Poloniex is one of the most popular cryptocurrency exchanges in the world. It has been around for over a decade and has seen its fair share of highs and lows. Today, it remains one of the top exchanges in the industry with a solid reputation.
Poloniex is a cryptocurrency exchange that offers trading in a variety of different pairs. It was founded in 2014 and has been around since then.
It’s difficult to know where to begin with the vast number of cryptocurrency exchanges available today. There are a lot of choices, and if you’re new to the crypto world, figuring out where to start buying, selling, and trading your favorite digital currencies may be difficult. Thankfully, with our Poloniex review, we at Total Crypto are here to help you sort things out.
While there are several renowned and trustworthy exchanges, like as Binance and Coinbase, there are other platforms that are less transparent with their rules. Some also fail to provide the support and assistance that customers need when things get complex or difficult.
Poloniex is a cryptocurrency exchange that teeters on the line between providing a good user experience and not being completely honest with its clients. Let’s take a closer look at the Poloniex exchange to see what you can learn about it and if it’s the appropriate exchange for you.
Poloniex: Who Are They?
Although Poloniex does not have the same clout as Binance, Coinbase, or Bittrex, it is nevertheless a well-known cryptocurrency exchange. Poloniex, based in the United States, was founded in 2014 and has a significant share of the cryptocurrency industry due to its large volume of altcoin trading.
Poloniex was founded in Wilmington, Delaware, in the United States, by Tristan D’Agosta. However, the site has changed its address to reflect Poloniex, LLC’s new location in Boston, Massachusetts.
Circle’s latest purchase has given the platform some of the shine it had lost to rival exchanges in past years, as well as allowing users from all around the globe to use its services. Poloniex has also significantly extended its cryptocurrency support, making it one of the leading exchanges in this area. Based on total daily trading volume, Poloniex is one of the top twenty crypto exchanges in the world.
Despite the fact that Poloniex is based in the United States, it does not impose any geographical limitations on its customers. This is mainly due to the platform’s entirely crypto architecture, which means Poloniex is exempt from local finance and banking laws since it does not accept fiat currencies.
Poloniex Accounts and Know Your Customer (KYC)
Poloniex formerly allowed users to establish anonymous accounts that did not need any personal information or identity verification. This was their first tier account level at the time, and many people opted to remain on it. The daily withdrawal limit for the first tier was $2,000 per day.
Poloniex has now decided to alter its policy, much to the displeasure of its users. The platform has chosen not to allow unvalidated accounts, requiring all users to go through the verification process.
This implies that every trader on the Poloniex platform must now go through verification, which will assign them to a tier 2 account with a daily maximum of $25,000. The issue, however, was the manner in which Poloniex implemented the modification.
Users claim that Poloniex assured them that money in their accounts would be available if their accounts were not confirmed by the deadline. Unfortunately, actions speak louder than words, and those same customers said that Poloniex refused to release their money unless they supplied appropriate paperwork.
To you, what does this imply? It all comes down to how comfortable you are with sharing your personal information with a site like Poloniex. While some exchanges need KYC (Know Your Customer) and AML (Anti-Money Laundering) checks, the majority are transparent about the procedure.
Platform for Trading
Any exchange relies heavily on its trading platform. When utilizing Poloniex, you have three tabs running across the top from which to choose. You’ll encounter terms like “Exchange,” “Trading on Margin,” and “Lending.” The Exchange tab will be discussed in this section.
While the Poloniex website might be improved, it performs what you want it to do. It’s a user-friendly platform that’s simple to use even for inexperienced traders. The chart is the first thing you’ll see when you go to the Exchange tab. Below it, you’ll see your order forms, which allow you to place various kinds of orders (which we’ll discuss later). You may move between marketplaces on the right side of the platform depending on what you wish to trade.
You must scroll down to see the order books, market depth, and prior orders, which may be aggravating. As a result, the Poloniex trading platform’s structure is inefficient for users.
Poloniex may disappoint you if you like doing technical analysis or need sophisticated trading tools. The offered choices are extremely basic and simply provide rudimentary indications. Bollinger bands and moving averages are the most sophisticated features.
Poloniex does not allow you to fill up chart drawings in order to find replacement levels on the exchange. You may, however, change the time on the horizon by zooming in and out as required. This assists you in gaining a better overall understanding of how the industry is doing.
If charting is an essential part of your trading day, you have a few of choices. If you want to stay with Poloniex, you need invest in charting software that you can use outside of the exchange. If you want more sophisticated trading capabilities, you should look for another exchange like Kraken (which we suggest).
