Elbaite Review 2023: A Peer to Peer Crypto Exchange

Elbaite is one of the leading Australian-based crypto exchanges that offer a Peer-to-Peer marketplace for users to buy and sell 23 digital currencies with other traders. The platform is non-custodial meaning that Elbaite does not store or hold cryptocurrencies at any given time. In this review, we will break down how Elbaite works, and examine the advantages and disadvantages of its features.

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Our Takeaway

Exchange Name	Elbaite
Core Services	Peer-to-Peer (P2P) crypto trading
Available Cryptocurrencies	23
Fiat Gateway	AUD
Deposit Options	PayID, bank transfer
Deposit Fees	None
Trading Fees	1% for buyer
Withdrawal Fees	None
Mobile App	No

What Is Elbaite?

Elbaite is an Australian-owned and operated non-custodial cryptocurrency exchange that provides Peer-to-Peer (P2P) trading services in the crypto industry. The platform was founded in 2017 by Mortaza Tollo and Samira Tollo who wanted to provide a digital currency trading service to overcome common problems and stigmas in the P2P industry. These included the safety of meeting people in person and exchange of money, fraud, slow payment methods, and limited selection of cryptocurrencies. Elbaite aims to help transition the cryptocurrency industry to a safer way of P2P trading.

Since Elbaite is a non-custodial exchange that facilitates trades between individuals, users have complete control and custody of their cryptocurrencies, crypto wallets, and keys.

Pros & Cons

How Does Elbaite Work?

Elbaite utilizes a decentralized P2P framework to facilitate the buying and selling of cryptocurrencies between individual traders. Simply put, Elbaite provides a secure marketplace where sellers can list their crypto for buyers to purchase. Buyers are able to select the digital asset they want to purchase and view the available listings. Transactions between traders are completed in the steps below:

1. A seller posts their crypto for sale on Marketplace.
2. A buyer purchases the listed crypto by depositing AUD. The AUD funds are temporarily held in an escrow Australian bank account.
3. The seller transfers the crypto directly to the buyer’s wallet.
4. Elbaite releases the AUD into the seller’s bank account once the crypto is received.

Being a non-custodial exchange, Elbaite does not hold or store any digital currencies and crypto is directly sent to the user’s external wallet. Elbaite is the only platform where Bitcoin and Ethereum can be sold for AUD for free.

Top Elbaite Features You Should Know

Peer-to-Peer Marketplace

The Elbaite P2P Marketplace is presented in an organized fashion that allows traders to easily buy and sell 23 cryptocurrencies. Users can select a supported coin to show the available buying and selling listings for that particular asset. For ease of use, available listings can be sorted by price, amount, or by how responsive the individual trader is in terms of the time to send payment or crypto to the nominated wallet address.

An important aspect of any P2P marketplace is the trading reputation of buyers and sellers. The Elbaite platform allows users to review key details about the trading history of the seller including total trade volume, number of completed trades, number of interactions with different users, and average payment times. This feature allows users to build trust with other traders.

Escrow Bank Storage

Escrow Bank Storage

Chargeback fraud occurs when one party does not deliver their part of the transaction and keeps the asset and its payment by contacting the financial institution to reverse the transaction. To mitigate chargeback fraud, Elbaite temporarily stores AUD funds in an Australian escrowed bank account.

Once a buyer initiates a trade, the buyer’s AUD fund is temporarily held by Elbaite in an escrowed Australian bank account. The funds are securely stored until the seller fulfills their end of the transaction by transferring the crypto into the buyer’s nominated wallet address.

Supported Cryptocurrencies

Other P2P cryptocurrency exchanges typically only offer one or two cryptocurrencies to trade with other users. Elbaite supports the trading of 23 digital currencies including Bitcoin, Ethereum, Litecoin, and Dai. Whilst this is a greater offering compared to other P2P exchanges, the selection is too small for investors who want access to coins that are not listed.

Investors and traders who want to trade other cryptos such as Cardano, Solana, or Tether, will need to use a traditional crypto platform that supports a wider range of tradeable assets. Examples that are available for Australians to use include Swyftx, Digital Surge, and CoinSpot.

Is Elbaite Legit?

Elbaite is a secure and trustworthy P2P crypto exchange. Whilst Elbaite is not a traditional crypto exchange, it is still registered with AUSTRAC and is licensed to operate in Australia as a platform for its users to buy and sell crypto. The exchange is compliant with AML/KYC requirements set out by AUSTRAC, and individuals must verify their identity before buying or selling digital currencies on Elbaite’s platform.

Elbaite Security Measures

Elbaite is Australia’s first non-custodial cryptocurrency exchange which means that it does not hold or store digital currencies in hot or cold wallets. As the majority of crypto losses occur from security breaches of an exchange’s storage, Elbaite eliminates that possibility by not storing any digital assets. 

