9 Differences Between Coinmama and Binance

What are the differences between Coinmama and Binance? There are some stark differences between Coinmama and Binance that you may not know, as most of the crypto users, especially if you have stepped into this exciting world for the first time.

However, if, at a point in time, you need to make a choice between these two platforms, you will need to know the differences in features and functionalities of the two in order to make a closer and better comparison.

However, if you do not know anything about it, here is an article that will help you in this aspect by letting you know the differences between these two crypto exchanges in detail.

Binance.com, or Binance as it is commonly known, offers a wider and more diverse range of crypto coins for its users to buy, sell or trade using different payment methods including using a credit or a debit card.

There are lots of (in fact more than a hundred) different types of Altcoins that you can also trade and expect to get a margin up to 10 times.

This is one of the most liquid crypto exchanges in the world which is the largest and is growing rapidly. Check out Differences Between Binance and KuCoin.

As for Coinmama, it does not allow trading but its other features and services are worth noting. It has a very fast account creation and verification process.

In fact, the platform just takes about 10 minutes to verify an account. The buying limits are higher than Binance and there are lots of other aspects in which it differs from the Binance platform.

9 Differences Between Coinmama and Binance

Differences Between Coinmama and Binance

Apart from the basic differences, it is useful to know the other differentiating factors between Coinmama and Binance platforms.

This will help you to make the right choice and a more informed decision in the end as to which among the two is better suited to meet your needs. Here you go.

1. Creation

The Binance exchange was founded by Changpeng Zhao in 2017 amidst the crypto craze. Initially, it had its head office in China but later on it moved from there to Malta, a more crypto-friendly region in the EU.

This move was mainly due to the ban on cryptocurrencies imposed by the Chinese government. However, there are lots of debates and suspicions regarding the location of its head office.

While some websites say that it is located in Malta, others say it is located in the Cayman Islands in Mahé, Seychelles.

On the other hand, Coinmama was founded by Nimrod Gruber, a renowned crypto enthusiast, who is also the one who launched the first Bitcoin ATM Company in Israel.

Coinmama was founded in 2013 and is registered in Tel Aviv, Israel. It also has several offices in other parts of the world such as Dublin.

2. Account Opening Process

The signup process and the KYC experience on these two crypto trading platforms seem to be pretty identical but there are a few additional steps required to follow when you sign up with Binance. The process here involves:

  • Clicking on ‘Get Started’
  • Providing an email address with a secure password
  • Accepting the terms and conditions
  • Visiting the email inbox and clicking on the new email from Binance to find the 6-digit verification code
  • Copying and pasting the code on the Binance tab
  • Verifying your identity if you are new to crypto in order to add fiat currencies
  • Clicking on the ‘Identification’ button on the drop-down menu in the top right-hand corner
  • Clicking on the big call-to-action yellow-gold button reading ‘Verify’ on the new page that opens and
  • Entering your name, residential address, nationality and date of birth when requested.

Next, you will need to furnish the next set of details for the KYC or Know Your Customer verification process. You will need to provide your photo ID such as your passport, a selfie holding that particular photo ID, and another photo taken by the camera of your mobile phone or a webcam for facial verification.

Any mistakes in the entire process will summarily result in rejection of your application but if everything goes well, you will need to wait for at least 15 minutes to receive a confirmation from Binance.

As for the process to sign up with Coinmama, it involves:

  • Clicking on ‘Sign Up’ on the website
  • Typing your email address with a strong password and your location when asked
  • Visiting your email account and clicking on the verification link in the new mail from Coinmama
  • Going through the KYC checks by furnishing your name, date of birth, phone number, address, gender, and country of dwelling
  • Following the requirements for the second level of KYC checks and uploading scanned copies or photos of both the front and back of your ID card, Driver’s License, passport, as well as the ID number along with its expiration date, and, finally
  • Taking and uploading a selfie holding a piece of paper with your name, date and Coinmama written on it along with your ID document.

When all is done and if everything goes on well, you will need to wait for 15 minutes at least to receive a confirmation from Coinmama.

3. Best For

The Binance platform is the largest crypto exchange in the world as of now in terms of spot trading and derivatives trading volume. It is one of the best platforms for the beginners in the crypto industry to use just as it is good for the advanced traders as well.

