Introduction - Coinmama

​This platform is a cryptocurrency broker, specializing in the exchange of Bitcoin (and Ethereum). Created in Bratislava, Slovakia around April 2013 by Nimrod Gruber and Ilan Schuster, CoinMama's services are accessible to the highest number of countries as well as many U.S. states.

Nonetheless, sanctioned states and places such as Washington, Oregon, and others did not make the cut. The service offers the ability to purchase Bitcoins or Ethereum using a credit card or debit card, and cash is also an option (through Western Union).

The credit cards are accepted through a service called Simplex. While buyers can technically use Western Union for wire transfers, the most common method is by credit card.

CoinMama has a strong reputation given that it's one of the first Bitcoin brokers to be established. No other company can claim that it has been selling Bitcoin with credit and debit cards longer than CoinMama can.

While it's known as one of the oldest players in the game, CoinMama isn't entirely favorable for buyers. Fees to purchase Bitcoin with a credit or debit card are quite high, around 6%. This is likely the biggest drawback of the service, but given the accessibility and simple user experience, perhaps the fee investment is worth it.

For the first time, users or anyone purchasing bitcoin worth up to $150, an uploaded photo of your ID is not needed. However, spending over $150 will mean going through an extensive identity verifying process.

The recent influx of new users has overwhelmed the CoinMama customer service team, as many user's verification periods have been slowed down to accommodate volume. This has been a major source of conflict for the company, though its customer service works very hard to reply to each comment or complaint on public forums.

The verification period ranges depending on where the buyer is in the process of purchasing bitcoin. Initially, however, the verification process can be completed in under 10 minutes. Once verified, the purchased bitcoins are sent relatively quickly. It can, however, take hours until your Bitcoin assets are received.

For this process to run smoothly, the blockchain must first confirm your purchase, followed by confirmation from either your credit card issuer or, if you're using cash, Western Union. Confirming this transaction can take a few hours, but once CoinMama receives your confirmation of your Bitcoin wallet address, you are all set!

When it comes to safety, since your credit card information is not stored anywhere on the CoinMama site or its servers, you can rest assured that you're in control. CoinMama has an extensive verification process for those who want to purchase larger amounts of Bitcoin.

This is for the safety of both the user and the service. CoinMama has some of the top buying limits across brokers. The buyer can spend up to $5,000 of Bitcoin each day, and the monthly limit is $20,000 worth of Bitcoin.

A visit to the homepage will allow the user to select how many Bitcoins they'd like to purchase. There is an option to enter the desired amount of Bitcoins, which then corresponds to a value in USD. On the same page, there are packages to select from, including ones offering 0.2 Bitcoins, 0.5 Bitcoins, etc. As previously mentioned, there are limits to how much you can purchase if you aren't verified. Verification, of course, allows for a significantly larger transaction, whether daily or monthly.

After the user has been verified, the straightforward CoinMama interface allows them to easily purchase Bitcoins using your credit card. The fastest option is to pay using Visa or Mastercard, via the Simplex platform. If you are intent on skipping the verification process, you can always resort to using MoneyGram as a backup option. The MoneyGram option only applies to U.S. residents.

Once you enter your Bitcoin address and enter your payment information to place your order, Coinmama takes a premium fee. Hey, everyone's gotta make a living.

Below is a simple step-by-step guide to using the CoinMama service:

Prerequisite: Creating a Bitcoin Wallet:
In order to receive Bitcoins, you will need a Bitcoin address, which is like an email address for cryptocurrency exchange. The provider used to access your Bitcoin address is called a Bitcoin client. Upon entering your Bitcoin address and private key (which should be safely guarded), these credentials are stored in a Bitcoin wallet. You must be aware that CoinMama is NOT a wallet service, but rather helps send your Bitcoins to the digital wallet of your choosing. A wallet can be created for free via the Blockchain website.

Creating a CoinMama account is rather straightforward. You just select the type of cryptocurrency you'd like to purchase, go through the payment process, and be sure to provide your wallet address. Now, for a more in-depth guide on using the service:

You've created a digital wallet where you can store your Bitcoins. You're now ready to begin purchasing Bitcoin. The next step is to decide on the amount of Bitcoin you'd like to purchase. On CoinMama's homepage, there are pre-made packages to select from. You also have the option to choose your own amount using their calculator, which converts Bitcoin to USD and vice versa. The lowest amount you can spend on Bitcoin through CoinMama is $60.

Once the amount of Bitcoin is selected, you will have the option to pay either via Visa or Mastercard or Simplex; the other option is through MoneyGram. You will then be asked for your Bitcoin address and a wallet address confirmation.

