9 Differences Between Coinmama and Coinbase

What are the differences between Coinmama and Coinbase? If you go by the phonetics, Coinbase and Coinmama are two names that may sound synonymous but it is also quite similar in purpose, which is to make crypto trading an easy affair for the users.

Both these crypto trading platforms are available and accessible easily in hundreds of different countries all over the world.

They are known to offer some of the major and most popular crypto coins such as Bitcoin and Ethereum.

They both feature a high level of security measures that ensures your crypto holdings are safe all through.

However, there are lots of differences between these two popular crypto trading platforms available in the market to the users all over the world.

If you want to know which one is the right platform for you specifically, you will need to know the differences between them.

This article will help you a great deal in that aspect. When it comes to choosing the right crypto trading platform according to your needs and trading style, it is not an easy task.

It all comes down to the respective features, the different types of fees charged, their security and safety measures, and several other important factors, both major and minor.

All these factors are included and discussed in detail in this article. This will help you to make a more educated and informed decision in the end.

9 Differences Between Coinmama and Coinbase

Differences Between Coinmama and Coinbase

There are lots of different crypto trading platforms and exchanges available out there but this article involves the differences between two of the most popular ones namely, Coinmama and Coinbase.

While the Coinmama platform aims to ease the process of entering into the crypto market as much as possible for the users, Coinbase is one of the easiest platforms to buy, sell, hold, and manage a crypto portfolio.

Apart from that, there are also a few other important things for you to know about these two crypto trading platforms for a better understanding.

Therefore, make sure that you read this article in its entirety to have a more comprehensive knowledge.

1. Creation and Objectives

The Coinbase platform was founded in 2012 and is based in the United States. The main objective of this company is to allow the users to buy and sell Bitcoin via bank transfers.

Coinmama, on the other hand, is headquartered in Dublin as of now. It was founded in 2013 and its main objective is to act as a non-custodial crypto broker that helps the users to trade crypto coins without holding them in the exchange.

2. Crypto Support

You will like to know at first the different types of crypto coins that each of these two trading platforms supports. Well, as for Coinbase, it supports more than fifty different types of crypto coins.

The constantly growing list includes BTC, ETH, LTC, BCH, LINK, ADA, UNI, USDC, XLM, EOS, AAVE, FIL, WBTC, ETC, MKR, ALGO, MATIC, COMP, ATOM, XTZ, DAI, DASH, ENJ, SNX, ZEC, MANA, GRT, YFI, UMA, ZRX, BAT, SUSHI, BNT, OMG, REN, 1INCH, CGLD, ANKR, CRV, KNC, OGN, BAL, LRC, STORJ, REP, SKL, BAND, NMR, NKN, CVC, OXT, DNT, NU, and FORTH.

On the other hand, Coinmama supports a fewer number of crypto coins as of now such as BTC, BCH, ADA, LTC, ETH, ETC, XTZ, and XRP.

3. Fiat Currency Support

As of now, the Coinbase exchange allows the users to make transactions in USD, GBP, and EUR fiat currencies.

In comparison, the Coinmama platform supports making transactions in USD, EUR, GBP, AUD, CAD, and JPY fiat currencies.

In addition to the above, users are also allowed to make transactions using other types of fiat currencies but for that they may have to pay an exchange fee to their banks. Therefore, you should check it out before you go ahead with your transaction.

4. Countries Available

As of now, the Coinbase platform is accessible from more than a hundred different countries from all over the world to avail of its different services. However, the availability is dependent on the region where the user stays.

The regions where this platform is available and allows the users to buy, sell and convert crypto coins are:

  • The United States and Canada in North America
  • Australia in Oceania and
  • Andorra, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia Finland, France, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia, Lichtenstein, Lithuania, Luxembourg, Malta, Monaco, Norway, Poland, Portugal, Romania, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, and the United Kingdom in Europe.

Also, Coinbase allows the users to buy and convert their crypto assets in Mexico, Chile, and Singapore. As for the other countries supported, this platform offers the users their conversion services only.

You can check out the full list of all the countries supported by this platform on the ‘Countries supported’ page to know whether or not you reside in one of them to enjoy all of their services offered.