Read Also:  Crypto vs Stocks vs Forex - The 7 Differences

On the other hand, in comparison, the Coinmama crypto platform is considered to be a very good cryptocurrency broker that is best for the first time buyers in this industry.

4. Ease of Use

When it comes to the use of the website or app of Binance and Coinmama, Binance stands out and for several good reasons. It is the biggest and one of the best crypto exchanges in the world and offers adequate liquidity, reasonably good customer support, fast operation, and more trading pairs.

It also offers adequate staking options, DeFi, and a useful mobile app. With all these features in it, Binance, as a crypto exchange, is a platform that is very easy and a pleasure to use.

In spite of being technical, it is quite a user-friendly platform which appeals to the traders of all levels. In order to stay competitive and ahead of its rivals, Binance constantly is on the lookout to find and add newer and better features to keep up with the current as well as the future trends.

As for Coinmama on the other hand, there are no trading options or marketplace. This is a full-fledged broker which is the only service offered by this platform.

However, the platform is reasonably easy to use, though it may not be as easy as Binance. The customer support service is easy to reach with its live chat function even by the users worldwide. Coinmama however does not offer wallet service, after-sales service, or other customer service features.

This means that the platform does not need to hold on to any payment info, any wallet to protect, or download anything for security. This also means that the entire process is quite clean.

All you have to do is verify your identity to make your purchase and provide an external wallet after connecting your payment method. That is it and provided you do not want to come back for more the relationship with Coinmama will end there.

Adding to your convenience is the fact that the platform allows making payments in different types of fiat currencies of the world and also has a unique foreign exchange service built-in.

This will allow you to convert other types of fiat currencies into EUR. This is needed by the platform because it supports only Israeli, Slovak, and Irish endeavors.

5. Trading Fees

In terms of fees, Binance seems to charge a standard fee of 0.10% for all types of trades made on this platform. The platform offers numerous options in their fee schedule to keep it nice and simple as well as offer added opportunities as compared to its rivals.

Typically, the maker and taker fees on this platform both start at just 0.1%. However, it can be reduced further depending on your trading volume, the coin used for paying the fees and your participation in other activities.

Ideally, if you trade more on this platform the trading fee will be reduced significantly as it would if you use the native coin of this platform BNB to pay the fees.

It will reduce it by as much as 25%. And, if you participate in a referral scheme you may receive a discount of 20% on your trading fees along with other incentives and commissions.

As for withdrawals made on this platform, there is none for fiat currency withdrawal but a small amount is charged by the platform when you make a withdrawal in crypto coins to another platform as the network transaction fees that need to be paid to the miners in the blockchain. This fee is usually 3.5% or a minimum of $10 flat.

In comparison, the fees on the Coinmama platform can be 0.9% and as high as up to 3.9% in the form of commission on sales and that for making any withdrawals is 5%.

In the case of making payment through a credit or debit card, the momentum fee charged by the platform is 5%. If you do the math here, you will see that the cost of credit card purchase is astronomical and stands at 10.9%.

Also, the market spread on this crypto platform is 2% which means that they sell crypto coins at an inflated price to you by adding 2% to the original market price of the coins.

All these fees make this platform quite a costlier place in comparison to the Binance exchange to buy your crypto coins. However, this high price will buy you more convenience.

However, you can reduce the fees on this platform to 5.9% by buying Bitcoin or other different types of crypto coins and paying for it via SEPA transfer if you are in Europe or SWIFT if you are in the US.

Just remember at this point that SWIFT transactions will also fetch a fee of $20 if the order is less than $1,000 and none if it is more than that.

6. Deposit Methods

You can make deposits or withdrawals in fiat currency into Binance but if your account is not verified, you will not be able to do so. All verified accounts of Binance usually are provided with two options to make deposits.

You can make a bank transfer. However, for this, the charges may differ depending on the currency used. For example, Simplex will charge a 3.5% fee while a European bank card will cost you 1.8%.

If you make deposits in Russian Rubles, the charge for it will be 3.1% and iDEAL will charge a flat fee of €1.30. However, if you use SWIFT or SEPA, the transfers will be free for both.