The following payment page will require credit card information, which ties the whole process together. Keep in mind the Bitcoin purchasing restrictions if you are not verified; you will be subject to the $150 daily limit.

When comparing CoinMama to other platforms such as Coinbase, the difference is that Coinbase offers a wallet where you can store your funds and even sell them. Pretty significant, right? CoinMama does not provide the ability to sell or store your coins. Another important difference is that if you use CoinMama's service, you are restricted to purchasing either Bitcoin or Ethereum. 

Coinbase, on the other hand, allows you to buy or sell Litecoin and Bitcoin Cash in addition to Bitcoin and Ethereum. Coinbase also offers a mobile app, unlike CoinMama​​​​. Having a smartphone app can really change the game when it comes to making digital purchases. The fees on Coinbase are slightly lower, too. Finally, the methods for selling, depositing, withdrawing and buying cryptocurrency also differ between the two services. 

Coinbase offers the ability to sell and withdraw using PayPal, Bank Transfer or Cryptocurrency. CoinMama, however, limits your selling and withdrawing method to your credit card or debit card. As for buying and depositing methods, you are not limited to your credit card or debit card with Coinbase.

Similar to their selling and withdrawing methods, you can also use Bank Transfer and Cryptocurrency to make purchases. The only exception is that PayPal is not used for buying or depositing within Coinbase; only selling or withdrawing funds. I know that's a lot to digest.

For every purchase made, CoinMama charges a 5.5% transaction fee. An additional 5% fee is required if you are purchasing using a credit card (via Simplex).

It's important to be aware that certain banks and credit card issuers equate the purchase of Bitcoin with a cash advance, essentially allowing them to charge more fees to speed up the process. This fee, however, does not go to CoinMama. Always check beforehand whether your credit card adds additional fees for cash advances for the purchase of Bitcoin. You can always settle this with your bank to get your money back.

Though CoinMama limits the user to purchasing, other platforms such as Coinbase gives individuals more flexibility regarding assets traded. The variety of options across these digital platforms really paves the way for the next generation of cryptocurrency investors. 

Given that the rules are still being written, the novelty of Bitcoin opens up opportunities to advance our own knowledge of the intersection between tech and economics.

The modern-day digital currency could disrupt the market, and having it available to 217 countries across the globe makes for a diverse user base with unique ideas and strategies. Tracking the progression of cryptocurrency purchasing gives us a fascinating look into the investment possibilities within the advanced digital sector.

The introduction of Bitcoin to the United States has started a movement fueled by the desire for privacy and control over one's money. As this new way of exchanging value gains visibility, buyers can manage their own accounts, without the interference of government regulations. With growth almost as strong as currencies in Russia and Brazil (Rubles and Reals), this phenomenon is here to stay.
The fascinating outcome of this new Bitcoin wave is the incentive for investors to switch over to the cryptocurrency, which outperforms traditional methods of trading and investing such as stock market and foreign exchange trading. Many countries, however, are making it more difficult for people to trade using the new cryptocurrency, with a desire to regulate this virtual money.

There are two types of cryptocurrencies supported by CoinMama: Bitcoin and Ethereum. While CoinMama primarily focuses on Bitcoin, Ethereum is the second most popular cryptocurrency, and often the one more advanced investors prefer.

The personal details you provide to CoinMama, including any documents, will be encrypted. Your credit card information is not stored on CoinMama's servers or anywhere on the website. Neither are the coins, giving you control of the wallet to which you'd like to send your coins. Once again, CoinMama is NOT a wallet. Your wallet address (created on Blockchain.info/wallet/) is where your transactions will be sent. This address should begin with a 1 or 3, and consist of 26-35 characters that are alphanumeric.

Becoming a Bitcoin Affiliate through Coinmama has many perks. You can earn free Bitcoins for referring new buyers to its website. The affiliate receives a custom referral link, which can then be shared to refer new buyers to Coinmama. A 15% commission can be earned per purchase made by a buyer referred by the affiliate. There is also a coupon code offered to affiliates that can be used to refer new users to Coinmama. The limit for new buyers you can refer? It does not exist. You can expect to receive your commission every two weeks, but only after three successful purchases by three newly-referred users.

Becoming a Bitcoin Affiliate through Coinmama has many perks. You can earn free Bitcoins for referring new buyers to its website. The affiliate receives a custom referral link, which can then be shared to refer new buyers to Coinmama. A 15% commission can be earned per purchase made by a buyer referred by the affiliate. There is also a coupon code offered to affiliates that can be used to refer new users to Coinmama. The limit for new buyers you can refer? It does not exist. You can expect to receive your commission every two weeks, but only after three successful purchases by three newly-referred users.