Coinbase vs Coinmama Comparison
Coinbase and Coinmama are two of the quickest and most popular ways to purchase cryptocurrency. In this Coinbase vs. Coinmama review, we’ll go over everything from the key features of each platform, how those features compare, and ultimately which one suits your needs.
Comparing the Features of Coinbase and Coinmama
If you’re trying to decide on whether to use Coinbase or Coinmama, you’re most likely dipping your toe into the world of cryptocurrencies to see what all the fuss is about. If you’ve been doing a bit of research, then Coinbase will probably come up as a regular option to buy Bitcoin. This is because Coinbase is very beginner-friendly, and Coinbase has become a leader in the cryptocurrency exchange space. However, Coinmama may also stand out as a quick and simple option with few complications.
So what is the real difference between the two? Is it just price or is there something more to it?
Both companies really do provide easy cryptocurrency buy options that are almost instantaneous. With a quick account setup and no verification, you can buy Bitcoin and Ethereum in low amounts on a credit card.
For larger buys, you will need to go through standard verification checks with both platforms. These are pretty usual in the industry and are done electronically with a form a photo ID.
The big differences you will notice come when comparing the rest of the features offered
Coinmama very much presents itself as a quick buy option, but they only allow you to buy digital currency via credit or debit card. This means that once you acquire Bitcoin or Ethereum, there is not much else you can do on the Coinmama site. You can’t sell or trade through Coinmama, and there are also no wallet facilities provided. This means you will have to choose a secure storage method elsewhere before buying your cryptocurrency.
With Coinmama you simply pay with your payment method of choice and they send funds to your wallet. You might be thinking, ‘ok great what more do you need?’ Well, maybe not a lot but if you are looking for a more rounded platform, then Coinbase could be a better fit.
To start with, Coinbase provides a greater selection of buy options. Along with credit card, you can make a bank transfer into your Coinbase account. This balances the options available between convenient speed or lower fees. Secure wallet services complement these buy options so you can purchase and store your funds in a single Coinbase account.
Another string to the Coinbase bow is the ability to sell cryptocurrency back through the site, which is a beginner friendly way to trade or ‘cash out’ your funds. Of course, you need to be aware that they are effectively a currency exchange at this point so the rates won’t be as favorable as the open market price.
On the face of it, Coinbase might look a bit more daunting and complicated but they do offer a full cryptocurrency solution compared to Coinmama. Coinmama give you a quick buy solution that might work for if you already have a wallet ready to go elsewhere.
When using the platforms Coinbase does feel like a powerhouse of the industry whereas Coinmama is a bit like a ‘lite’ version of the two.
Customer support is still a bone of contention in the industry with many companies leaving this as an unaddressed area.
Neither company is particularly easy to get hold of on the telephone so you are generally better sticking to email. Coinbase offers customer support via email and usually is pretty responsive within 24 – 72 hours depending on the nature of your query. Their website is quite helpful with a few introduction guides and a support centre that answers most of your major questions.
Coinmama looks to reply to any emails within 24 hours but their website support is a little lightweight. Like a lot of cryptocurrency sites, they walk you through how to buy their product but then there is little else to appease your questions and concerns.
Both Companies Are Trusted by the Community
Coinbase remains a longstanding name within the cryptocurrency world, and has cemented its reputation as early adopters and is now starting to penetrate the wider public. Brian Armstrong and Fred Ehrsam launched the company in the summer of 2012, originally providing an exchange for more professional Bitcoin traders.
Coinmama is a property of NBV International s.r.o. – a daughter company of New Bit Ventures Ltd and use Bratislava, Slovakia, as a base. It’s a little tricky to find massive details about Coinmama. On a quick google search, you can see a few ‘Coinmama Scam’ type headings. These are nervy on the face of it but happy customers and reviews (including Coinmama’s review) soon dispel the questions.
Safe and Secure
Security is a core component of any great exchange platform. Coinbase industry-leading security while Coinmama does not go to quite such extents.
Coinbase combines its easy to use service with top-tier security. They use offline storage methods and two-factor authentication meaning your account can’t be accessed with just your regular password.
Coinmama does not need such stringent security as you will not be holding funds in a wallet on your account. They do use trusted security and have a decent reputation. They have Trust Guard and Comodo security specialists confirming that 256-Bit SSL encryption is actively used on pages that contain private information.
Coinmama does not currently offer two-factor authentication. It’s a little worrying that someone could gain access to your account, so be sure to choose a strong password. It’s pretty much a given that financials should use two-factor authentication these days.
Both Coinbase and Coinmama offer the use of credit cards, but this comes at a price. The fee with credit card purchases is 4%, which can become quite chunky for larger Bitcoin purchases. It’s recommended to deposit money from your bank into your Coinbase account, which will come with a 1.49% fee.
Coinmama, by their own admission, is a little heftier when it comes to fees, but that’s a price you pay for convenience. We’re happy to pay more for quick food delivery why not Bitcoins? The price you see on our their Bitcoin rate includes a fee of 6.15%. That’s the markup on the market rate. The credit/debit card transactions is a 5% fee which is added once you have chosen payment method.
The real comparison here is Coinbase’s 3.99% card fee against Coinmama’s 5% card fee.
Coinbase has an advantage of providing Bitcoin, Litecoin, and Ethereum on their platform. If you’re looking to create a portfolio of strong digital currencies, this is a pretty solid foundation to get started.
Coinmama on the other hand only provides Bitcoin and Ethereum purchases. If you are just looking to get yourself started then that is not too much of a problem. You’re not tying yourself into a certain wallet provider with Coinmama so you can switch it up in the future if need be.
Coinbase vs Coinmama: Final Thoughts
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.
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