Coinme Reviews

The most common way to buy cryptocurrencies is through centralized exchanges like Binance and Bybit. But have you ever heard of Bitcoin ATMs? They function similarly to cash ATMs, serving as a unique way to buy and sell Bitcoin, especially when you're on a travel. Thus, in this Coinme review, I'll introduce you to a platform that provides access to BTMs.

Across the US, there are thousands of Coinme BTMs, but that just marks the start of this platform. Let's take a further look in this Coinme review and decode the specialty of a Bitcoin ATM as a transaction method. 

Verdict at a glance: Coinme bridges traditional and digital finance with its Bitcoin ATM services. Users can buy and sell cryptocurrencies with cash at physical kiosks across The States. Many user Coinme reviews also endorse the convenience of BTMs. Despite such benefits, the platform falls short compared to larger exchanges in terms of features, fees, and geographic availability.

What is Coinme?

Before I discuss my experience using the platform and numerous user Coinme reviews, let’s talk about the basic information: what is Coinme? Coinme is a digital currency exchange that allows users to buy, sell, and store digital assets using a network of Bitcoin ATMs (BTMs).

The company’s mission is to be a reliable gateway to digital currencies. It was founded in 2014 by Neil Bergquist, but the idea of integrating Bitcoin ATMs into the business has been brewed since 2012 when he started learning about Bitcoin. He then tried a Canadian Bitcoin ATM, learned how BTM works, purchased the machine from a manufacturer in 2014, and placed some ATM kiosks in the greater Seattle area.

As time went by, Coinme became the first licensed Bitcoin ATM operator in the US. At the time of writing this Coinme review, there are more than 9,500 Coinme-powered Bitcoin ATMs located within the country. Partnering with Moneygram and Coinstar, Coinme brings forth 40,000+ BTM locations across retail stores in the US.

Moreover, Coinme's services are not only available through its ATMs but also through its mobile app and website. Using the Coinstar ATM, you can convert cash into a Bitcoin voucher. The voucher has a unique code and PIN that you can use with the Coinme app to get your Bitcoin.

The team claims to have built Coinme on the foundation of low fees, user-friendly features, excellent customer support, and strong security measures. Is that so? Let's find out more in this review! I've compiled my experience and user Coinme reviews to provide a comprehensive evaluation.

Coinme Reviews: PROS

If you've read through user Coinme reviews, you'll often find praises directed toward the platform's user-friendliness to buying and selling cryptocurrencies. So, let's take a look at the specific features that make Coinme an attractive choice for many cryptocurrency users.

Compliance and Security

Since its inception in 2014, Coinme seems to have maintained a strong commitment to regulatory compliance. It has actively collaborated with financial regulators to ensure its operations adhere to both state and federal regulations.

As a result, Coinme has been regulated as a money services business and state-licensed virtual exchange since a decade ago (as of writing). Having obtained such compliance, Coinme has built a presence in 49 states across the US. Note that, as of now, Coinme is only accessible to US citizens.

Additionally, Coinme holds the distinction of being one of the largest licensed cryptocurrency cash exchanges in the US. It’s licensed and registered as a money service business under the Financial Crimes Enforcement Network (FinCEN), a bureau of the United States Department of the Treasury. In the US, FinCEN is responsible for monitoring banks, financial institutions, and other businesses to combat money laundering, terrorism funding, and other financial crimes.^[1]

With all these regulatory statuses, you may feel relaxed that Coinme's ATMs won't be removed from the market, especially as the Bitcoin ATM industry experienced a decline in 2023.

Clear regulatory compliance also helps Coinme acquire partnerships with reputable grocery stores, retail check cashing locations, and pharmacies. Currently, Coinme boasts a huge network of 21,000 locations, offering the instant sale and purchase of Bitcoin with cash. It further expanded its network by bringing the supermarket giant Walmart into its radar to begin hosting Bitcoin ATMs with Coinstar.

You may ask, how does regulatory compliance impact Coinme's users? One of the significant implications is the requirement for customer identification. Users have to pass the know-your-customer (KYC) verification by submitting a state-issued ID card, such as a passport or driver’s license, to prove their identity and start using Coinme's features.

As part of its rigorous KYC process, Coinme also requires users to verify their phone numbers. As a user, you simply need to provide a US phone number. Afterward, Coinme will send a verification code via SMS, which is an extra layer of security to protect your account and prevent unauthorized access.

While some users may not really like giving their personal information, this strict process is part of Coinme's measures to prevent fraud and money laundering. By verifying customer identities, Coinme can swiftly maintain comprehensive record-keeping and flag any suspicious activity to be reported to FinCEN, ensuring a safer environment for users.