On the other hand, the Coinmama exchange is available in more countries than Coinbase. Some of the major countries that feature in the list of nearly two hundred supported countries include Iran, Syria, North Korea, Cuba, and the Ukrainian and Russian Crimea region as of now.

Read Also:  10 Differences Between Bittrex and Binance

5. Features

The feature of the two platforms is one of the most important parameters to consider while making a selection between them and therefore needs a careful exploration and a detailed discussion to consider all of their different categories.

As a crypto exchange:

Coinbase allows its users to make a wide range of transactions such as:

In addition to that, the Coinbase platform also allows its users to keep them well-versed and updated with the latest news, events, and happenings within the crypto space, as well as track different statistics and trading trends followed in the market by others.

It also allows the users to:

  • Track records and view the historic prices
  • Fund their account through bank transfers and ACH bank transfers
  • Read brief notes on different types of crypto coins and
  • Make credit and debit card purchases.

That is not all. This platform also offers the users with some handsome and result-driven investment advice, though limited.

In short, Coinbase is a solid platform to go with especially for those crypto users who are looking to expand their trading as well as knowledge about different crypto coins.

On the other hand, the features of the Coinmama exchange are also quite unique, The fact that it is a non-custodial platform is quite appealing which reduces the risks of losing the funds of the users in case of any hacking attempts since it does not hold them.

There is another good thing about this fact that your funds will not be held with the platform is that you will not have to worry when you want to withdraw your crypto coins or money because it will always be available.

This, in fact, has a big implication regarding the security of the platform as well.

The features of the Coinmama platform however support only two types of crypto transactions such as:

  • Buying crypto coins with fiat currency and
  • Selling of crypto coins for fiat currency.

The platform is very easy to use, once again due to its features, which, most people say, is the simplest in the entire industry. This fact appeals to the users who have just stepped into the crypto world.

This is in spite of the fact that the users are not provided with any type of statistical data or advanced market research tools by the platform.

The users can make transactions in different methods such as by using:

  • Credit card
  • Debit card
  • SWIFT bank transfer
  • Apple Pay and
  • SEPA bank transfer in the European Union.

In terms of earning interest:

As of now, users of the Coinbase platform can earn up to 1.25% APY on their USD Coin or USDC deposits. Also, a few selected users are allowed to stake Ethereum coins on this platform from April 2021 to earn a return of up to 6%.

However, in comparison, the Coinmama crypto exchange platform does not offer such opportunities of earning interest on their deposits because the platform does not hold any crypto coins in the first place.

Premium Subscriptions:

The Coinbase platform offers its users to use a separate crypto trading platform called Coinbase Pro. This is however useful for the experienced crypto investors and intimidating for the new users.

This app can be downloaded for free and the features on this platform allow the users to transact on it at much cheaper rates in comparison to the main Coinbase app.

Some of the features that this app comes with are limit orders, more advanced market data, and other useful features that help in advanced trading. All these are found lacking in the Coinbase main app

In comparison, the Coinmama Business feature allows the businesses to buy crypto coins worth $100,000 or more at one time. However, this feature is only available to businesses.

Crypto Lending:

The users of the Coinbase platform can also enjoy a program through which they can borrow against the value of their crypto holdings. However, as of now, these crypto-backed loans are invite-only offers.

On the other hand, there is no such crypto-lending feature available on the Coinmama platform.

6. Fees Charged

You will surely like to know the differences in the fee structures of these two popular crypto trading platforms. Well, here it is.

The base fees of Coinmama are as follows:

  • A spread charged that is 2% more than the average listed on services such as Trade Block XBX
  • A transaction fee of up to 3.81% while buying and within 2.93% and 3.90% while selling crypto assets
  • A momentum fee of 5% when the users make a debit card or a credit card transaction and
  • A transfer fee of £20 or about $27.50 for SWIFT bank transfers for orders below $1,000 but nothing in the case of SEPA bank transfers.

