Even with so many different exchanges for Bitcoin and other cryptocurrencies, Poloniex remains a leader. It has been in the industry for several years and has all the features that traders search for. This is also one of the few exchanges based in the United States. Poloniex prides itself on offering advanced trading features and maximum security.
Poloniex launched in 2014 and is based out of Wilmington, Delaware, in the United States. It was very recently acquired by Circle, a large Goldman-Sachs backed company which is great news for Poloniex and it’s users and indeed, Cryptocurrency in general. With Circle as the new owners they aim to make Poloniex the first regulated Exchange by registering with the SEC and FINRA as a broker / dealer. They also have plans to expand the exchange into the Asian market.
Poloniex is consistent in having the top trading volumes for altcoins, such as Litecoin. The exchange also has an exceptional number of trading pairs. While some platforms allow you to exchange cryptocurrency with fiat currencies and vice-versa, that is not the case for Poloniex, which deals solely in cryptocurrency.
Who Is Poloniex Designed For?
Those who are new to the cryptocurrency world or want to buy their first Bitcoin or Altcoins may find Poloniex a little daunting at first. As mentioned, the exchange deals only with cryptocurrency, so you cannot make your first crypto purchase via this exchange. Additionally, the layout and features that the exchange includes are more geared toward experienced traders than those new to the idea of cryptocurrency. There is also no mobile app, making Poloniex somewhat challenging to use on the go, although it does have a mobile-friendly website.
What Features Will Traders and Developers Appreciate?
There are many features on Poloniex that experienced traders will appreciate. You can find a range of efficient data-analysis tools, along with very detailed charts that let you make educated decisions regarding trades. The high-volume nature of Poloniex also appeals to traders, particularly the ability to do lending and margin trading.
Traders with coding knowledge will appreciate that most of the trading interface code is executed on the client side, meaning it is open source and you can examine it to learn more about how Poloniex works. Developers will also appreciate the fact that the API is available. This makes it possible to create tools for managing accounts and analyzing data to get the most of out of Poloniex.
Where Can You Use Poloniex?
The platform for Poloniex is based within the United States, but anyone can use it as long as their country does not have laws prohibiting the exchange of cryptocurrency. Because Poloniex only uses cryptocurrencies without any fiat currencies, it does not need to meet finance and banking regulations. That means that you are unlikely to come across legal restrictions preventing the use of Poloniex in your country.
What Cryptocurrencies Does Poloniex Accept?
Most users are drawn to Poloniex because of its high number of trading pairs. At the time of writing, the exchange had 97 trading pairs, making it very likely that you will be able to trade the cryptocurrencies that you want. The only downside is that you must make your deposits in cryptocurrency, without the option of a credit card or bank transfer.
To make up for this, however, you can store the value of your deposit in USDT, a Tether cryptocurrency that is directly linked to the USD. Therefore, 1 USDT should always be about $1 USD. This feature gives some peace of mind to traders who have concerns about the volatility of the cryptocurrency market.
How Do You Create an Account?
Creating an account on Poloniex is relatively simple, particularly in comparison to other exchanges. Because Poloniex only uses cryptocurrencies and no fiat currencies, the lack of regulations it must follow allows the exchange to make the signup process easier and less invasive. Users can only make one account, and exceeding this number can cause you to be suspended or expulsed from the platform. When you create an account, you get access to all the services, including exchange, lending, and trading.
Although Poloniex is not best for beginners in that there is no way to buy crypto from fiat currency, its user interface is very straightforward for those of all levels.
Beginners should first purchase cryptocurrency such as Bitcoin from an exchange like Coinbase, then send that to Poloniex for trading.
What Account Verification Levels Are There?
Despite the lower fees for those who trade high volumes of BTC every day, you should keep in mind that you cannot withdraw over $2,000 a day with Poloniex if you stick to the first verification level. This can be an obstacle depending on the volume that you regularly trade. That verification level only requires you to input your name, email, and your country of residence. This verification still allows you to exchange, lend, and trade.
Two-level verification requires your physical address, postal address, date of birth, passport, and phone number. You must actually upload the ID and passport photos. Once approved, your limits for withdrawals and deposits increases to $25,000.
There is a higher level of verification available for those who need an even higher limit, but you must contact support directly to reach that verification.
How to Trade on Poloniex?
It is very simple to trade on Poloniex. Begin by ensuring you have deposited enough funds in your account. Certain coins require a minimum deposit, which you can check before trading. Once you are ready to trade, select the appropriate tab on the markets. Select the tab of the cryptocurrency you want to use, then select the trading pair.
From there, you can choose to buy or sell by inputting your desired price plus coin quantity. You have the choice of manually entering an amount, selecting the lowest ask price, or choosing an order from the “order book.” Hit “Buy,” and the system will automatically search for a counter-party.
It will be filled or go into the “order book” to wait if there is not a matching request from another user. Once it fills, you can view it in Trade History.
Does Poloniex Offer Margin Trading?
Poloniex is a leader with its margin trading. This feature on the platform is quick and efficient to use with peer-to-peer functionality for borrowing funds and beginning to margin trade. You can use the platform to secure trading funds and work with other traders via the lending features.
Is Poloniex Safe?
Poloniex takes care of security in multiple ways. To keep hackers out, it stores the majority of customers’ deposits in air-gapped cold storage offline. It makes an effort to only keep sufficient funds online to make active trading simple and seamless, something that minimizes exposure and risk without any negative effects for the traders.
The exchange also has auditing programs that work constantly, 24/7/365. These programs monitor the activity with the goal of spotting suspicious activity. If anything is spotted, the programs report then block it before it develops into a problem.
