What Is Coinme?
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Jacob Wade has been a nationally-recognized personal finance expert for the past decade. He has written professionally for The Balance, LendingTree, CompareCards, Investing Answers, and other widely-followed sites.
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Updated November 28, 2023
Reviewed by ERIKA RASURE
Fact checked by VIKKI VELASQUEZ
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What Is Coinme?
Coinme is a digital currency exchange and mobile app that lets you buy and sell cryptocurrency. Coinme is the official exchange software used in Coinstar and MoneyGram ATMs, allowing you to buy and sell cryptocurrency with cash or debit cards.
The Coinme mobile app is akin to a typical crypto exchange, allowing you to buy, sell, and transfer crypto with a debit or prepaid card. The Coinme Bitcoin ATM software lets you deposit cash into a Coinstar or MoneyGram ATM and receive a Coinme Bitcoin voucher that can be redeemed for Bitcoin on the Coinme app.
KEY TAKEAWAYS
- Coinme is a cryptocurrency exchange.
- Coinme powers Bitcoin ATMs for Coinstar and MoneyGram.
- Coinme offers a mobile app to buy and sell crypto.
- Coinme charges higher fees than most crypto exchanges.
Coinme ATMs
Coinme is the official exchange for Bitcoin ATMs provided by Coinstar and MoneyGram. Coinstar has more than 9,500 Bitcoin ATMs around the U.S.1
MoneyGram has more than 350,000 locations.2
The Coinme software allows you to deposit cash in a Coinstar ATM and exchange it for a Bitcoin voucher. This voucher has a specialized code and PIN number that can be used in conjunction with the Coinme mobile app to redeem your bitcoin deposits.
While Coinstar only offers unattended ATMs, MoneyGram offers in-person transactions.
To use MoneyGram, you'll need to initiate the bitcoin transaction on the Coinme app first, then bring a photo ID, cash, and phone to a MoneyGram location to complete the transaction. Bitcoin will be deposited into your Coinme wallet.3
Coinme Mobile App (and Wallet)
The Coinme app is a cryptocurrency exchange and digital wallet that is used to buy and sell cryptocurrency. You can store your bitcoin and other supported crypto on the Coinme platform. The Coinme app is also used for Bitcoin ATM transactions, with the ability to redeem vouchers from both Coinstar and MoneyGram ATMs.4
The Coinme exchange offers access to eight cryptocurrencies:4
- Bitcoin (BTC)
- Ether (ETH)
- Litecoin (LITE)
- Polygon (MATIC)
- Chainlink (LINK)
- Dogecoin (DOGE)
- Stellar Lumens (XLM)
- USDC
These cryptocurrencies can be bought or sold through the app using a Visa or Mastercard debit or prepaid card. The app also lets you transfer crypto to an external wallet, though there may be network fees, depending on the crypto being transferred.4
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.5
Here are a few of the risks of using Coinme:
High Fees
Coinme charges 5.49% transaction fees for buying crypto through its app. 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 fee of between $2.75 and $5.75.6
7
Lack of Insurance
Coinme does not offer insurance on its crypto wallet, so your funds are not protected. Unlike regular banks that offer FDIC Insurance up to $250,000 per depositor, Coinme provides no such protections, and funds stolen or lost will not be reimbursed.8
9
Volatility
While not attributable to Coinme directly, buying Bitcoin and other cryptocurrencies comes with the risk of volatility, with prices regularly dropping thousands of dollars within a short time span. Using Coinme to buy crypto comes with the risk of loss, including total loss of capital.10
High Interest Rates
Although some crypto loans offer low rates, some charge more than a 12% annual percentage rate (APR), depending on your chosen platform.11
How to Use Coinme
To use Coinme, you can sign up for a free account by downloading the Coinme app (available on both Android and iOS devices). Once signed up, you can find a nearby Bitcoin ATM with the ATM locator in the app.
At the ATM, you'll need to select how much Bitcoin to purchase, enter a phone number, insert the required cash, and receive a printed voucher to redeem within the Coinme app. You verify your identity by submitting a photo ID and taking a selfie picture within the app.
To use the Coinme app to purchase Bitcoin or other crypto, you simply link a Visa or Mastercard debit or prepaid card, choose how much crypto to buy, and complete the transaction.
What Are Coime's Fees?
Coinme charges several fees. Here's a breakdown of the fees for both types of Bitcoin ATMs and for using the Coinme app exchange:
Coinme App purchase fees:
- Buying with a Visa or Mastercard: 5.49% exchange fee + 3.25% card processing fee ($1 minimum)
- Selling with a Visa: 2% exchange fee + 1.5% instant withdrawal fee
Coinme Cash Network Fees:
- Buying through Coinstar: 11% exchange fee + 4% transaction fee (fees may vary by location)
MoneyGram fees:
- Buy only: 4% exchange fee + $2.75 per transaction
All transactions are subject to network fees charged by the blockchain network to which the cryptocurrency you're buying or selling belongs, such as gas fees for ether or mining fees for bitcoin.12
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. You can also enable Two-Factor Authentication (2FA) on accounts to add an extra layer of protection for access to your account.13
But Coinme only offers a digital hot wallet, and Bitcoin funds are not protected via cold storage. There is also no crypto insurance for 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.14
How Many Total Locations Does Coinme Have?
Coinme has at least 40,000 retail locations in the United States, including all its locations through Coinstar and MoneyGram. It has more than 9,500 Bitcoin ATMs and thousands of MoneyGram locations.15
Can You Send Bitcoin From Coinme to Another Wallet?
Yes, you can send Bitcoin from your Coinme wallet to another wallet. To do so, you just need the recipient's wallet address. However, Coinme notes that users should triple-check wallet addresses since once the funds have been sent, there is no way to recover them if they went to the wrong wallet address.16
The Bottom Line
Coinme is a cryptocurrency application that lets you buy and sell crypto conveniently via an app or ATM. It is similar to exchanges but charges much higher fees, with over 10% being charged at Coinstar ATMs. However, it is one of the few options besides exchanges for turning cash directly into Bitcoin.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own cryptocurrency.
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