Besides regulatory compliance, Coinme uses two-factor authentication (2FA) to protect user accounts. 2FA enhances security by requiring users to provide a second form of verification, which is a code sent to their mobile device, in addition to their password^[2]. Even if unauthorized individuals were to get a user's password, they wouldn't be able to hack into your account since they didn't have your device.

Moreover, the platform saves users' funds in cold wallet storage. When talking about hot vs. cold wallets, the latter is generally considered more secure as it’s not connected to the internet, making it harder for hackers to access preserved money. User Coinme reviews also highlight the platform's secure storage solution as its commitment to protecting user assets and minimizing the risk of theft or loss.

Easy Access to Features

Coinme's extensive network of ATMs offers a convenient way for users to cash in and out of cryptocurrencies. Plenty of users' Coinme reviews praise the ease of use and accessibility of Bitcoin ATMs, especially for those who may not have instant access to traditional banking services.

Coinme’s cash network started to scale in 2019 thanks to its partnership with Coinstar, a company that operates a network of self-service coin-counting machines. Ever since then, Coinme has doubled its cash network by collaborating with MoneyGram, a global money transfer service. Together with those partner companies, Coinme’s cash network adds up to over 43,000 locations nationwide.

Additionally, Coinme's expansion can be accredited to its streamlined user experience. Its Bitcoin ATMs feature clear instructions and a custodial wallet that securely stores your cryptocurrency, eliminating the need to manage a private wallet. So, for those who want to buy or sell Bitcoin in person, Coinme's ATMs can be a convenient and accessible option.

Still, you need to be aware of the security risks associated with using a custodial wallet. While Coinme takes measures to protect user funds, custodial wallets are controlled by Coinme themselves, which means users don't have complete control over their private keys. Therefore, if you seek a higher level of security, you may want to consider using a separate hardware wallet like Ledger Nano X or Trezor Safe 5.

Aside from its regional expansion and user-friendliness, the convenience of Coinme's cash network is enhanced by its availability on both desktop and mobile apps (Android and iOS). This allows users to easily access and manage their cryptocurrency transactions, whether you prefer the convenience of using your smartphone or the larger screen of a computer.

The user interfaces of both the Coinme website and app are intuitively designed, with clear navigation and easy-to-understand instructions. Even if you're not a tech whiz, you'll find it straightforward to buy, sell, or hold cryptocurrency on Coinme.

To cash out crypto, start by selecting how much you'd like to sell for cash from the Coinme app or website. Once you confirm the details, you can choose from thousands of participating ATMs near you. The app and website will provide a map and a search bar to easily locate the nearest ATM. With a unique cash code sent to your mobile device, you can then pick up cash instantly from a local ATM.

The process of buying crypto on Coinme is similar. Simply set your purchase details (up to $9,500 daily) on the app or website, and then head to the nearest ATM to insert cash. Alternatively, you can connect your debit card and buy crypto from anywhere.

At the time of writing, you can make transactions for eight cryptocurrencies on Coinme:

• Bitcoin (BTC);
• Ethereum (ETH);
• Dogecoin (DOGE);
• Chainlink (LINK);
• Litecoin (LTC);
• Stellar Lumens (XLM);
• USD Coin (USDC);
• Polygon (MATIC) (Disclaimer: recently, MATIC has been upgraded into POL).

Compared to crypto giants like Binance and Bybit, this list is relatively limited. I think Coinme aims for simplicity so that someone new to cryptocurrency will not be overwhelmed with a huge array of options.

However, note that the availability of cryptocurrencies on Coinme may change over time. For example, until 2023, the platform didn't support sending or receiving USDC. Then, in May 2023, Coinme decided to work with the Stellar Development Foundation to integrate USDC into its platform.

Coinme's expansion of supported cryptocurrencies may show that the platform commits to providing users with more options. Therefore, it's always a good idea to check the platform's website or app for the most up-to-date information.

Helpful Support

Besides convenience and compliance, many Coinme reviews complement the platform’s helpful support. While some other digital currency exchanges use a support ticket system, Coinme offers live chat support for its users. In other words, you can quickly get answers to your questions and resolve issues simply by clicking the help button in the bottom right corner of the website or the message icon on the app.

Coinme's live chat support is available during business hours, from 7 AM to 6 PM Pacific Time, Monday to Friday. If you have questions or issues outside the hours, click the “?” button to navigate to the help center.

Recently, Coinme upgraded its support with more simplified navigation options, thanks to the feedback gathered from user Coinme reviews. The chat box includes a helpful center organized into categories for easy navigation, and you can also use the search bar to quickly find the information you need.

For existing users, there's an option to sign in for a better chat experience that suggests personalized assistance or account-specific information.

