P2P exchanges have enabled people to exchange their cash for cryptocurrency, or vice versa, but they have major problems. Elbate.io is the next major upgrade of this fantastic model of trading. It aims to fix the major problems that currently exist within established P2P exchanges. Elbaite is helping the cryptocurrency industry to transition to a safer and better way to trade.
Problems with current P2P exchanges
1. Meeting and paying in cash
- There have been horror stories of people meeting in real life and exchanging money for cryptocurrency only to be robbed or assaulted. This is not recommended. Meeting in person and carrying a large sum of money is never advised. Even if it is in a public “safe space”.
2. Bank Transfers
- Banking details should always be kept private from strangers. But if you don’t want to risk meeting in person, then as a seller you must give out your Full Name, BSB, and Account Number to a complete stranger over the internet. This is extremely dangerous as it exposes you to fraud and theft.
- Another danger is scammers on P2P exchanges, such as localethereum and localbitcoins. They pretend to be innocent buyers and will even transfer you the money to your bank account. However, once they receive your crypto, they file a reverse transaction with their bank. They will claim their bank account got hacked, or they were scammed via a mechanism such as the infamous tax office telephone scams. Since most banks in Australia do not support cryptocurrency, the bank will usually side with the scammer and will reverse their payment out of your bank account.
3. Slow exchange
- P2P exchanges force users to chat to the other party, to agree on payment type, or meeting location. Also, bank transfers can take up to 3 days to clear. During this time prices of cryptocurrency can fluctuate heavily. Speed is everything in the highly volatile environment that is cryptocurrency.
4. Little choice of coins
- P2P exchanges only support 1 or 2 different cryptocurrencies, meaning you have to have multiple different accounts with multiple different exchanges to have access to a wide range of markets.
How is Elbaite different?
Elbaite’s escrow-powered trading means the buyer’s money is not paid to the seller until we verify that the seller has sent the cryptocurrency to the buyer’s wallet using the immutable ledger that is the token’s Blockchain. This ensures that sellers are always paid. Buyers always receive their cryptocurrency. And with PayID, deposits and payouts are quick.
On Elbaite, bank details are not shared with the other party. In fact, no personal details are shared with the other party. Not your real name, address, bank details or anything that can reveal who you are and increase your risk of fraud or theft.