You want to know What is Poloniex, the benefits of investing in this exchange. This guide will show you everything you need to know about the exchange, from how to use it to what to trade.
What is Poloniex?
Poloniex is a decentralized cryptocurrency exchange that allows users to trade a variety of digital assets on a secure and user-friendly platform.
The exchange was founded in 2014 by Tristan D’Agosta and has since grown to become one of the most popular cryptocurrency exchanges in the world. Poloniex offers a wide range of features including a robust API, advanced charting tools, margin trading, and more.
Poloniex is a cryptocurrency exchange with cheap trading costs and a list of over 350 supported coins.
Company Overview
Launched in Delaware, USA, Poloniex began in January 2014. Its founder is Tristan D’Agosta, who has a background in music and previously established the Polonius Sheet Music company in 2010.
Poloniex had a high-profile attack shortly after its introduction in March 2014, when it lost around 12% of its BTC, which was worth approximately USD 50,000 at the time. Despite this, the exchange’s management responded publicly to the attack, giving full refunds for the stolen 97 bitcoins from D’Agosta’s firm revenues.
In early 2018 Poloniex was acquired by payments company Circle, which reportedly aimed to transform it into America’s first fully regulated crypto exchange. The company paid USD 400,000 for the acquisitions.
2019 was another big year of changes for Poloniex exchange. Early in the year, the exchange faced challenges posed by the uncertainty in the U.S. cryptocurrency regulatory environment.
In November 2019, Circle spun out Poloniex into a separate entity, Polo Digital Assets, Ltd., backed by an unnamed group of Asian investors, which includes TRON’s CEO Justin Sun.
The newly formed company was registered in Seychelles – a remote island in the Pacific known for crypto favorable regulations. It is also a home for other unregulated cryptocurrency exchanges like BitMEX, Prime XBT, and reportedly even Binance.
Pros Explained
- Poloniex offers extremely low trading fees as compared to other majority exchanges.
- Poloniex is a User friendly trading platform (English version along with other languages).
- Poloniex account and order book holds a smooth and simplified user interface with trading view charting application for ease of use.
- Poloniex provides its users or traders with a pool of majority cryptocurrencies to choose from.
- It has a distinctive feature that its users or traders can leverage as well as futures trading options of investment using Poloniex.
- As per the review, Poloniex is a very easily accessible platform, where only the email address of the traders or users is required to trade.
Cons Explained
- The order book does not support fiat currencies in their trading process.
- Poloniex customer service support might be at times little delayed and laid back as observed and analyzed through customer’s feedback overall.
Reviewing of Poloniex
Poloniex is a great exchange, especially for trading altcoins. The fees are very reasonable and the site is easy to use. Below, let’s analyze the features to find the outstanding point of Poloniex.
Products and Services
Poloniex is a leading digital asset exchange offering a wide variety of digital assets. Poloniex offers its users a platform to trade a variety of digital assets, including Bitcoin, Ethereum, Litecoin, Monero, Zcash, and more. Poloniex also offers margin trading and lending services to its users.
Spot Trading
The Poloniex trading platform is available in over 50 countries. The website supports English, Spanish, French, Italian, Russian, and Chinese languages.
Spot trading is the most popular feature on the website. It allows users to buy and sell cryptocurrencies at the current market price. The website charges a 0.15% fee for spot trading.
Futures Trading
This exchange offers futures trading of digital assets. The highest leverage that can be used for futures trading is 50x. This is a very high leverage for futures trading, with the average leverage in the industry being 10x.
Margin Trading
This exchange provides margin trading services.Margin traders can get loans on this platform to facilitate their trades. The loan is provided in the form of cryptocurrency. The loan is secured by a collateral amount.
For margin trading, interest charges are incurred on borrowed funds. Interest rates are dynamic and are determined by demand. Generally, rates are between 0.02% and 0.08% per day. To determine the exact rate, check the leverage page on the Poloniex website.
Margin loans incur a one-time 0.01% loan fee. If a position is liquidated, a 5% liquidation fee is charged.
Note that margin loans must be paid back in full if you wish to withdraw your funds from the exchange. This includes both the amount borrowed and interest.
Tokenized Stocks
Poloniex lists more than 100 digital assets, including cryptocurrency pairs, tokens, and coins. The Poloniex exchange offers many Tokenized Stocks of some companies. Tokenized stocks of Poloniex include the following companies: Bitcoin, Ethereum, Dogecoin, Tether, XRP, and Litecoin.
