Elbaite Review (May 2022): Why We Don’t Like It

May 3, 2022
Reviews

Elbaite is a non-custodian, no-fee, Person-to-Person (P2p) crypto trading platform, based in Melbourne Australia. Elbaite offers a free platform to sell your crypto, but it has a limited coin offering of just 25 coins, and lower liquidity than some of the larger exchanges.

Instead, I recommend Swyftx, Digital Surge or CoinJar, since they all offer more features and charge lower fees for both buying and selling crypto. For the best possible crypto trading experience, Australians can’t go wrong with any of these three platforms.

What Is Elbaite?

Founded in 2017 by Samira Tollo, Elbaite is a Melbourne-based, Australian Person-to-Person (P2p) cryptocurrency trading platform. Thanks to its decentralized nature – connecting buyers and sellers directly, without ever acting as custodian of crypto assets – Elbaite can offer very low fees and a very secure environment, virtually unhackable, as all transactions are directly between buyers and sellers.

Elbaite was one of the first P2p exchanges to implement an escrow system combined with a blockchain-verification system. By directly checking the blockchain, Elbaite can make sure crypto assets are actually transferred, before releasing the escrow funds – this way bad actors can never play the system and take advantage of chargebacks or steal users’ cryptos. 

Elbaite doesn’t charge any fees for crypto sellers, and for buyers, it’s a flat 1% fee. It also offers a VIP program for OTC or high-volume traders, with even lower fees, and it accepts Osko, PayID, and BSB & Account Number as payment methods.

To start off this Elbaite review, let’s take a deeper look at Elbaite’s pros, cons and features.

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    I bought my first cryptocurrency (Bitcoin) in 2013, bought Ethereum in 2017, and have held active accounts with at least 5 exchanges since 2018.
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Elbaite Pros & Cons

Elbaite Pros

  • Buy and sell BTC on P2p markets
  • No-fee crypto-to-fiat conversion
  • Very secure non-custodial platform
  • Your crypto assets never leave your wallet
  • Supports 25 of the largest cryptocurrencies
  • VIP customer support for BTC and OTC traders
  • Australia-based P2p Decentralized Marketplace

Elbaite Cons

  • Lower liquidity than some of the biggest exchanges
  • Only accepts AUD as fiat (no USD, EUR, etc.)
  • 1% fee when buying crypto
  • Doesn’t have a mobile app
  • Limited coin support (25)

Elbaite Features

1. Elbaite’s Low Fees For Sellers

Elbaite functions as a non-custodial crypto exchange platform, meaning your crypto never leaves your wallet. Since all trades in Elbaite occur Person-to-person (P2p), Elbaite can get away with not charging fees. In fact, Elbaite users don’t pay deposit, withdrawal, or trading fees – instead, Elbaite charges a flat 1% one-time fee for facilitating the trade and for using the escrow system – this fee is charged to the buyer.

2. Security Features

Elbaite’s P2p purchases and payments are secured with an escrow system. The process is very simple; the buyer first sends the AUD to Elbaite’s escrow bank account, based on an Australian bank. The fiat currency is held safely until the crypto is sent and the transaction is verified as irreversible on the blockchain.

After depositing the crypto in escrow, Elbaite confirms the deposit and notifies the seller. After the seller sends the crypto, Elbaite releases the AUD to the seller. Elbaite is considerably more secure than centralized exchanges, and it is virtually immune to hacks – this is because Elbaite doesn’t hold any crypto assets. Keep in mind buyers can use one of the three supported payment methods: PayID, Osko, or Mobile Payment.

Additionally, Elbaite is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and complies with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.

3. OTC VIP Support For High Volume Traders

High-volume Bitcoin traders have the option to participate in Over-the-counter (OTC) trading, an exclusive VIP service that comes with many benefits. Some benefits include lower fees for buyers, higher liquidity, expedited transactions, and lower slippage, as your order is given top priority.

3. Excellent Customer Support

Elbaite offers customer support via email, and their customer service reps are actually helpful rather than just following a script. It takes just a couple of minutes for the customer service reps to reach out, and they’re actually helpful rather than just following a script. You can reach out to them through:

  • Email: support@elbaite.com.au
  • Support page: Via the Help Center on their webpage
  • Live chat: Not available

If you have any questions about Elbaite’s media platforms you can send them an email to media@elbaite.com.au.

4. Sell Your Crypto For Free

Elbaite is one of the very few exchanges that doesn’t charge any fee for sellers – as a seller, you can list any of the supported cryptocurrencies without paying any additional fee. Elbaite doesn’t charge spreads either. The buyer pays a small fee of 1% on top of the purchase to cover for the costs of the transaction and the escrow service. 