Poloniex is in the center of the pack when it comes to order functionality. Standard buy and sell order options are available on the site, allowing you to specify your own price or trade at the current market price. Keep in mind that as part of the maker-taker dynamic, which we’ll cover later, this will have a direct effect on your fees.
However, if you want to have a safety net in the form of a stop loss order, you may do so on the Poloniex site as well. You may choose a stop loss level, which will cause the order to execute automatically whenever the price hits the level you specify.
Limit orders, which lock in an order once the price hits a particular level, are also available. These orders may help you minimize your risk, particularly if you’re a day trader with a limited time frame.
Poloniex, unlike many of its competitors, offers margin trading on its platform. If you wish to start margin trading, you may utilize Poloniex’s peer-to-peer option, which enables you to borrow money.
Users may safeguard the money they want to utilize for trading while simultaneously taking use of a loan function on the site. Users may use this tool to lend money to other traders on the site. This option is available on just a few exchanges, and it’s a fantastic feature for Poloniex since it helps to attract experienced traders to their platform.
Margin trading is similar to leveraged trading in that you are taking on a larger stake than your initial investment. Poloniex will only allow you trade on margin at 2.5x your investment, thus leverage choices are too expensive.
While this may be a source of irritation for more experienced traders, Poloniex with their lower leverage trading levels may be a nice place to start if you’re new to margin trading.
Poloniex offers a lot of alternatives for you if you want to trade altcoins. On the platform, there are now over 99 markets with trading linked to four basic cryptocurrencies. Bitcoin, Ethereum, Monero, and Tether are the four cryptocurrencies shown in the diagram below:
Poloniex is a crypto-to-crypto exchange with the option of storing money in Tether, a stablecoin that is pegged to the US dollar. For the sake of comparison, 1 Tether is equal to 1 USD. Because Poloniex does not accept fiat currencies, this may come in useful when utilizing the exchange.
Customer service is a major drawback of utilizing the Poloniex platform. When a problem is reported, there have been allegations of abnormally lengthy response periods, as well as concerns that issues and inquiries may go unaddressed for months at a time.
Concerns have also been raised about withdrawals taking longer than usual to process, which the exchange claims is due to the unexpected increase in demand. Poloniex, on the other hand, falls short of the mark when compared to other platforms with comparable criteria.
Customers who wish to utilize Poloniex should be concerned about slow or sluggish customer support, but there are other options available. You may get answers to your queries by looking through the site’s FAQs.
You’ll also get access to a support center, which will very certainly contain the solution to any questions you may have. Everything from exchange costs to two-factor authentication and everything in between is covered in this section.
If, on the other hand, your issue is technical and requires the assistance of customer service, you will be subjected to very lengthy wait periods.
You may anticipate to pay both maker and taker fees while utilizing Poloniex. Maker fees are 0.15 percent of the transaction value, whereas taker costs are 0.25 percent of the transaction value. Poloniex also features a volume-tiered maker and taker fee structure. If you’re uncertain about your trading tier, go to the Poloniex site’s Tier Status page. If you opt to lend money, you will be charged a 15% fee on any interest you earn.
Every transaction involves a creator and a taker. Before the transaction, the maker is the party that holds the order on their order book. The taker submits a request that corresponds to the maker’s request. When you trade on an exchange, you have the option of buying a cryptocurrency at the best available price or bidding at a different price.
If your trading volume on the Poloniex platform reaches 24,000 BTC, you will not be charged any trading fees.
Is Poloniex Safe to Use?
When searching for a cryptocurrency exchange to use, one of the most essential factors to consider is whether or not you can trust the exchange. Cryptocurrency exchanges are a target for individuals with nefarious intent, something Poloniex is well aware of.
Poloniex was the victim of a major cyberattack in 2014, which resulted in the exchange losing over 12% of its Bitcoin holdings. According to Poloniex’s owner, the hacker discovered a flaw in the programming that allowed them to get access to the exchange’s assets.
Poloniex has not experienced another setback since then, although the exchange only refunded a portion of the funds to its customers. All of this raises the issue of how secure Poloniex is today.
Two-factor authentication, or 2FA, is required for a transaction to be deemed secure. This extra layer of protection helps to safeguard the money you have on the exchange. This isn’t the default option on Poloniex, so you’ll have to go into your preferences and activate it. This is a strong defense against hackers gaining access to your digital money.
