Coinbase and Coinmama
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.
Coinbase is one of the most popular cryptocurrency exchanges in the world, based in the U.S. and operating at varying capacities in 103 other countries including the likes of the U.K., Mexico, and Spain. A cryptocurrency exchange, as the name suggests, functions as a middleman in the crypto market, providing a platform for users to buy and sell different coins. Exchanges vary on factors ranging from the type of coins it trades, whether it allows for purchases with fiat money (USD, EUR, JPY), transaction fees, and processing times.
For those looking to purchase the most popular cryptocurrencies with fiat money, Coinbase remains one of the most secure and used options out there. It features an easy-to-use interface that makes it great for those looking to get into buying and trading cryptocurrencies for the first time. Processing times can be lengthy though, typically lasting between three to five days, another reason why this service caters more toward those looking into cryptocurrencies for the first time than those looking to make serious trades.
Like all custodial exchanges, which store millions of dollars worth of user’s crypto assets at any given time, Coinbase is a tempting target for hackers. But they have yet to suffer any significant hacks. They have implemented several important security measures. First of all, most funds are stored in offline encrypted wallets, and those wallets are distributed among several different places. For added security, two-factor authentication (2FA) is mandatory for all users. A few months ago, Coinbase reported that they had been targeted by hackers this past June, but the security team blocked the attempt without any crypto being stolen. Almost any Coinbase review you find will speak highly of their security.
Coinmama is a cryptocurrency exchange that was formed in 2013. Coinmama is registered in Slovakia but is owned by New Bit Ventures Limited that is headquartered in Israel. It operates in 188 countries worldwide, and is available in 24 US States. It provides users with a platform to purchase Bitcoin and Ethereum using credit and debit cards. However, Coinmama does not provide a platform for trading in cryptocurrencies nor does it allow users to sell cryptocurrency. Instead, all purchases of cryptocurrency by customers are transferred directly from the company’s own holdings, making transactions more secure than some of its competitors.
Coinmama stands out as one of the fastest and easiest ways to buy Bitcoin or Ethereum with a Credit or Debit card,and has now expanded to cover Litecoin, Cardano, QTUM, Ethereum Classic, Bitcoin Cash and Ripple XRP.
Is Coinmama Safe?
You might read a Coinmama review or two that state it’s not as safe as other cryptocurrency exchanges because it doesn’t allow for extra security features like 2-factor authentication (2FA) or e-mail authentication. While this was certainly true in the past, it is no longer the case. Currently, setting up 2FA is not only possible, but it’s actually mandatory. These and other measures make Coinmama just as safe as other crypto trading platforms.
Comparing the Features of Coinbase and Coinmama
Coinbase – currently the more reputable Bitcoin exchange accepts customers from 33 countries around the world.
Coinmama – Accepts buyers worldwide excluding some high risk countries. If you live in the US however, Coinmama is only available in these states: California, Colorado, Florida, Illinois, Indiana, Kansas, Massachusetts, Michigan, Montana, New Mexico, North Carolina, Pennsylvania, South Carolina, Tennessee and Texas.
Coinbase – In order to buy Bitcoins with you credit card at Coinbase you’ll need to:
Supply a photo id for verification
Verify two small charges made by Coinbase to your card
The photo id verification is an automated process and can be completed relatively quick, having said that some users are experiencing issues with it. Also the mini charges on your credit card may sometimes take a few days to show up on your
card balance. To sum it up, it doesn’t seem like you’ll be able to get your Bitcoins instantly if this is the first time you’re buying at Coinbase.
Coinmama – If you’re buying up to $150 worth of Bitcoins you don’t need to upload any documents for verification. You will however need to supply a physical address and verify your email address. So the process at Coinmama is much quicker and will take around 1 hour.
Coinbase – Depending on where you live Coinbase will charge a service fee (3.99%). This means that $150 are effectively only $144.15.
Coinmama – There is a 5% credit card processing fee that is charged by Simplex, the company handling the credit card transactions for Coinmama. This means that your $150 is effectively $142.5.
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.
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
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
There is validity and trust to both platforms when it comes to buying cryptocurrency. There will also be a larger fee if you are looking to buy with a credit card, but as I said that’s the price you pay for convenience.
Coinbase is a more rounded option once you have made your purchase and you can perfectly happily use them for all your major cryptocurrency dealings whether you are buying to hold or to use.
Coinmama does what it says on the tin. You can quickly and easily get hold of Bitcoin or Ethereum and send your funds off into your chosen wallet solution. This could be a better option if you are using a hard wallet rather than transferring in and out of Coinbase.