Is Coin Mama Legit or a Scam?
In a sense, no, it is not legit. Cause, traders cannot sell their cryptocurrency through this platform. They only can store their coins. Also, there are very limited options for coin variety and they lack many features. Read our full Coin Mama review to know more details.
What is Coin Mama?
Coinmama is a basic cryptocurrency exchange that allows you to purchase and sell a limited selection of digital assets without providing a personal wallet. Since its founding in 2013, the exchange has provided services to more than three million clients worldwide.
The company in charge of this venture has its headquarters in Israel, although having locations in Canada and Ireland. Is the platform reliable, even though it is designed to meet the fundamental requirements of inexperienced cryptocurrency investors using wallets on other platforms?
Coinmama charges 5.5% for each transaction, plus an additional 5% (or at least $10) if a credit card is used to pay for the transaction. Additionally, our investigation showed that Coinmama’s selling Bitcoin price at the time this review was written was almost 10% higher than the daily average. This means that the store sells pricey, specialized goods.
Coin Mama Details
Unregulated Offshore Broker
Is This Company Safe?
Yes, but highly costly and limited features
Have Warnings from
Israel, Ireland, Canada
Free Demo Account
How to Withdraw from This Company?
You cannot sell crypto. Only buying. If you face any issues with them you can contact us.
Deposits and Withdrawals
Coinmama provided a list of widely accepted payment methods that users can use to fund their accounts and purchase cryptocurrency:
- Credit/debit cards;
- Bank transfers;
As previously stated, a minimum commitment of at least $50 is required. According to the company, personal information and details are saved in their system but not credit or debit card details.
Regarding costs, a commission fee ranging from 0.99% to 3.9% is assessed by the cryptocurrency platform based on the client’s level of loyalty. The later fee per purchase transaction will be borne by those in the Curious tier. Fans pay 3.41%, while Faithful pay 2.93%. There is a 0.9% fee on sales.
As they are a crypto trading platform, they don’t provide any account type. You can directly buy crypto and swap.
Red Flags and Warning Signs
The legal documentation on the website states that Cmama Ltd., an Irish business, is the platform’s operator. Both the company and its Canadian office, Cmama CA Inc., are managed by New Bit Ventures Ltd., an Israeli company.
The operators of Coinmama were not included in the registrations of the Canadian Investment Industry Regulatory Organization (IIROC) or the Irish Central Bank, which are in charge of overseeing the financial securities markets in their respective nations.
Coinmama encountered a significant problem in December of 2018. In February 2019, the company issued a statement claiming to have discovered proof of an unauthorized entity obtaining client data, including personal information.
However according to the statement, as of February 2019, there was evidence that the offenders had truly used the information against anyone. Who knows how the case turned out in 2023?
The key lesson to be learned from this is that the exchange lacks adequate security, primarily due to the lack of rules, thus you should proceed with caution.
Customer Complaints and Negative Reviews
There are several negative customer reviews on several platforms against this platform.
Coin Mama Alternative Brokers
If you want to trade crypto, you can choose several other alternative platforms. Here are some suggestions:
Got Scammed by Coin Mama? We Help Victims!
Due to its lack of regulation, we do not advise you to trade on this exchange. Although it can be challenging, recovering deposited money is achievable with expert assistance!
Make an appointment for a free consultation with Global Fraud Protection and tell us more about your situation if you were duped by the Coinmama scam and need assistance recovering your money. Together, we’ll examine it and devise a plan to get your hard-earned money back!