Elbaite Review: Is It A Good P2P Exchange In Australia?
Last Updated on December 24, 2023 by Kevin GrovesIf you’re an experienced trader looking for a leading Australian crypto exchange to trade directly with other traders then Elbaite might be for you. The Melbourne-based Peer-to-Peer (P2P) marketplace provides excellent security features to ensure a sound level of consumer confidence. Keep reading to see if Elbaite is the right option for you and your money.
Elbaite
Trading fees:
1% for buyers
Number of cryptos:
24
Deposit methods:
Bank transfers, PayID
Supported countries:
Australia
Promotion:
None available at this time
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Quick Overview
Here is a quick summary of the exchange information.
| Exchange name | Elbaite |
| Supported countries | Australia |
| Fiat currencies supported | AUD |
| Deposit methods | Bank transfers, PayID |
| Supported cryptocurrencies | 24+ |
| Deposit fees | None |
| Trading fee | 1% for buyers, none for sellers |
| Mobile app | No |
The Bottom Line
Elbaite is one of Australia’s few Peer-to-Peer (P2P) crypto exchanges that is locally owned and operated. The Melbourne-based trading platform has done a good job of providing a seamless marketplace where buyers and sellers can come together and direct trade with each other.
The implementation of an escrow service helps to alleviate any concerns buyers may have about the fulfilment of a crypto transaction. With bank transfers (OSKO) and PayID as the supported deposit methods, sellers in turn know they will instantly receive payment.
However, Elbaite may not be suitable for individuals new to the crypto space as they may be overwhelmed by the advertised prices and could potentially pay too much. Likewise, institution investors buying large amounts may not get the value for the money they seek.
What we liked:
- A simple-to-use and visually pleasing interface.
- Seller trust profiles.
- Escrow service to mitigate chargeback fraud.
What we didn’t like:
- No mobile app – desktop only.
- Relatively expensive 1% fee for buyers.
What Does Elbaite Do?
Elbaite is a 100% Australian-owned and operated Peer-to-Peer (P2P) marketplace. Established in Melbourne in 2017, Elbaite provides a secure platform where traders can buy Bitcoin and 23 other digital currencies as well as sell directly with each other.
The non-custodial nature of Elbaite means that it does not store cryptocurrencies on behalf of anyone else at any point in time during a transaction. As such, you have complete control over your digital assets as Elbaite simply facilitates the transaction.
Elbaite is a member of Blockchain Australia.
Pros & Cons
Pros:
Cons:
How Does Elbaite Work?
Elbaite is a non-custodial marketplace where traders can conduct P2P exchanges of fiat and crypto with other traders. This means that Elbaite provides a secure environment where sellers can advertise their digital currencies, and buyers can browse and make purchases from sellers. There is no involvement from Elbaite during the transaction process and it does not store digital assets at any time.
What We Think of Their Features
Has all the major cryptocurrencies to trade
Elbaite currently facilitates the trading of 24 digital currencies including Bitcoin (BTC), Ethereum (ETH), Dai (DAI), Dogecoin (DOGE), Litecoin (LTC), Chainlink (LINK), and Bitcoin Cash (BCH). Although the list of supported assets is quite large for a P2P crypto exchange, some popular assets such as Solana (SOL) and Cardano (ADA) are not able to be traded.
If you want to have more choices when it comes to buying altcoins then you will need to seek a traditional crypto exchange or brokerage platform. In Australia, examples of reliable and trustworthy exchanges that support over 300 digital currencies include Swyftx (320+), CoinSpot (370+), Binance Australia (380+), and Digital Surge (310+).
It’s easy to use (good for beginners)
Elbaite doesn’t operate like other crypto exchanges or brokers since there is no middleman. Since Elbaite is a digital forum where traders can buy crypto from each other, there aren’t any other crypto products, services, or features to worry about. Once you understand how Elbaite works, then its easy to navigate around the platform.
To buy crypto from another trader using Elbaite, you will need to input your external wallet address. After browsing and finding a sale that you like, you can enter the amount of digital asset to buy, instantly deposit your AUD funds via bank transfer (OSKO) or PayID, and confirm the transaction.
Transactions between traders are completed in the steps below:
- A verified seller advertises their crypto for sale on the Elbaite marketplace.
- Buyers browse the listed crypto.
- The buyer purchases the listed crypto by depositing AUD via bank transfer or PayID. AUD funds are held for security purposes in an escrow bank account.
- The seller transfers the crypto directly to the buyer’s wallet.
- The escrowed AUD funds are released into the seller’s bank account once the crypto is received.
The escrow service gives peace of mind
Elbaite uses an escrow service to ensure a successful transaction. This means that Elbaite temporarily holds the buyer’s Australian Dollars that are intended to be used as payment for crypto, and releases them to the seller once the digital assets have been transferred to the buyer. This method of facilitating the transaction eliminates the potential for chargeback fraud.