In addition to the above, the Coinmama platform also follows a Tiered Loyalty Program. This program allows the users to enjoy special discounts when the base fees are higher. The different tier levels are as follows:

  • Crypto Curious – This tier level has no requirements and neither does it offer any benefits.
  • Crypto Enthusiast – To reach this tier level the users need to make a collective purchase of $5,000 amounting over a 90-day rolling period which allows them to save up to 12.5% on the final price and also receive immediate customer support.
  • Crypto Believer – In order to reach this particular tier level, the users need to make a collective purchase of crypto assets worth $18,000 within the same 90-day rolling period or more than $50,000 as a lifetime purchase amount or making purchases with Coinmama for the past 30 days at least to receive a discount of 25% on the final price and get a queue-less customer support.
Read Also:  4 Differences Between Crypto.com and Gemini 

Considering all of the above features along with the market rate of Coinmama, its commission fees, and the momentum fee for debit or credit card purchases, the overall rate of fees charged by this platform will come up to 10.90%, which is extremely high as compared with the fees for making purchases on other crypto exchanges in the crypto space.

When compared with the fees of Coinbase, Coinmama can be quite an expensive option even when all its loyalty discounts are taken into account.

On the other hand, the fee structure of Coinbase seems to be quite affordable for all types of crypto traders, though it is still a bit on the higher side considering the fact that it offers a pretty simple and easy-to-use interface.

The breakup of its fee structure is however as follows:

  • Deposit fees range between 1.49% and 3.99% which varies according to the payment method used as well as the country in question where the users are allowed to make free ACH transfers but pay a $10 fee for wire transfers.
  • Withdrawal fees range from $0.00 to $25 or up to 2% depending on the withdrawal method and the country where users can make free ACH transfers but will need to pay an outgoing fee of $25 for wire transfers.
  • All credit transaction fees are 2% and the other trading and transaction fees range from 0.5% to 4.5% which however varies depending on the type of crypto coins used, the payment method, and size of the transaction with a spread of 0.50% and the tiered buying and selling transaction fees ranging from $0.99 to 1.49%.

The Coinbase platform also charges a fee for bank account purchase and wallet purchase fee of 1.49% each, a debit card purchase fee of 3.99%, and a crypto conversion fee of 2%.

If you wish to use the Coinbase Pro platform, you will find that the fees charged on it are comparatively inexpensive but the platform itself is designed to cater to the needs of the experts in crypto trading. However, the fees charged by this platform are as follows:

  • Deposit fees range from $0.00 to $10 depending on the payment method and country of the users with all ACH transfers being made free but a $10 charge for wire transfers
  • Withdrawal fees ranging from $0.00 to $25 depending on the country and withdrawal method used with allowing the users to make free ACH transfers but wire transfers for an outgoing fee of $25 and
  • Trading and transaction fees of 0.5% vary on the basis of the size of the transaction, type of crypto coin used and the payment method.

Also, a buying and selling transaction fee of 0.50% with free Bank Account Purchases and Wallet Purchases.

7. Security and Safety

Both these crypto trading platforms also differ in the security features offered to the users to keep their assets safe. As for Coinbase, the safety and security features offered include:

  • Independent FDIC insurance of up to $250000 to protect the crypto assets from being lost due to employee theft or cyber security breaches
  • Offline cold storage where is 97% of the funds of the users are stored safely
  • Two-Factor Authentication via Google Authenticator or SMS to ensure a safer login
  • Biometric Login feature to add an extra layer of protection to the security and convenience of use of the accounts and
  • Address Allowlisting feature that allows the users to choose which particular account or wallet address they want to make their withdrawals to and which they do not.

The best part is that Coinbase has never been hacked to date, which adds to the trust level.

In comparison, the safety and security features of Coinmama are not as robust as those of Coinbase but still are good enough to safely transact your crypto assets.

Though the platform allows Two-Factor Authentication for account security, they do not have custody of user funds, unlike Coinbase that holds both crypto and fiat balances.

Moreover, they do not even store credit card data as well. This means that even if the accounts are hacked, you do not stand to lose your money or financial data.

However, one good thing about the safety and security aspect of the Coinmama platform is that it is registered as a Money Service Business with the Financial Crimes Enforcement Network or FinCEN, a bureau of the US Treasury.

