Coinmama guide: how does this exchange work?
Coinmama guide: how does this exchange work?
Crypto

Coinmama guide: how does this exchange work?

By Marco Cavicchioli - 24 May 2020

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Coinmama is a cryptocurrency exchange launched in 2013, but how does it work? 

First of all, it must be said that, according to official data, it has been chosen by over two million people in 188 countries around the world and allows to buy different cryptocurrencies as well as to sell bitcoin in exchange for different fiat currencies. 

The cryptocurrencies that can be bought are:

  • Bitcoin (BTC), 
  • Bitcoin Cash (BCH), 
  • Ether (ETH), 
  • Ethereum Classic (ETC), 
  • Ripple (XRP), 
  • Litecoin (LTC), 
  • EOS, 
  • Cardano (ADA), 
  • Tezos (XTZ),
  • Qtum.

As far as the sale of BTC is concerned, the fiat currencies that can be cashed in are US dollars (USD), Euros (EUR), British pounds (GBP), Japanese yen (JPY), Canadian dollars (CAD) and Australian dollars (AUD). 

Purchases can be made with different payment options, such as VISA or MasterCard, debit card or bank transfer, with high spending limits (up to $15,000) and quick identity verification. 

At the time of purchase, tokens are sent directly and immediately to the user’s wallet, making the purchase and collection process very fast. 

By requiring identity verification (KYC), the exchange can operate in full compliance with regulations. 

The particularity of Coinmama consists of not providing its users with a wallet integrated in the exchange, but in sending the tokens purchased directly to the user’s wallet. In this way, the exchange does not store the tokens of its customers, making it more secure. 

For this reason, it is mainly used to buy cryptocurrencies, and much less to sell. It is no coincidence that, as far as selling is concerned, it only supports Bitcoin and no other cryptocurrency

It must be said, however, that the company declares that it wants to add more cryptocurrencies in the future both for buying and, probably, for selling. 

The exchange is available worldwide, but its functionalities vary according to the user’s country of residence, for reasons related to different legislations. 

Identity verification is therefore essential, but only requires the uploading of a scan of an identity document and a selfie. 

However, the costs related to commissions on purchases and sales deserve special mention. Coinmama uses the calculated exchange rate of the TradeBlock XBX service +2% and applies a commission of up to 3.90% on purchases, and up to 0.9% on sales. In addition, a 5% commission is added to credit or debit card transactions. 

Coinmama also provides users with a bitcoin calculator to view in real-time the updated exchange rate that is applied on purchases. 

Finally, it must be said that the company is based in Bratislava, Slovakia, therefore in a country that is part of the European Union and the Eurozone. 

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 11 thousand subscribers.

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