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Coinme Reviews: CONS

Besides positive user Coinme reviews, there are some drawbacks to consider. While Coinme offers a user-friendly experience, it may not be the best option. I’ll explain the reasons below.

A US-Centric Crypto Cash Network

Coinme is currently only available for users located in the US. This limitation can be problematic for individuals who reside in other countries and wish to use the platform's services.

Some user Coinme reviews mentioned that they couldn’t even access the signup page. The platform may have a geo-blocking feature, like an IP address detector, that prevents users outside the United States from accessing the trading functions, even if they use an international debit or credit card.

While Coinme may be a convenient option for US-based users, its limited availability can be seen as a major disadvantage for those seeking a more globally accessible Bitcoin ATM network.

Coinme may consider expanding its services to other regions in the future. However, for now, its geographical lock remains a factor potential users should consider.

Limited Cryptocurrencies

Coinme currently offers a limited selection of cryptocurrencies for purchase. As of now, the platform supports only eight cryptocurrencies, although it does cover top assets like BTC and ETH.

For users who are new to cryptocurrencies or are primarily interested in the most popular coins or tokens, Coinme's focus on a smaller number of digital assets may be a benefit. This can simplify the decision-making process and reduce the risk of investing in less established or potentially risky cryptocurrencies.

However, Coinme's limited selection of cryptocurrencies may be a drawback if you're an experienced trader who values a diverse portfolio.

Still, this limitation depends on your preference. Some users may prefer to purchase only the popular ones, but others may seek out new assets or less established cryptocurrencies with higher potential returns.

No Insurance Fund

While many user Coinme reviews praise its innovation for Bitcoin ATMs and helpful customer support, it's important to note that the platform doesn’t have insurance funds. This means that if Coinme were to experience a security breach or financial difficulties, users might be unable to recover their funds.

It's crucial for users to understand this risk and consider an alternative like Bybit if they're seeking a higher level of security for their crypto assets. Binance even has its own Secure Assets Funds for Users (SAFU), taking a further step in protecting user's wealth.

While Bybit and Binance may still not have the same level of physical accessibility as Coinme's ATM network, they offer a more secure and comprehensive platform for buying, selling, and storing cryptocurrencies. Furthermore, they use cold wallet storage and have an insurance fund to protect users in case of a security breach or other unforeseen circumstances.

A Record of Fraudulent Activities

In 2023, Coinme was fined $4 million by the US Securities and Exchange Commission (SEC) for violating securities laws. The company and its CEO were accused of making false and misleading statements about their digital token, UpToken, to lure investors.

The team raised $3.6 million through an initial coin offering (ICO) in 2017, promising investors perks and increased ATM operations. At that time, Coinme told the investors they would gain from the exchange’s purchasing Uptoken after the ICO was completed. However, the company later shut down all its ATMs, leaving investors with a token that had little to no value.

The SEC found that Coinme engaged in shady transactions and price manipulation tactics to artificially inflate the demand for UpTokens.

So, what does this mean for Coinme users? While the SEC action doesn't directly impact the operations of Coinme's ATMs or its ability to buy and sell cryptocurrencies, it does raise concerns about the company's business practices and financial integrity. The SEC's findings suggest that Coinme may not have acted in the best interests of its investors and may have engaged in deceptive practices.

Coinme Fees

I've previously discussed the pros and cons of Coinme by compiling my own and users' experience and research. Now, let's talk about the fees associated with using the platform in this Coinme review. Understanding the fees involved is crucial when making decisions about the service you choose for buying and selling crypto.

On Coinme, buying cryptocurrencies via a debit card (Visa or Mastercard) requires exchange fees of up to 5.49% and 3.25% for card processing fees (with a minimum of $1). Note that there’s a transaction limit of $20,000 per day and $100,000 per month.

If you choose to buy via a Coinstar ATM, you'll be charged 12.5% cash exchange fees and 4% transaction fees (vary by location). Also, be aware of the transaction limit: $9,500 per day and $60,000 per month.

Meanwhile, MoneyGram ATMs (for BTC purchases only) incur 4% cash exchange fees and a $2,75/transaction fee with a transaction limit of $400 per transaction and $2,000 per day.

To better understand Coinme fees, let's look at this specific scenario: John plans to buy $100 of Bitcoin from a Coinme-enabled Coinstar kiosk. Keep in mind that there's a 16.5% fee (4% + 12.5%) associated with this transaction. So, he'll need to put in $117 to get $100 of Bitcoin to the ATM. Additionally, if he wants to transfer his Bitcoin to a different wallet, he'll be charged a Bitcoin network fee.

