Danielle Kubes is a trained journalist and investor who has written about personal finance for the past six years. Her writing has been published in The Globe and Mail, National Post, MoneySense, Vice and RateHub.ca. Danielle writes about investing and personal finance for Wealthsimple. She has a Bachelor of Humanities from Carleton University and a Master of Journalism from Ryerson University.
Coinmana is an online cryptocurrency brokerage. Instead of trading with other buyers and sellers you are purchasing from Coinmana’s own supply.
What is Coinmama?
Coinmama was founded in Israel in 2012 and allows you to buy and sell more than 10 cryptocurrencies, including:
You can purchase the cryptocurrency of your choice with a credit card or debit card or you can transfer funds from a bank account. You can also sell your cryptocurrency for fiat currency (paper money like the Canadian or American dollar).Buy and Sell Bitcoin, Ethereum, and over a dozen other cryptocurrencies with Wealthsimple. Sign up and Trade here.
What are Coinmama fees?
The price of each cryptocurrency is based on the TradeBlock XBX index plus 2%. Coinmama then charges a commission of 3.90%. These fees are included in the price you see for the cryptocurrency on the website so you don’t have to add it up yourself.
If you choose to pay with a credit or debit card you will pay an additional 5%. This fee is added on top of your order after you choose your method of payment. No additional fees are charged if you pay with a bank transfer.
To sell crypto, the rates are based on the TradeBlock XBX Index average plus 2%. Coinmama also charges a commission of 0.1-0.9%.
Loyalty program fees
Coinmana has a three-tier loyalty program for crypto trading devotees: the more you trade, the more you save. You’re automatically enrolled in the program and will automatically get the savings if you qualify. If you pay with a credit, debit, or prepaid card, however, you will always pay the additional 5% fee.
Tier 1: Crypto Curious: No minimum transaction necessary and regular rates apply for buying. When you sell you save 2.9%.
Tier 2: Crypto Enthusiasts: If you buy more than $5,000 USD of crypto over a rolling 90-day period you will save 12.5% on the final price. When selling, you save 2.5%
Tier 3: Crypto Believer: If you buy at least $18,000 USD over a rolling 90-day period, or a lifetime amount over $50,000 USD you will save you 25% of the final price. When selling, you save 2.1%.
Note that your Canadian credit card may also charge you a foreign currency exchange fee of around 2.5%. (Although its rates are displayed in CAD, the transaction may be processed in USD.)
Coinmama fees versus competitors
Coinbase charges a 0.5% transaction fee in addition to a commission up to $2.99. It costs an additional 3.99% to buy using a debit card.
Bitstamp charges up to a 0.5% transaction fee. To buy using a credit card it costs 5%. Canadian customers now have the option of using eCheck which involves a 1% fee.
Binance is one of the cheapest brokerage options. It charges up to a 0.1% transaction fee and offers various loyalty programs to reduce this fee. Buying with a credit or debit card costs 3%, although it sometimes offers sales that drop the fee to 1%.
Wealthsimple Crypto charges a 1.50% transaction fee but it is free to deposit and withdraw funds by linking your Canadian bank account.
How does Coinmama work?
Before trading cryptocurrency you must set up a “wallet.” A wallet is basically a crypto-bank account, which you’ll need to buy or sell crypto. Coinmama does not provide wallets nor does it store any coins. Your wallet address is a unique string of numbers and letters (also called a public key) that people can use to send you cryptocurrency. It’s also used on the blockchain to verify transactions. Ensure you are providing Coinmama with the correct wallet address. Otherwise your crypto coins will go to the wrong spot, and there is no way of getting them back. You’ll need a wallet before you can use Coinmana. (Here are some of the best Bitcoin wallets for Canadians.)
Once you’ve set up a wallet you can open an account at Coinmama. The entire process is online. You will need a government issued ID, paper and a pen, and a camera.
After filling out its basic online application, you’ll have to upload documents to verify your identity. You must first upload your government-issued photo ID (like a passport or driver’s license) and then provide a selfie holding that same ID, plus a piece of paper with Coinmama written on it and that day’s date.
You’ll receive an email if the files were successfully uploaded and your documents will then be reviewed by the compliance department. Once approved, you will be notified via email and can buy up to 15,000 USD immediately with a credit/debit card.
The whole process should take less than a day and as little as 30 minutes, although some users have reported some difficulties with getting verified.Get started with Wealthsimple Trade. Sign up today and start building your portfolio.
Is Coinmana safe and legit?
Coinmana is a reputable brokerage that is considered legitimate and safe to use. While it charges a higher fee than some competitors its website is user-friendly and it offers responsive customer service.
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