If the seller does not transfer the purchased cryptocurrencies to the buyer’s personal wallet, then Elbaite will contact the bank that is holding the payment funds to cancel the transaction.
So, Is Elbaite Safe?
Elbaite is a safe and secure P2P crypto platform to use due to its non-custodial nature. Unlike other Australian crypto exchanges that will typically store 2% – 5% of their digital assets in hot storage (i.e. connected to the internet) and are therefore susceptible to hacks, Elbaite does not store any crypto at any stage. Instead, cryptocurrencies that you buy from traders who are selling are directly transferred to your personal wallet.
Elbaite uses an escrow service to temporarily hold your Australian Dollars (AUD) whilst your digital currencies are being transferred to your wallet. Once the transfer is confirmed, Elbaite releases the held AUD funds to the seller for payment.
Why We Think Elbaite Is Legit
We noticed that Elbaite is a legitimate and trustworthy crypto exchange that is registered with AUSTRAC to provide digital currency services. The Melbourne-based company is trading under Elbaite Pty Ltd (ABN 88 623 185 875) and has been doing so since 2017. Elbaite adheres to the requirements of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 by requiring its customers to submit basic personal details to complete Know-Your-Customer (KYC) procedures.
What Are The Fees on Elbaite?
Once you’re verified as a merchant, you can sell your digital currencies to buyers for free a Elbaite does not charge any selling fees. Buyers on the other hand, will be charged a flat fee of 1% of the transaction value. This is fairly high considering that trading fees for most Australian exchanges range between 0.1% to 1% excluding spreads and any third party fees. But since there are no fees for sellers, Elbaite is one of the best places to sell Bitcoin back to AUD.
How To Get Started?
Creating and verifying your account
Creating our account took less than a few minutes where an email address and password was required. Due to mandatory government regulations set by AUSTRAC, you will need to verify your identity before you can deposit any Australian Dollars as part of a purchase. Similar to other crypto exchanges, you can use your driver’s licence or Australian passport, and a facial recognition check is not required to be undertaken.
Payment methods
Elbaite caters to the majority of Australian crypto traders by supporting bank transfers (OSKO) and PayID as payment methods. By using these methods, Australian Dollars can be instantly transferred from Elbaite’s escrow service and into the seller’s bank account. Deposits or transfers of fiat currencies other than AUD are not supported.
What’s The Elbaite Trading Experience Like?
Traditional cryptocurrency exchanges and brokerage platforms will find the best price for the digital asset you want to buy or sell. Elbaite doesn’t perform this since it’s a non-custodial P2P marketplace that only facilitates transactions. Therefore, the liquidity of Elbaite is dictated by the number of buyers, sellers, and available trades for each digital currency.
The downside to this is that the crypto that you want to buy with AUD may not be available if no sellers are selling it. If it is, the advertised price may not be in line with market prices so there is the potential to pay too much.
In our opinion, Elbaite is not suitable as a starting point for beginners who are buying their first digital currencies. Even though Elbaite is a highly secure place to trade crypto, there is a level of trust required to buy crypto from someone you don’t know. Purchasing crypto through a standard exchange may feel safer.
The other key factor is the price point. Beginners can potentially pay too much (or too little) if market conditions and the prices of assets change rapidly. This potential problem is exacerbated for institutional investors who buy large amounts of crypto as small differences in price can result in significantly less value for money. Elbaite, and other P2P platforms, is best suited to experienced traders who understand the worth of various digital assets and prefer a stress-free trading experience.
Customer Support Is Lacking
In terms of customer support, Elbaite provides a relatively well-stocked Frequently Asked Questions (FAQ) page that covers a lot of topics for buyers and sellers. If all else fails, then there is a ticket system available where you can describe the issue at hand and wait for a response. There is no live chatbot or direct phone support.
Our Elbaite Final Verdict Is…
Elbaite has evolved into a robust and easy-to-use P2P marketplace that rivals those hosted by global crypto exchanges. At the time of writing (October 2022), the marketplace was active with numerous crypto listings across each of its 24 supported assets. There are many advantages for sellers, with the lack of selling fees the primary one, and the implementation of an escrow service should provide consumers with confidence that their transactions will be fulfilled.
However, consumer confidence with beginners is likely to be low as it may seem daunting to buy crypto from someone they don’t know. Moreover, if inexperienced buyers aren’t familiar with the current market price and worth of a listed digital asset, then they could be paying a lot more than they need to. Elbaite, and other P2P platforms, are best suited to experienced traders who understand the worth of various digital assets and prefer a stress-free trading experience.
Frequently Asked Questions
Elbaite currently does not offer an app for use on mobile devices. However, the website is mobile-friendly and relatively easy to access and use.
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.
Warren is the co-founder of CoinCryption. He has a passion for cryptocurrency and has been involved in this space for more than 7 years. His other love is digital marketing and has over 15 years of experience.