Read Also:  Crypto Private Key vs Public Key - Which is Better

On the other hand, if you make a Paxos wire transfer, which is new and works just like any domestic wire transfer, you will receive PAX in your wallet instead of fiat currency.

This crypto coin is pegged to the US dollar and since it has as many as eleven different market pairings on this platform you will not need to make any fiat-to-crypto trade. Moreover, there are no fees or limits in this method and the transfers are done almost instantly.

In comparison, there are no deposit options offered by Coinmama, as said earlier. Since this is purely a crypto broker, apart from the broker fees and buying limits, you do not have to worry about any other fees or cash advances when you use this platform.

7. Payment Methods and Coin Selection

When you make a purchase on the Binance platform using its instant buying option via credit or debit card, which needs account verification though, you will get to choose from a wider selection of coins that include and are not limited to Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, Tether, EOS, Binance Coin, Stellar Lumens, TRON, Cardano, Monero, ChainLink, NEO, MIOTA, Cosmos, Ethereum Classic, XEM, Zcash, and Ontology.

As for Coinmama, the only currency, as said earlier, that can be used to make payments on this platform for selling your Bitcoin is EUR. As of now, the platform sells different types of crypto coins such as Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Cardano, Litecoin, Quantum, and Tezos.

If you choose to go with the instant purchase options of Coinmama, you can make your payments in different methods that include debit cards and credit cards, Apple Pay, online banking, SEPA transfer and SOFORT payment gateway in the EU, and Faster Payments in the UK.

If you are a US account holder, you can make a wire transfer for that matter but it will not be instantaneous. It will, just like all other methods, take at least 10 minutes to transfer the amount and the crypto coins to be transferred to you.

8. Trading Experience

When you use the Binance platform you will have a much better trading experience. The fact that Binance combines ease of use, logic, customer journeys, and options pretty well not only enhances the trading experiences and opportunities but also makes it the biggest crypto exchange in the best possible and most supportive way.

It not only offers spot trading options but also includes margin trading, derivative trading, futures trading, DeFi trading, and P2P trading using some of the best servers available and that money can buy.

As for its Binance US platform the experience will be similar but a few features and coin support are found lacking in comparison to the main Binance platform in order to comply with the strict US legislation.

As for Coinmama, which in fact does not offer this option at all in the first place, everything is restricted to buying crypto coins or selling Bitcoin.

9. Some Other Differences

These smaller differences between Coinmama and Binance are also good to take note of.

When it comes to the user base, Binance as of now has more than 13.5 million active users in comparison to a meager 2+ million of Coinmama.

As for value for money, the Binance platform has a higher score than Coinmama which assures a more acceptable quality of service offered by it for the price.

As for the types of crypto coins acceptable by each of these two exchanges, Binance supports almost all the major ones including BTC, ETH, LTC, XRP and hundreds more.

On the other hand, though Coinmama supports major crypto coins like BTC, ETH, XRP, and BCH, the total number of coins supported is much, much less in comparison to that of the Binance crypto exchange platform.

When it comes to fiat currency trading, once again, the Binance exchange supports more than Coinmama. In fact, it supports nearly 50 different types of fiat currencies apart from USD and EUR.

In comparison, Coinmama supports only a handful of fiat currencies which includes CAD, AUD, JPY apart from USD and EUR.

However, the Coinmama platform allows its users to buy ten different cryptocurrencies including Bitcoin, Cardano, and Ethereum. You can also use this platform to sell Bitcoin for different types of fiat currencies such as US dollars, Euros, and GBP.

Another significant point of difference between the two exchanges is that the Binance exchange, which also comes as a mobile app, offers a large set of analytical tools so that the users find it easy to make a quick and correct decision. Both these features are found lacking in the Coinmama.

In terms of maintaining anonymity while using the platforms, it is ensured by Coinmama and not by the Binance crypto trading platform.

If you consider the maximum trading amount allowed by each of these two platforms, Binance again surpasses Coinmama since it does not impose any limit on it. In comparison, Coinmama allows up to $5K daily.

