange has the best cryptocurrency exchange site for you.