Coinmama and Coinbase are the two most popular cryptocurrency exchanges of the last four years. These exchanges allow users to purchase digital assets like Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. In this review, we look at both platforms in-depth to help answer any questions regarding usability, cost-effectiveness and overall performance in today’s busy cryptocurrency trading world.
On Coinmama, users can buy Bitcoin and Ethereum and they do not provide either storage or selling options. Coinbase includes a wallet that helps users to keep funds and to sell said funds whenever required. Both Coinmama and Coinbase offer efficient and safe services to customers across the globe. These exchanges are extensively known for facilitating the purchase of a digital asset with debit and credit cards.
Coinmama vs. Coinbase: Quick Overview
|Site type||Easy buy/ sell methods||Easy buy method|
|Available worldwide||33 countries||Most countries|
|Verification||ID, credit charges||Not required|
|Exchange rate||Fair||Very high|
|Site||Visit coinbase||Visit coinmama|
Verification Process: Coinmama vs Coinbase
At Coinbase, users can purchase digital assets up to $500 weekly, while, Coinmama enables buying up to $150 and requires a proof of place of residence for verification. As soon as verification is completed, the limit to purchase crypto coins increases up to $30,000 with Coinmama.
To buy Bitcoins with a credit card at Coinbase, users need to submit the following documents:
- A photo ID – The three modes of identity verification are allowed, these include – passport, driver’s license, or photo ID. This automated photo ID verification process is completed quickly and as soon as the user uploads the documents into Coinbase.
- Verify two small charges made by Coinbase to your card – These mini charges on credit card made by Coinbase is reflected on credit card balance only after few days.
Eventually, if the customer is purchasing Bitcoins on Coinbase for the first time, they may not be able to get Bitcoins instantly.
The registration process at Coinmama is simple and this process includes submitting the photos of the front and back sides of an ID document. Users must provide all the details including email address, name, gender, date of birth, and country of residence while signing the verification form.
Before an account is activated, the documents shall be verified, which takes anywhere from instantly, up to a few hours, or even a day. Also, to avoid cancellation of registration, users must ensure that the ID photos are of high resolution and good quality. Once verified, users can buy Bitcoins or Ether worth up to $50,000.
Coinbase – Depending on the place of residence, users are charged a service fee of 3.99%. So for example; $150 after the service fee is taken away leaves the user with $144.15.
Coinmama – Buyers using a credit card to purchase cryptocurrency are charged a 5% processing fee. In this case, $150 will be only $142.5.
Both Coinbase and Coinmama offer the best exchange rates and this is probably where individuals will opt for one over the other.
The exchange rate on Coinbase is $8,072 for 1 BTC, while, Coinmama offers $8,516, which is 5.5% more. Additionally, with $150, Coinbase and Coinmama will provide 0.01858276 BTC and 0.0176139 BTC respectively.
Safe and Secure
With security being a key concern for any organization or online platform, Coinbase offers industry-leading security services, while Coinmama limits its services.
Coinbase offers an easy-to-use service alongside the highest level of security, which includes offline storage and two-factor authentification ensuring an account cannot be accessed with only the regular password.
Coinmama’s security methods are not very stringent as users will not be storing funds in an online exchange wallet. However, they use Trust Guard and Comodo security professionals who assure that 256-Bit SSL encryption method is actively implemented on pages that have confidential information. As Coinmama does not offer two-factor authentification, users must choose a robust password to protect their accounts.
Both Coinmama and Coinbase provide good customer support, still, they have received many complaints regarding it. Customer support in many industries is still an overlooked issue; as a result, many customers are unable to resolve several issues.
Customers can contact these companies via email and they respond within 3 days based on the type of query. Sometimes, the response can be canned and may not have any reference to the specific issue.
However, these websites provide introduction guides that are informative on how to purchase coins via their respective platforms and a generic support center that can provide answers to most of the queries.
Coinbase – Currently, the highly reputable Bitcoin exchange accepts customers from 33 countries around the world.
Coinmama – If the user is residing in the US, Coinmama is available only in the following states: Arizona, California, Colorado, Florida, Illinois, Indiana, Kansas, Massachusetts, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Missouri, Montana, Nevada, New Mexico, Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, and Texas, Virginia and Wisconsin. Additionally, Coinmama excludes some high-risk countries.
Pros & Cons of Coinbase
- Being one of the world’s most reputable cryptocurrency exchanges, Coinbase offers high liquidity
- Enables access to and purchasing of the best digital assets on the market, including Bitcoin and Ethereum
- Instant “buy” feature
- Easy to use platform suitable for beginners
- Offers insured Bitcoin deposits
- 65 million monthly visits, of which 45% of visits are from the US
- Limits payment options on credit/debit cards
- Monitors all accounts
- Delay in customer support and verification due to an influx of new users
- Customer service has received a varied response
Pros & Cons of Coinmama
- Accepts credit and debit cards from all countries
- Live pricing in US dollars and euros
- Delivers within minutes after an order is placed
- Offers the ability to buy fractions of a bitcoin
- Holds no funds on its platforms (Less risky)
- Offers a high daily buying limit
- No ability to sell Bitcoin via Coinmama, a user can only buy
- Does not accept Wire, PayPal, American Express or Discover
- Can’t link to your bank account to expedite new purchases
- Expensive compared to other exchanges
After reviewing strengths and weaknesses of both the exchanges, Coinmama could be the better option simply for its quick transaction times and better customer support. Also, it can be considered less risky as there is no wallet storage built into the exchange. Coinbase, on the other hand, is good for beginners and is very popular. However, reports have surfaced claiming that funds withdrawn from the exchange may be tracked after. This is something many users would feel impinges on privacy and could be a big deciding factor when moving forward with your cryptocurrency trading.
Featured Image: twitter