Coinme - another exchange that fails to withdraw money

What Is Coinme？

Coinme is a digital currency exchange and mobile app that allows users to buy and sell cryptocurrency. Coinme is the official exchange software used in Coinstar and MoneyGram ATM machines, allowing users to buy and sell

cryptocurrency

with cash or debit cards.

The Coinme mobile app is akin to a typical

crypto exchange

, allowing users to buy, sell, and transfer crypto with a debit card or prepaid card. The Coinme Bitcoin ATM software will enable users to deposit cash into a Coinstar or MoneyGram ATM and receive a Coinm

Risks of Using Coinme

Coinme does come with a few risks, especially in light of $3.2 billion stolen through crypto hacks in 2021 alone, according to blockchain data analysis company, Chainalysis.

High Fees

Coinme charges 4% transaction fees for buying or selling crypto. In addition, using Coinme at a Bitcoin ATM charges an additional transaction fee. Coinstar Bitcoin ATMs charge a 4% conversion fee, while MoneyGram Bitcoin ATMs charge a flat fee of $2.75.

Lack of Insurance

Coinme does not offer insurance on its crypto wallet, so user funds are not protected. Unlike regular banks that offer FDIC Insurance up to $250,000 per depositor, Coinme offers no such protections, and funds stolen or lost will not be reimbursed.

Volatility

While not attributable to Coinme directly, buying Bitcoin and other cryptocurrencies comes with the risk of massive volatility, with prices regularly dropping as much as 65% within a short time span. Using Coinme to buy crypto comes with the risk of loss, including total loss of capital.

High-Interest Rates

Though some crypto loans offer low rates, most charge more than a 5% annual percentage rate (APR), with some charging up to 13% APR (or more).

Is Coinme Safe？

Coinme is a secure crypto exchange that protects user information via SSL encryption, and follows Know Your Customer (KYC) best practices for identity verification.

Users can also enable Two-Factor Authentication (2FA) on accounts to add an extra layer of protection for access to their accounts. 15 But Coinme only offers a digital hot wallet, and Bitcoin funds are not protected via cold storage. There is also no crypto insurance in the case of lost user funds due to theft or fraud. By comparison, most large crypto exchanges (such as Gemini) offer insurance against loss, and keep most user funds in offline storage vaults for protection from hackers.

Users' Reviews

Coinme on Trustpilot

Complaint from Coinme's user on Reddit.

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