Leveraged Tokens
Poloniex offers different types of leveraged tokens. The exchange uses ERC20 tokens for its futures contracts. All the ERC20 tokens are backed by USDT. Poloniex provides leverage of up to 4X for trading cryptocurrency pairs. The following pairs are available:
- BTC/USDT (Bitcoin)
- ETH/USDT (Ethereum)
- XRP/USDT (Ripple)
- LTC/USDT (Litecoin)
- BCH/USDT (Bitcoin Cash)
Volatility
The cryptocurrency exchange market is a highly volatile place. The prices of digital assets are constantly changing, and this affects the volatility of exchanges. The Poloniex exchange is no different.
The platform has a 24-hour trading volume of $1,959,541,871. This is a large number, but it is not the largest in the industry. The exchange’s liquidity is good, but there are other exchanges with better liquidity.
The platform’s 24-hour price change is -0.36%. This is a small number, but it is not the smallest in the industry. The exchange’s price volatility is low, but there are other exchanges with lower price volatility.
Staking
This exchange provides staking services to its users. Cryptocurrency holders can stake their cryptocurrency on this platform to earn interest. Stakeholders earn interest on their staked currency.
The interest rate is determined by the demand and supply in the staking market. Stakeholders can also set their preferred interest rate. There is a minimum amount that can be invested in staking. The minimum amount varies from one currency to another.
Staking is a popular activity among cryptocurrency holders. It allows them to earn income from their cryptocurrency holdings.
Lending
This exchange provides lending services to its users. Interested traders can lend out their cryptocurrency to margin traders who seek loans to facilitate their trades.
Lenders earn interest on their lent currency. The interest rate is determined by the demand and supply in the lending market. Lenders can also set their preferred interest rate. There is a minimum amount that can be invested in lending. The minimum amount varies from one currency to another.
Digital wallet options and security
Digital wallet option
Poloniex offers a number of digital wallet options to its users. These include a web-based wallet, a desktop client, and a mobile app:
- The web-based wallet is designed for use with the Poloniex exchange and allows users to store, send, and receive cryptocurrencies.
- The desktop client is a standalone applicatjion that can be downloaded and installed on a computer. It offers the same features as the web-based wallet but also includes a number of additional security features, such as two-factor authentication and a hardware wallet.
- The mobile app is available for both Android and iOS devices and offers the same features as the desktop client.
Security
In terms of security, Poloniex employs two-factor authentication for account login and withdrawal authorisation. When making a withdrawal, you must additionally provide email confirmation. As an additional precaution, the bulk of Poloniex’s clients’ funds are kept in cold storage. As an additional precaution, the bulk of Poloniex’s clients’ funds are kept in cold storage. Furthermore, the platform is regularly watched for any unexpected activity.
Trading Fee
Poloniex employs the industry standard maker/taker model for trading fees, which is considered to increase liquidity. Liquidity is very vital for Poloniex, especially because the exchange supports over 80 distinct types of cryptocurrencies. Regarding the appropriate maker/taker fees, the chart below provides an overview of what Poloniex charges:
| VOLUME | MAKER’S FEES | TAKER’S FEES |
| < 600 BTC | 0.15% | 0.25% |
| 600 to 1200 BTC | 0.14% | 0.24% |
| 1200 to 2400 BTC | 0.12% | 0.22% |
| 2400 to 6000 BTC | 0.10% | 0.20% |
| 6000 to 12,000 BTC | 0.08% | 0.16% |
| 12,000 to 18,000 BTC | 0.05% | 0.14% |
| 18,000 to 24,000 BTC | 0.00% | 0.12% |
| 24,000 to 60,000 BTC | 0.00% | 0.10% |
| 60,000 to 120,000 BTC | 0.00% | 0.08% |
| > 120,000 BTC | 0.00% | 0.05% |
For lenders, they get to earn a flat 15% fee plus interest. Deposits and withdrawals, on the other hand, do not incur any fee.
Customer Service
Poloniex mostly provides customer service via email. Users may open a customer support ticket by completing a simple contact form. The exchange also has a support section with frequently asked questions.
For the most part, Poloniex is a self-service platform where you manage your own account. If you don’t feel comfortable searching for answers to questions with help sections, you may prefer an exchange that offers more options for customer support.
Customer Satisfaction
While Poloniex obtains low rankings from reviews, it’s important remembering that bad customer service is an industry-wide issue. If your account is hacked or you unintentionally transmit cryptocurrency to the wrong address, you are unlikely to retrieve your assets, regardless of the exchange.