If you do decide to use Poloniex, we suggest that you activate 2FA to safeguard your money. Also, don’t leave big sums of money on the exchange. To keep them safe, move them to a cold storage wallet or get a hardware wallet.
Site Monitoring and Cold Storage
If you opt to retain your money on the Poloniex exchange, they will be kept in cold storage, which is a safe offline environment. Poloniex also maintains a small number of coins live in hot wallets for a limited time to protect their money against hackers and assaults.
Furthermore, the exchange performs its share to monitor any suspicious activity that may lead to harmful access to their platform. Poloniex regularly checks their exchange, and if any suspicious activity is detected, the IP address is banned.
Acquisition in a Circle
Despite the fact that the Poloniex exchange has a trade volume befitting of becoming a leading crypto exchange, the site has been plagued by ongoing issues. The site is less open than others, with little to no information regarding the organization’s structure, ownership, or senior management personnel.
Many people referred to the absence of a physical office as a source of mistrust between the exchange and its customers. Poloniex was expected to function with more credibility and openness.
The site’s reputation continued to deteriorate as unfavorable internet reviews increased and customer support for the exchange decreased. Furthermore, several customers questioned the site’s liquidity after having trouble withdrawing their money. Users were unable to rapidly sell their cryptocurrencies due to long withdrawal periods, and their money were often blocked while they sought permission from the exchange.
Poloniex has lost a substantial amount of market share to rivals like as Coinbase, Huobi, Binance, and others as a consequence of all of these issues. The expectation is that Circle’s purchase of the exchange will start to turn things around, but based on past behavior, it may be too little, too late for many customers.
Things I Don’t Like
We think there are certain details regarding this exchange that you should be aware of before deciding if Poloniex is the appropriate exchange for you.
- The site itself seemed to be outdated, and there were no sophisticated tools or features accessible for more technically knowledgeable traders. This may be the reason why the platform’s traffic has dropped dramatically. Other exchanges, such as Kraken and Binance, are taking the required steps to upgrade their older systems at the same time.
- Customer support on the website is a major issue. Poloniex has been accused of not providing enough assistance to its customers for years. The fact that the site locked users out of their accounts when it switched to a more secure system just adds to the issue.
- Finally, for individuals who are new to cryptocurrencies, the absence of support for fiat issues may be a major problem. Many exchanges, including Binance, Bittrex, and others, are exploring the possibility of enabling fiat currency purchases of cryptocurrencies.
Do you still want to try Poloniex?
- Only crypto is accepted as a deposit method.
- There are around 120 trade pairs available.
- Margin trading is available.
- With the Poloniex Android and iOS apps, you can trade on the move.
If you are certain that Poloniex is the right choice for you, create an account.
Despite the fact that Poloniex is still a well-known platform, the exchange’s issues make it tough to recommend. Because it refuses to make the necessary adjustments to stay up with industry leaders like Coinbase and Binance, the site continues to lose ground to them.
The fact that the exchange has been ready to be less than open in the past gives us reason for worry, particularly when it was willing to intentionally mislead its users and freeze their accounts when they explicitly indicated the opposite facts.
Furthermore, the site’s customer service is, to put it bluntly, appalling. Users regularly claim having to wait days or weeks for basic difficulties or concerns to be resolved. Concerns have also been raised about the time it takes for customers to sell their bitcoin, particularly when competing exchanges take much less time.
We at Total Crypto can’t endorse Poloniex for crypto trading in good conscience. You won’t have access to the tools you’ll need, and it’s also unclear if the site will solve the problems that are plaguing it. For the time being, we recommend deferring use of Poloniex until we know for sure how much will change as a consequence of the Circle purchase.
DISCLAIMER: The activity of the cryptoassets discussed in this paper is uncontrolled. This post is not intended to provide financial advice. Always do independent research.
Poloniex is a cryptocurrency exchange that offers a variety of services. It has been in operation since 2014 and has seen its fair share of ups and downs. Reference: poloniex fees.
Frequently Asked Questions
Is Poloniex Safe 2021?
Yes, Poloniex is safe for the time being.
How do you trade Poloniex for beginners?
Poloniex is a cryptocurrency exchange that allows you to trade cryptocurrencies for other digital currencies or for fiat currency. It also offers margin trading, which means you can leverage your position as well as borrow money from the exchange to buy more coins.
Has Poloniex ever been hacked?
Poloniex has never been hacked, but they have had security breaches.
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