This means that the users will need to produce some documents to the platform to help in identifying them when they sign up.

One thing that can be a point of concern for the users is that Coinmama suffered a breach in 2019 that exposed the personal information and data of nearly 450,000 users.

But, as said earlier, no funds of the users were lost since the platform does not hold crypto or fiat currencies.

8. Ease of Use

When it comes to user-friendliness, Coinbase seems to be quite easy to use. In fact, it is their beginner-friendliness that is the main selling point for them.

Read Also:  7 Differences Between Crypto Art and Digital Art

Whether it is their desktop website or the proprietary app, both are easy to use and navigate by the users who are new to this crypto space. The features and functionalities of the interface let them start trading in minutes.

The platform also provides a lot of useful assistance and guidance to the users who are specifically looking for it on a crypto exchange platform.

The platform also provides short courses for those users who are willing to learn more about cryptocurrencies and enhance their knowledge on crypto trading so that they can earn more crypto in return.

However, Coinmama is a bit easier to use in comparison to the Coinbase platform. The services offered by this platform are very simple which appeals to the users the most and the features of the website allow the users to buy and sell crypto coins easily and conveniently without having to worry about account management and withdrawals.

However, do take a look at the fees structure before you select this platform since it may seem to be a bit higher for those users who are looking to trade crypto for cheap.

9. Customer Support

In terms of customer support, the good thing about Coinbase is that this platform itself comes with a lot of features that offer the users a wide knowledge base about cryptocurrencies and trading along with some basic troubleshooting.

However, one downside of this platform is that as of now it does not provide its users with any kind of phone support.

The customer support service of this platform can be contacted through their website from the help section or by clicking on the ‘Contact Us’ button located at the bottom of the page.

On the other hand, the customer service of Coinmama seems to be a bit better than Coinbase considering the fact that the simple questions are answered by the team at the Help Center who has an extensive knowledge base.

Their customer service can also be contacted 24/7 through the contact form or via chat. The response time is usually a couple of minutes.

In addition to that, the platform is also known to have a very active presence on social media including Facebook, Twitter, Telegram, and LinkedIn.

Which is Better – Coinmama or Coinbase?

In order to determine which among Coinbase and Coinmama is a better crypto trading platform, you will not only need to compare them based on their differences mentioned above but also on your crypto needs that should be met successfully by the platform.

In comparison, the Coinbase platform has much wider options than Coinmama overall. This includes a mobile app, more coin or currency support, and a few banking services. However, please do consider the fees of the two platforms before you make your final choice.

Considering all of the above breakups of features and fees, it is evident that Coinbase Pro allows the users to make the most affordable transactions and is therefore the best choice for the traders for sure.

However, users looking for a simpler interface can use the main platform of Coinbase which charges fees higher than Coinbase Pro but much cheaper in comparison to the fees charged by Coinmama.

Also, the pros and cons of each of these platforms will help you to make the right choice. Take a quick look at the advantages and disadvantages of Coinbase and Coinmama before you sign up with one of them.

As for Coinbase, the benefits of choosing it are that you will get to use a beginner-friendly platform and interface and be able to choose from a wide range of crypto coins.

This platform is accessible from several countries and is quite secure to use. However, you should be okay with its relatively higher fees charged and no phone support provided by the platform. Also, you will have no private keys.

Typically, the Coinbase platform is best for those who are:

On the other hand, the benefits offered by the Coinmama platform include its easy-to-use interface which is available in almost every country of this world. This is a non-custodial exchange that offers quite good customer service.

However, the downsides of this platform are that it charges very high fees and does not come with a mobile app. Also, it has experienced a few hacking incidents in the past which shows it below optimal security.

Nevertheless, you can choose Coinmama if you:

  • Want a support team that is quite responsive and knowledgeable
  • Want to make quicker transactions and
  • Want to store your crypto assets in a separate wallet.

However, everything, as said earlier, depends on your personal preferences.

Conclusion

You will have an easy time choosing the right platform among Coinbase and Coinmama since now you know the differences between their features and functionalities by going through this article. Happy crypto trading!