Account Management
Users of Poloniex may manage their accounts using the web dashboard and mobile apps. The account dashboard allows you to navigate through account settings and the main account functions, such as the trading platform, futures trading, and loans.
Anyone who has used an online stock brokerage or online banking should be able to navigate Poloniex’s dashboard and applications with ease.
How to use Poloniex: A beginner’s guide
This guide will teach everything for beginner need to know about Poloniex.
Choose a currency to trade
The first step is to decide which currency you want to trade. Poloniex offers a large selection of digital currencies, so you’ll need to narrow down your choices.
- Create an account
Once you’ve decided which currency to trade, you’ll need to create an account on Poloniex. This process is simple and only requires your email address and a password.
- Deposit funds
After you’ve created your account, you’ll need to deposit funds into it. Poloniex offers multiple deposit methods, including bank transfer and cryptocurrency.
- Start trading
Once you have funds in your account, you can start trading. Poloniex has a user-friendly interface that makes it easy to buy and sell currencies.
- Withdraw your profits
When you’ve made some profits, you can withdraw them from your account. Poloniex offers multiple withdrawal methods, including bank transfer and cryptocurrency.
How to open a Poloniex account?
Poloniex has both a centralized and a decentralized exchange. You’ll need an account to use the centralized exchange, which we’ll go over here. Poloniex, as previously stated, is exclusively available to users outside of the United States.
Poloniex’s enrollment process is comparable to that of other cryptocurrency exchanges. To begin, enter your email address and a password to create an account.
You must pass the Level 1 and Level 2 verification processes to access all account features and higher restrictions. Level 1 allows unrestricted trading, unlimited deposits, and $10,000 per day in withdrawals. Level 2 allows for daily withdrawals of up to $500,000, leverage trading, and speedier customer response if your account is locked out.
KYC verification requires you to provide your contact information, a snapshot of your government photo ID, and a selfie.
How to buy and sell cryptocurrencies on Poloniex?
To buy and sell cryptocurrencies on Poloniex, you must first create an account and verify your identity. Once you have done this, you can deposit funds into your account and use them to trade cryptocurrencies.
To buy a cryptocurrency, you will need to find a pair that you want to trade and place an order. To sell a cryptocurrency, you will need to find a pair that you want to trade and place an order.
Trading Experience
Poloniex offers multiple platforms that may be suitable for traders with varying degrees of experience. Beginners should begin with the basic buying and selling form, whilst experienced traders can go on to the active trading exchange.
- Basic Cryptocurrency Exchange Form
If you’re new to cryptocurrencies or wish to finance a Poloniex account with fiat cash, you may start using Poloniex’s easy cryptocurrency exchange form. This form allows you to effortlessly purchase and sell money using a bank account, debit card, or credit card.
If you pay with a debit or credit card, Simplex, the card processor, will charge you a 3.5% fee ($10 minimum). You may also be required to pay a spread charge.
- Active Trading Platform
Poloniex’s active trading platform features a chart with several indicators. You can also see recent transactions, an overview of the outstanding order book, your open orders, and a fast trading form.
Experienced traders who have past expertise with bitcoin, stock trading, or other active markets would likely favor the active trading platform.
- Mobile Apps
Poloniex offers applications for both iOS and Android smartphones. The Apple version is available in the App Store, while the Android version is available on Google Play or as a direct download. The applications let you to manage your account, monitor your crypto holdings, and trade supported currencies.
FAQs
Is Poloniex right for you?
If you’re looking for a reliable and user-friendly cryptocurrency exchange, then Poloniex may be the right choice for you. The platform is one of the oldest and most well-established exchanges in the industry, offering a wide range of features and a large selection of coins to trade.
Is Poloniex Exchange safe?
Poloniex does have some drawbacks. The platform has been known to be unreliable at times, with frequent outages and technical issues. Additionally, Poloniex has been accused of being slow to respond to customer support requests.
If you’re willing to put up with these potential issues, then Poloniex could be a good option for you. However, if you’re looking for a more reliable and customer-friendly experience, you may want to consider another exchange.
What cryptocurrencies does Poloniex support?
Poloniex supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Monero, Ripple, and more.
What happens if I lose my Poloniex account information?
If you lose your account information, you will not be able to access your account or any of your account data.
Conclusion
Poloniex is a real crypto-to-crypto exchange in terms of usability. The exchange has one of the most diverse collections of cryptocurrencies for you to deal with. Furthermore, it accounts for the majority of Tether trade volume in the cryptocurrency sector. It is also the only cryptocurrency exchange that provides a financing option. So what are you waiting for? Sign up today and start trading!
