Elbaite review

By   |   Verified by David Boyd   |   Updated 4th March 2022

Elbaite Review
  • Elbaite is a cryptocurrency exchange specifically designed for Australian traders.
  • It was developed to allow traders access to a high level of security and simplicity.
  • Elbaite is marketed as the only cryptocurrency exchange where you can sell Bitcoin (BTC) free of charge.

There are many cryptocurrency exchanges, and traders are constantly on the hunt for advanced exchanges that offer them solid features and fair fees. Elbaite attempts to give a high level of security and accessibility, and free Bitcoin sales to traders — one of the key things that make it stand out from other exchanges.

Are you considering Elbaite as your go-to option in terms of trading cryptocurrencies? We take a deep dive to go over all the options Elbaite offers and discover why it might be a solid fit for your needs.

What is Elbaite?

Elbaite is a cryptocurrency exchange that provides direct access to cryptocurrencies such as Bitcoin with AUD. It was founded in 2017 in Melbourne, Australia, and has had the main goal of creating a peer-to-peer (P2P) exchange that represents the decentralised characteristics of blockchain technology.

Is it safe?

Elbaite Pty Ltd (ABN 88 623 185 875), the company that owns and operates the exchange, is registered with AUSTRAC and complies with KYC/AML obligations, with the goal of preventing any money laundering or financing of terrorism.

Interestingly, Elbaite was co-founded by brother and sister duo Mortaza Tollo and Samira Tollo. In an interview with SmartCompany, Samira revealed how Elbaite came to be:

Mortaza, a cryptocurrency trader, approached her with a trading model to solve many of the problems he had encountered through his experience in trading. Tollo worked on the business while she was studying, and in October 2019, they officially launched Elbaite.

The founders have successfully raised capital to fund their growth, something they've openly discussed. This is a legitimate company with non-executive board oversight.

As for your crypto, one of Elbaite's key differentiators is that they do not store your crypto — at all — since it operates on a P2P basis, i.e. they facilitate the marketplace. In comparison, exchanges like Binance and KuCoin store your crypto on their servers (both of which have been hacked).

Many exchanges use cold storage facilities, which are more secure since they are disconnected from the public web. Increasingly, exchanges are also insuring digital assets in their custody. Even so, hackers have compromised several prominent exchanges and stolen assets. None of this applies to Elbaite since your crypto assets remain in your wallet.

Elbaite protects traders from bad actors and fraudulent transactions by holding funds in escrow until they have verified that the assets have been transferred from the seller to the buyer by checking the token's blockchain, which, as we all know, is immutable.

Who is Elbaite aimed at?

Elbaite is specifically aimed at intermediate and experienced traders in Australia who are looking to save on fees. If you are new to crypto, this may not be the ideal starting point.

Listed coins

Elbaite supports the following cryptocurrencies: Bitcoin, Ethereum, Dogecoin, Litecoin, Uniswap, ChainLink, Bitcoin Cash, Stellar, Dai, EOS, Enjin Coin, Basic Attention Token, Curve DAO Token, Dash, Compound, OMG Network, yearn.finance, Ox, Sushi, Power Ledger, Balancer, Silver Standard, Gold Standard, and plans to implement the Energy Web Token Bridged.

In terms of tradable assets, Elbaite is somewhere between the likes of Independent Reserve, which only lists "serious" coins, and exchanges like Digital Surge and Swyftx, both of which list substantially more coins.

Setting up your account

On Elbaite, you can either create an individual account or a professional account. As a trader on your own, you will likely start the individual’s registration process.

Here, you will enter your username, password, and referral code. Additionally, you will be required to complete the Know-Your-Customer (KYC) verification process before you can deposit funds.

Funding your account

When you make a deposit, since it's a peer-to-peer exchange, the funds in AUD are deposited to the exchange and held in a secure escrow fund, which is kept safe until both parties confirm the transaction. No funds are held on the Elbaite platform itself. PayID is supported.

Fees and limits

Buyers pay a 1% trading fee for all trades conducted on Elbaite. This fee is charged in addition to your purchase. However, Elbaite does not charge any commission or fees for selling cryptocurrencies; only the buyers are charged 1%.

Useful features

  • Sign up bonus. There's the sign-up bonus, where you invite a friend and both receive $5.
  • Buy and sell BTC and ETH for free. Additionally, it is the only exchange where you can sell Bitcoin and Ethereum for free.

Pros and cons

Pros

  • Based in Australia, and AUSTRAC registered.
  • Peer-to-peer (P2P) decentralised marketplace. You own the keys.
  • 0% fees to convert BTC or ETH to AUD.
  • The exchange does not store any assets, leading to a higher security level.

Cons

  • Liquidity is directly dependent on the willing buyers and sellers.
  • Relatively limited choice of coins listed. If you want to trade altcoins, Elbaite is not for you.

Alternatives

There are many alternative exchanges, both Australian and international, to choose from. These are some of the top options.

  • Swyftx. This Australia-based exchange provides investors with a built-in wallet and easy-to-use interface.
  • CoinSpot. This is an exchange that gives traders and investors access to buying, selling, and trading more than 100 cryptocurrencies.
  • Cointree. Cointree is another cryptocurrency exchange based in Australia and has been on the market since 2013. It is fully regulated and well-established.
  • Coinbase. Coinbase is one of the largest US-based cryptocurrency exchanges. It allows traders to easily buy, sell or trade different types of cryptocurrencies.
  • Kraken. Kraken is a cryptocurrency exchange that is a well-established option in the market and has a wide selection of tokens available for all traders.

FAQs

What kind of wallet do I need to receive my assets?

All the cryptocurrencies available on Elbaite are on the Ethereum and Bitcoin blockchain, so any wallet that supports these token standards will work perfectly on the exchange.

Which banks can I use?

A majority of banks that are based in Australia can be used with your Elbaite account.

Does Elbaite have an app?

Currently, Elbaite does not have a native mobile application, but the website works as a web app when run from mobile devices.

Verdict

Elbaite is a solid cryptocurrency exchange for intermediate traders that are comfortable with using peer-to-peer exchanges. The 1% buyer fee and 0% seller fee is solid and competitive, and it has a higher level of security due to the fact that no funds are held on the exchange itself. It's based in Australia and puts a focus on that target demographic, where AUD is a supported currency, which is excellent if you are a trader living in Australia.