5. Instant Account Verification

To sign up with Elbaite, you just need to provide your name, date of birth, address, phone number and email address. Most users won’t have to upload a photo or a video and can get verified in minutes. A small number of users may have to upload an additional identification document like:

  • Driver’s Licence
  • Passport
  • National Identity Card

Cryptocurrencies On Elbaite

Elbaite supports over 25 different cryptocurrencies. Here are some of the most popular:

Bitcoin (BTC)Ethereum (ETH)Polygon (MATIC)
Dogecoin (DOGE)Dai (DAI)Litecoin (LTC)
Bitcoin Cash (BCH)ChainLink (LINK)Uniswap (UNI)
Stellar (XLM)EOS (EOS)Dash (DASH)
Curva DAO token (CRV)Enjin Coin (ENU)Compound (COMP)
Yearn.finance (YFI)Sushi (SUSHI)Balancer (BAL)
Basic Attention Token (BTC)0x (ZRX)Power Ledger (POWR)

Elbaite Fees

  • Seller Fee: Free 
  • Buyer Fee: 1% (In addition to the price of the purchase)
  • Spread: Free
  • Deposit Fees AUD (PayID, Osko): Free
  • Withdrawal Fees AUD (PayID, Osko): Free

3 Exchanges I Recommend Over Elbaite

Elbaite isn’t a bad exchange, but it’s also not the best in Australia. Due to its low liquidity, lack of a mobile app, and limited coin offerings, I recommend any of these three exchanges instead, over Elbaite

  1. Crypto.com: With trading fees of just 0.4%, quick deposits and withdrawals, and best-in-class customer support, there’s no questioning why Crypto.com is one of the most popular exchanges in Australia. Get your $10 signup bonus with Crypto.com here.
  2. Digital Surge: With 250+ coins available to trade, trading fees of just 0.1% – 0.5% (depending on the volume traded), and a well-rated mobile app, Digital Surge is a great second option if you don’t want to use Crypto.com. Sign up with Digital Surge here.
  3. Swyftx: With zero deposit and withdrawal fees, instant account verification, and a beautiful website and app, Swyftx is smooth every step of the way. Sign up with Swyftx here.

In Summary

Elbaite is a non-custodian, no-fee, Person-to-Person (P2p) crypto trading platform, based in Melbourne Australia. Elbaite offers a free platform to sell your crypto, but it has a limited coin offering of just 25 coins, and lower liquidity than some of the larger exchanges.

Instead, I recommend Swyftx, Digital Surge or CoinJar, since they all offer more features and charge lower fees for both buying and selling crypto. For the best possible crypto trading experience, Australians can’t go wrong with any of these three platforms.

Elbaite FAQs

Is Elbaite Safe & Secure?

Yes, trading with Elbaite is completely safe and secure. Elbaite is registered with the Australian Securities and Investments Commission (ASIC) and is partnered with Vix Verify, a leading KYC Verification service provider. Keep in mind none of the information used to verify your account is stored or used for any commercial purpose.

Is Elbaite Legit?

Yes, Elbaite is legit. It uses a Secure Sockets Layer (SSL) protocol to establish a secure connection between users’ computers and the web platform, and it has over 3,500 monthly users.

Is Elbaite Legal In Australia?

Yes, Elbaite operates legally in Australia. It is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), follows all Australian Financial Regulations, and is compliant with the Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF).

Does Elbaite Verify Accounts Instantly?

Yes, Elbaite does verify some accounts instantly; unlike most exchanges out there, you don’t need to upload any photos. Keep in mind in some very rare cases they may ask you to provide additional documentation; in those cases, verification may take up to a day. Some of those documents may include:

  • Driver’s Licence
  • Passport
  • National Identity Card

Is Elbaite Good For Australians?

Elbaite is a decent exchange for Australians, though if you’re looking for the best overall trading experience, I recommend using Swyftx, Digital Surge or CoinJar instead. Each of them offers quite a bit more than Elbaite, and I’m confident you’ll have a better experience with them. 

How Well Is Elbaite Reviewed On Reddit?

Reddit’s review of Elbaite is uncertain: some Redditors have good things to say, while others don’t. Of course, Redditors are known for their brutally honest opinions, so take what they say with a grain of salt. 

Can I Buy Dogecoin With Elbaite?

Yes, you can buy Dogecoin with Elbaite. If you want to buy Dogecoin with lower fees, though, I suggest using Swyftx, Digital Surge or CoinJar instead.

Is Elbaite Insured?

No, Elbaite’s crypto is not insured – and it doesn’t need to be, as it is not a crypto custodian. 

Elbaite Referral Code

Elbaite does not currently have any referral or promo codes because they aren’t offering a signup bonus. If you want a signup bonus, you can get a $30 bonus from Swyftx, a $40 bonus from Digital Surge, and a $25 bonus from CoinJar.

Does Elbaite Report To The ATO?

Yes—as a digital currency exchange provider registered with AUSTRAC, Elbaite is required to report to the Australian Taxation Office (ATO). Users must also report their crypto trading activity to the ATO when filing their taxes at the end of the year.

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