There was one minor security breach, and following that, Poloniex gave the affected users a full refund, indicating that it is fair when handling this type of unforeseen situation. This did take place back in 2014, when the exchange was still new. However, no breaches have been reported since then, relieving concerns that this will happen again.
There is no concern about Poloniex using your money. A key differentiator between the exchange and banks is that it will not operate using fractional reserves. Any funds that you put on the exchange are yours, not those of Poloniex. Those funds are just used for facilitating trades via your account, nothing else.
For additional security, Poloniex offers two-factor authentication. This dramatically reduces the risk of hackers accessing your account, and every user should take advantage of it. To further improve security, avoid keeping large amounts of money on the exchange for an extended period of time, instead moving the funds to a cold hard wallet that you control.
To keep running and make a profit, Poloniex must charge some fees, just like any other exchange. However, the team does try to minimize these fees so you can keep as much of your money as possible. It has maker-taker and volume-tiered fee schedule. Users can view their Trading Tier Status on their account page to see which level they are at. As expected, the greater your trading volume, the lower your fees.
When looking at the fees, makers are those who create an order within the order book before the trade. Takers place an order that matches the maker’s order, something known as “taking the order.” Makers get their name by “making” the market liquidity, while takers remove this liquidity. Poloniex opted for this model because it encourages market liquidity. This occurs because maker fees are less than those for takers, giving those who create market liquidity a financial boon. The taker’s higher fee is typically offset by improved pricing thanks to the tighter spread as makers aim to outbid each other.
|Maker||Taker||Trade Volume (trailing 30 day avg)|
|0.15%||0.25%||< 600 BTC|
|0.14%||0.24%||≥ 600 BTC|
|0.12%||0.22%||≥ 1,200 BTC|
|0.10%||0.20%||≥ 2,400 BTC|
|0.08%||0.16%||≥ 6,000 BTC|
|0.05%||0.14%||≥ 12,000 BTC|
|0.02%||0.12%||≥ 18,000 BTC|
|0.00%||0.10%||≥ 24,000 BTC|
|0.00%||0.08%||≥ 60,000 BTC|
|0.00%||0.05%||≥ 120,000 BTC|
The trading volume is calculated every 24 hours and based on the past 30 days, combining margin and spot trading. As of the time of writing, makers with a trading volume under 600 BTC would pay 0.15 percent, while takers would pay 0.25 percent. For volumes over 600 BTC, these reduce to 0.14 and 0.24 percent, respectively. The other tiers begin at 1,200, 2,400, 6,000, 12,000, 18,000, 24,000, 60,000, and 120,000 BTC. Traders with a volume of over 12,000 BTC already pay only 0.05 percent as makers and 0.14 percent as takers. At 24,000 BTC, maker fees disappear completely and taker fees are just 0.1 percent. The lowest possible taker fees are 0.05 percent, for those with trading volumes over 120,000 BTC. Lenders also have a 15 percent fee on earned interest.
At the time of writing, the 24-hour volume of Poloniex was 11,075 BTC, 1,887 ETH, 451 XMR, and 54,291,370 USDT. As mentioned, there are 97 trading pairs. The trades within 24 hours are listed at more than 33,972,742 on industry websites.
Poloniex Customer Support
One of the areas where Poloniex has a less-than-stellar reputation is customer service. You can easily find multiple tales online of extremely long wait times, with the occasional user reporting having to wait 90 days (or more) to resolve their issues. The problem does not seem to be that Poloniex does not want to provide customer service, merely that the demand for it is much too high. This is expected in an industry that is constantly growing at such a high rate, but users still wish that the speed of customer support was improved.
To make up for the slow support times, there is plenty of documentation on the Poloniex website, particularly the Support Center. There, you can find answers to the most common questions, such as the basics, a guide to trading, fees, adding coins, the API, and more. You will find specific sections on the frequently asked questions page for getting started, two-factor authentication, deposits, withdrawals, and getting support. Because of those resources, you are unlikely to need to contact customer support, unless you have a technical issue.
Poloniex Customer Reviews
As with any exchange, the reviews of Poloniex are generally mixed. The slow customer support response results in low reviews, and some traders cite issues with liquidity and withdrawing funds. There are multiple reports of having to wait for an approval on a withdrawal request for a long time, with no timeline to even suggest when approval will come. Traders also dislike the inability to withdraw in fiat currency, but they can easily get around it with another exchange.
Despite these issues, traders continue to return to Poloniex because of its useful trading tools, high trading volume, and large number of pairs. They also appreciate the additional features, such as margin trading, something that is rare even in the growing field of crypto exchanges.
For those who want a reliable exchange with an industry-leading number of cryptocurrency pairs and additional features, such as margin trading, Poloniex offers an excellent option. Those who choose to use it just have to be prepared to deal with a long wait for any customer support and be aware that they can only deposit and withdraw using cryptocurrency. Because of the large trading volumes on Poloniex, you can assume that it will operate smoothly for most of its functionality.
Customer support can be a problem with slow response times, this seems to be a problem widespread within all cryptocurrency exchanges and it is something which needs to be addressed if crypto is to truly go mainstream. With large sums of money at stake it is unacceptable to wait days or even weeks for a reply to support tickets.
With the recent acquisition by Circle, you can be assured that the exchange is in good hands and will be complying with all the relevant rules and regulations so this should give you confidence to trade on this exchange.
eToro Risk Warning: 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
- Margin Trading Options
- Range of Markets
- Clear and low fee structure
- High Volume Exchange
- Trustworthy & Secure
- Not for Beginners
- Support can be slow
- No Fiat Payment Options Yet
- No Mobile App
- No Phone Support
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