For a detailed breakdown of the Coinme fees associated with different payment methods, check the table below. Note that transaction limits may vary by location and account status.

Table: Payment methods on Coinme.

Additionally, those who want to send assets to another wallet should be aware of network fees, depending on the coin or token and blockchain. Check the “Fees” page on the Coinme website for further details.

How to Use Coinme?

At this point, you have insights on Coinme fees, pros, and cons. So, let's see how to use Coinme and find out if the process is user-friendly like what user Coinme reviews said. You’ll find a step-by-step guide on how to make a Coinme account and make your first trade.

How to Make a Coinme Account?

To start your journey with Coinme, the first step is to create an account. You can create a Coinme account via the app or website, but I’ll show you how to do it on the website in this Coinme review:

Step 1: Go to the Coinme website and click the “Create Account” button in the upper right corner.

Step 2: Type in your phone number and email address, then create a password. The password must include eight or more characters with a combination of at least an upper-case letter, a lower-case letter, a symbol, and a number. Coinme suggests not to use a generic word like “password”. Check the boxes to confirm you’re 18 years old or older and agree to the platform’s terms of service and privacy policy. Hit the “Create Account” button.

Step 3: After submitting the details required, a 6-digit verification code will be sent to your mobile phone number that you entered in the previous step. Enter the code shown in the provided field and click “Continue”.

Step 4: ID verification is required in order to fully unlock the features. So, in this step, provide your full name and date of birth as it appears on your ID, then click “Continue”.

Step 5: Provide your location (state of residence) to verify that you’re in a location where Coinme services are available. Since Coinme is exclusively available in the United States, the “Country” field is pre-selected as such.

Congratulations, your account creation is complete! Now, you have the option to upgrade your account to unlock additional features like selling cryptocurrencies, making digital purchases, using your debit card, and enjoying higher transaction limits.

If you're ready to continue the verification process, click “Continue”. However, you can also choose to do this later by clicking “Maybe later”. The verification involves uploading a photo of your ID and selfie and providing a social security number (SSN).

How to Buy Cryptocurrencies on Coinme?

There are several methods on how to buy cryptocurrencies on Coinme – using a debit card or going to the nearest ATM. In this guide, I’ll show you how to purchase an asset with a debit card. The process is similar to the Coinme mobile app and website, but I used a mobile app.

Step 1: Log in to your account and select the “Transact” button.

Step 2: Choose “Buy” from the list.

Step 3: On the “Select Purchase Method” screen, choose “Link Another Card".

Step 4:  Provide the requested details, like the card number, expiration date, and CVC. After that, click “Next”. Note that you’re only able to click “Next” if the information you've provided is valid.

Once you've linked a card, Coinme will also ask you to provide a billing address - make sure it matches your residential address.

Step 5: Verify your card ownership by checking two pending transactions from Coinme and entering the amounts of them.

Step 6: Proceed with buying the crypto by entering the dollar amount you want to buy and clicking the “Continue” button.

Step 7: Press the “Confirm” button to process the transaction. Ensure the method, exchange rate, and any additional fees are accurate and acceptable.

Once everything is complete, you should see a final confirmation page to indicate the purchase has been processed. Your funds usually are deposited in the account linked to your debit card within 30 minutes.

Pros

• Secure and reliable
• Accepts fiat currencies
• Lots of trading options

Main Features

• Reputable exchange
• Accepts fiat currencies
• Offers various trading options

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Pros

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• Simple to use
• Accepts only the most trustworthy cryptocurrencies

Main Features

• A leading cryptocurrency exchange platform
• Best for beginner investors
• Accepts fiat currencies

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Pros

• Beginner-friendly
• Secure
• Decent trading and withdrawal fees

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Conclusions

In this Coinme review, we've found out that it's a user-friendly platform for buying and selling cryptocurrencies. While it may not have the same extensive features or cryptocurrency offerings as CEXs in general, like Binance, Bybit, or Kraken, Coinme's simplicity makes it a suitable choice for beginners and those who prefer making transactions with cash.

It's important to consider Coinme fees, as they can be higher compared to other platforms. Additionally, the lack of an insurance fund should be taken into account. Still, Coinme’s security measures and compliance with regulations may provide a sense of confidence for users.

Ultimately, the best platform for you will depend on your preferences. If you're looking for a straightforward and accessible way to get started with cryptocurrencies, Coinme may be a good option to consider.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. W. Gaviyau, A. B. Sibindi: 'Global Anti-Money Laundering and Combating Terrorism Financing Regulatory Framework: A Critique';

2. E. D. Cristofaro, et al: 'Two-Factor or not Two-Factor? A Comparative Usability Study of Two-Factor Authentication'.