Review of Coinmama service
One of the first services where people could buy bitcoins was Coinmama. This service offered people to purchase bitcoins via the Western Union. This service was very popular back in 2014. Right now, service provides a new much better and advanced version with many more features. So, we decided to discover it and write a review.
The Western Union vs Credit Cards
One of the biggest changes that happen with bitcoins purchase is that now it is possible to buy coins using credit cards. This option became available in 2014. Such companies as Simplex allowed exchanges and brokers to check users with the lowest risk level which allows accepting credit cards when buying bitcoins.
This is a great option without a doubt as long as people do not have to be bound to local Western Union departments where they can transfer money and purchase bitcoins. The service Coinmama integrates Simplex into its own system and allows people to buy bitcoins using VISA or MasterCard credit card.
Of course, fees became lower as long as credit cards are the much more popular way of making payments all over the world. Now if you use a credit card you will get the benefits of saving money. Before when people used the Western Union to buy bitcoins, one coin cost $310 while the Bitstamp rate was $257. Therefore, the fee was 22% which is an incredibly big number.
After changes to credit cards, the fee is only 6,5%. When you decide to buy bitcoins using your credit card, this is the only fee that you will have to pay and this is not much. The majority of companies that sell bitcoins take the same commission. The fee helps companies to avoid fraud and chargebacks.
Still, a lot of people would say that 6,5% is a high fee but the companies search for ways to decrease it to provide customers a bigger value for what they pay.
Receive your bitcoins instantly
What do users value the most? People who buy bitcoins value the speed at which they receive what they paid for. Before, when people used the Western Union they had to wait for confirmation and it was not a convenient way. Now as soon as your payment cleared, you will receive your bitcoins and will be able to withdraw them which is a great innovation.
This option is really significant because the value of bitcoin can change within a day or two and then a buyer will get less or more coins than needed. Of course, it is great to receive more but what if the rate drops and you receive less coins that you paid for…Not a good case scenario, isn’t it? However, you should keep in mind that when you buy bitcoins for the first time, there is a limit on how many coins you an purchase. At the moment the limit is $5000.
Reddit’s opinion about Coinmama service
Most people who left their reviews about Coinmama service on Reddit were absolutely happy with options and features. A lot of people confirm that the site became much better and convenient since the change to credit cards. Of course, there were reviews that explained that such fee is high.
How to buy bitcoins via Coinmama service?
When you come to Coinmama service, the first thing that you have to do is to register. After a simple sign up procedure, you can click buy bitcoin on the main page and you will see the current rates for 0,5 bitcoin, 1 bitcoin, 1,5 bitcoin, and 2 bitcoins. If you scroll down you will be able to buy a different amount. So, choose what amount you need manually. When choose, click buy and the service will start preparing your order. There will be two payment methods: Simplex, VISA or MasterCard, and MoneyGram Cash. Then you can purchase bitcoins by entering your Bitcoin address and receive them instantly.
Coinmama service has a decent reputation, so there are not many shortcomings that would stop us from using this service. There is only of disadvantage that we discussed earlier which is a high fee. However, there is no way to avoid at right now. From the other hand, if you know another service where the fee is lower and the service is trustful, why now skipping Coinmama. Hopefully, the service will provide a lower fee in time and make it easier for customers.