Elbaite does not share user personal information or bank details with any third party ensuring that the privacy of its customers is upheld.

Elbaite Fees

Given the non-custodial nature of the Elbaite platform, zero fees apply for deposits and withdrawals. No fees apply for individuals selling cryptocurrencies including Bitcoin and Ethereum which is a key selling point for Elbaite. However, a flat 1% trading fee applies for individuals who buy crypto. This is considered to be relatively high compared to traditional exchanges such as Binance which offer trading fees as low as 0.1%.

Supported Countries

Elbaite is an Australian-owned and operated platform that is only available to users residing in Australia. Additionally, Elbaite does not support the deposition of funds from non-Australian bank accounts. Investors and traders located in other countries around the world will need to find a P2P exchange that supports their local fiat currency.

Getting Started With Elbaite

Account Creation & Verification

Creating an Elbaite account will require a valid email address and a strong password. Since Elbaite is an AUSTRAC registered crypto exchange, all users must complete the Know Your Customer (KYC) process before crypto can be purchased or sold. ID verification can be completed in 5 minutes by providing brief personal details. Copies of government-issued documentation (e.g. passport, driver’s license) is not required, and users do not need to complete a facial recognition check. 

Deposit Methods & Limits

Elbaite supports near-instant deposits of Australian Dollars (AUD) using PayID, OSKO, and direct transfers from an Australian bank. Deposits or transfers of fiat currencies from international bank accounts are not supported.

The User Experience

Traditional cryptocurrency platforms like Swyftx or Digital Surge will automatically find the best available price of a trading pair. The P2P nature of the Elbaite platform differs in that it presents the prices for each coin that a seller has listed. Therefore, the number of available trades is limited by the number of sellers who list their assets for sale, and the number of buyers who complete purchases. A downside of this is that the list of offered crypto may not be available at the desired price point. Additionally, crypto listed for sale can potentially be outdated if the market price changes.

Beginners who are new to cryptocurrency may find the prices daunting and the level of trust with the seller may not be there to complete a trade. Crypto listed for sale can potentially be outdated if market conditions change so there is a risk for beginners to pay more than they should if the market price drops. Beginner investors and traders would be best served to buy and sell digital currencies with an established and reputable crypto exchange where transactions are completed almost instantly.

Customer Support

Avenues to customer support on the Elbaite platform are limited. Customers experiencing difficulties can contact the Elbaite team via the submission of a ticket. There is no live chatbot or phone desk to call for immediate assistance. 

Elbaite Alternatives

Elbaite is a leading decentralized P2P crypto exchange that is suited for high-net traders. In our opinion, the platform is not suitable for novice traders. The following exchanges offer almost instant transaction times, lower fees, and a wider selection of tradeable cryptocurrencies.

• Swyftx (best Australian exchange overall) – Swyftx is our best-rated cryptocurrency exchange that is available for Australian investors and traders. The platform has a wide variety of features including a well-designed user interface, deep liquidity, low spreads, DCA, and advanced trading tools. The platform also supports more than 270 digital assets which are significantly more than Elbaite.
• Digital Surge (best for beginners) – Digital Surge is a beginner-friendly platform with low trading fees (0.5%), more digital assets are supported (270+), and it provides a few innovative features including in-built tax tools and the ability to pay Australian bills with Bitcoin. Digital Surge supports Australian investors.
• Bitaroo – Bitaroo is Australia’s largest Bitcoin-only exchange and offers a beginner-friendly user experience and low trading fees.
• Independent Reserve (best for SMSF investors).
• Cointree (suitable alternative for beginners) – A solid choice for beginners and intermediate investors who don’t need advanced trading features.

Frequently Asked Questions

Does Elbaite Have A Mobile App?

Elbaite does not have an iOS or Android compatible mobile app for its customers to use. The website however is mobile-friendly.

Is There A Referral Program?

Elbaite users who successfully refer the platform to a new member receive a $5 reward. Additionally, users who trade in excess of $10,000 within a 30 day period will receive a free Trezor hardware wallet.

Based on our review, the Elbaite platform is unique in that it provides a simple way of buying and selling crypto on a decentralized P2P framework. Elbaite is seen as beneficial for high-net traders who want to take advantage of the extra security and peace of mind the P2P framework offers. Whilst the interface is easy to use, the platform is not considered suitable for beginners due to the nature of the P2P marketplace and the lack of trading options.

Our Verdict

Based on our review, the Elbaite platform is unique in that it provides a simple way of buying and selling crypto on a decentralized P2P framework. Elbaite is seen as beneficial for high-net traders who want to take advantage of the extra security and peace of mind the P2P framework offers. Whilst the interface is easy to use, the platform is not considered suitable for beginners due to the nature of the P2P marketplace and the lack of trading options.