The buying limit of Coinmama is quite high in comparison to that of Binance as well as its other competitors. While Binance allows buying only $5,000 in a day, Coinmama, on the other hand, allows $30,000 in each transaction if it is made through bank transfer and $15,000 if you use your debit card or credit card. As for the business accounts, this limit can be increased up to $100,000 against some extra payments

Read Also:  13 Differences Between Crypto Wallet and Exchange

Which is Better – Coinmama or Binance?

When you compare the primary metrics of the Binance exchange and Coinmama platform at a glance, apparently it may seem that the Binance exchange scores better overall than Coinmama.

However, if you compare the two crypto exchanges on the basis of other different aspects as mentioned above you will see that the difference in score is just marginal.

Therefore, it is quite difficult, if not impossible, to label one exchange as better than the other. It is all about personal preferences, the needs for crypto trading, as well as the given situations. Therefore, it is best left to the users themselves.

However, when you really need to choose one among these two crypto exchanges that will suit you the best you should do so according to your needs and conditions.

Consider the factors like the ease of use, the user interface and user experience apart from the support and functionalities of the platform that will enhance your crypto trading endeavor.

Typically, the Binance platform is well-known for its wider and more diversified crypto coin support.

However, it lags a bit behind Coinmama in terms of reputation regarding its security and safety because it has had several instances of hacking, cyber attacks and loss of money and personal data in the past.

However, as of now, the security system is quite robust which is certified by the ISO certification.

However, at this point, it is good to know a few specific points regarding Binance and its security.

This crypto exchange is currently under investigation by the Internal Revenue Service and the United States Department of Justice both for allegations of tax offenses and money laundering.

It is, for this reason, the Financial Conduct Authority of the UK has ruled out its operation in the United Kingdom since June 2021, including its independent entity Binance Jersey that was launched in 2019 to spread out its European influence.

This platform is also not accessible by the residents of the United States, once again due to regulatory pressure, and therefore the exchange has launched a separate platform, the Binance US.

This too is not available in 7 of the 50 US states namely Idaho, Louisiana, Connecticut, Hawaii, Texas, New York, and Vermont and the features and coin support are not at par with the main platform.

In comparison, the Coinmama crypto exchange platform is well-known for its higher level of security measures, a reasonably good, fast, efficient, helpful, and above-average customer support, and its widespread availability in about 188 countries all over the world including most of the US states.

This user-friendly platform also accepts credit and debit cards when you purchase Bitcoin and Ethereum making it more convenient for the users.

Registered in Slovakia and owned by New Bit Ventures Limited headquartered in Israel, Coinmama is available in 24 different US States.

One good feature of the Binance crypto exchange is that it comes with an all-inclusive user center. This is one single place where all the users can find all the relevant and necessary information that is required to make a trade.

Therefore, it is clear from above that both these crypto platforms have their own characteristic pros and cons, features and functionalities that make it really difficult to choose the winner among them two.

However, if you still have to, here are a few significant aspects summarized for you to help in this regard.

  • In terms of fees, Binance is much cheaper than Coinmama though it does not have any trading fees and therefore is the winner.
  • In terms of currency support, it is once again Binance that wins since it supports hundreds of crypto coins as compared to a very small amount of Coinmama.
  • In terms of license and regulation compliance, Coinmama has the upper hand over Binance being more transparent. As for the Binance platform, it is really difficult to infer where exactly it is incorporated exactly.
  • In terms of security, Coinmama is much better in its modus operandi and therefore is more favored since it has not been hacked.
  • In terms of trading features, Binance wins once again since Coinmama does not have any and it has some of the most advanced features.
  • In terms of popularity and brand presence, Binance is well ahead of Coinmama but when it comes to the reputation, it lags far behind and has a somewhat tarnished reputation among crypto users and purists due to its unregulated status, security issues, and shadowy workings in terms of their Initial Exchange Offerings.

Now, with all these facts and figures known to you, in order to choose the one among these two exchanges that will suit you the best, tally each with your crypto needs and circumstances.

Conclusion

Comparing the two crypto exchanges, Binance and Coinmama, is not easy. You will need to consider all the basic points of difference as well as other major ones for a better comparison. This article will prove to be very helpful in that aspect.