Poloniex exchange is a popular name for cryptocurrency trading. It has some lucrative features! One of them is the lowest fees. This Poloniex exchange review will provide you with an understanding of all the essential things you need to know such as trading, depositing and withdrawing money from the exchange, various fees. I will also discuss the Pros and Cons of the Poloniex exchange and answer some commonly asked questions. Here We Go!
Poloniex exchange is an iconic crypto exchange, primarily serving cryptocurrency traders in the United States. Tristan D’Agosta established Poloniex as a digital asset exchange in the United States. The headquarters of Poloniex exchange is in San Francisco, California. It allows traders to trade multiple cryptocurrency pairs.
Table of contents
- What is Poloniex Exchange?
- Summary (TL;DR)
- Poloniex Review: Background
- How to Register on Poloniex Exchange?
- How to Trade on Poloniex Exchange?
- Poloniex Review: Deposit and Withdrawal Options
- Poloniex Exchange Review: Margin Lending and Borrowing
- Poloniex Fees and Charges
- Poloniex Exchange Review: Limits and Liquidation
- Poloniex Exchange Review: Privacy and Security
- How secure is Poloniex Exchange?
- Poloniex Exchange Review: Pros and Cons
- Poloniex Review: Advantages
- Poloniex Exchange Review: Disadvantages
- Poloniex Mobile App
- Poloniex Review: Cryptocurrencies Accepted
- Countries Supported by Poloniex
- Poloniex Review: Customer Support
- Poloniex Exchange Review: Conclusion
- Frequently Asked Questions
What is Poloniex Exchange?
Poloniex, like most cryptocurrency exchanges, employs a proprietary web-based trading network. The interface is well-designed, user-friendly. The chart includes several time frames, and you can see them as a candlestick chart or a line chart. The platform also includes integrated technical indicators, including Bollinger Bands and Fibonacci levels, that can overlay the trading chart to provide a more in-depth analysis of the markets. The trading platform’s app also helps you quickly access all 200+ cryptocurrency pairs available for trading.
Poloniex exchange allows you to Buy orders, Sell orders, and Stop limit orders on its platform. When exchanging Bitcoin, Ethereum, Monero, and Tether, you can execute both of these orders. It is worth noting that the Poloniex exchange accounted for 99 percent of Tether’s trading volume till 2017 due to the exchange’s high liquidity. Margin trading is also available on the Poloniex exchange, with some pairs offering leverage of up to 2.5x.
Furthermore, the Poloniex exchange provides its traders with a lending option that is not available on many crypto exchanges. With this leading choice, you can give or demand a crypto loan in exchange for a set interest rate.
Summary (TL;DR)
- Poloniex exchange has a low fee of 0.125%, the cheapest among all the competitors dealing with altcoins.
- The payment and transaction is carried out only through cryptocurrency.
- 2 step email verification is necessary to withdraw a significant amount.
- Earn passive income by lending your cryptocurrency assets at a fixed interest rate.
Poloniex Review: Background
Poloniex was established in Delaware, USA, in January 2014. Tristan D’Agosta, who has a musical background and formerly founded the Polonius Sheet Music company in 2010, is the company’s founder.
Poloniex experienced a high-profile hack shortly after its launch in March 2014, when it lost approximately 12% of its BTC, which was worth approximately USD 50,000 at the time. Nonetheless, the exchange’s management publicly reacted to the intrusion, promising complete reimbursements for the stolen 97 bitcoins from D’Agosta’s company income.
Following a rocky start, Poloniex was forced to briefly raise its fees before making headlines again in 2016 as the first exchange to list the Ethereum (ETH) cryptocurrency. Following that, the exchange’s trading volume increased, and it quickly became one of the most successful exchanges in terms of liquidity.
Poloniex was acquired by payments company Circle in early 2018 to transform it into America’s first fully controlled crypto exchange.
The exchange delisted nearly half of its crypto assets by becoming regulatory compliant and introduced strict KYC (know your customer) tests.
The Poloniex exchange experienced significant changes in 2019.
Poloniex remains a prominent digital currency exchange in 2021, with some of the market’s lowest trading and withdrawal fees. Thanks to a bug, they had to delete 12 minutes of trading history in February due to problems with their order book. The exchange redesigned its website and mobile applications in April, promising more drastic updates later in the year.
How to Register on Poloniex Exchange?
You need to register on the exchange to start trading. Poloniex had a high number of registrants at the time of publishing. This was due to several large exchanges refusing new registrants.
The first phase entails entering your country, email address, and password. If you’ve done this, your email address will automatically become your Poloniex ID. It is essential to encrypt your email to prevent hackers from gaining access to your Poloniex account.
Poloniex currently refuses sign-ups from disposable email addresses. We strongly advised you to build an alphanumeric password of 8 to 32 characters to secure your Poloniex account.
You will receive an email after you sign-up. To unlock your account, click on the available connection because Poloniex technicians will need more details before your account is fully operational.
If all of the information is right, the team will check your account in time for trading.
How to Trade on Poloniex Exchange?
It’s time to trade now, so fund your Poloniex account. Poloniex has made cryptocurrency trading easier by categorizing markets through tabs. You can find the most recent prices under each tab.
You can also exchange cryptocurrencies for Bitcoin, Ethereum, Monero, and USDT. Choose a crypto coin to buy or sell from one of the tabs. You can begin with ETH/BTC, where you can buy and sell ETH for BTC.
Fill in the price and number of crypto coins to buy or sell cryptocurrency pairs. Optionally, you can use the order book to make your selection. By clicking “Buy,” you can place your order. This will cause the system to look for orders with the same ask price as yours.
Poloniex Review: Deposit and Withdrawal Options
At the moment, Poloniex does not accept fiat currencies. You can use only cryptocurrencies for deposits. The following cryptocurrencies are the most commonly traded on the exchange:
- Bitcoin
- Ethereum
- Dash
- Litecoin
- Zcash
- Monero
However, You should note that Poloniex supports over 80 different types of altcoins.
Deposit Money in Poloniex Exchange
- Move your mouse on Balances at the top of the page, then press Deposits & Withdrawals.
- Now it will present a screen with a long list of cryptocurrencies that you can purchase. Check for the coin you want to deposit on the right side of the page.
- I’m buying Bitcoin Cash (I don’t recommend to buy this Shitcoin), as you can see in the screenshot below. Then, on the right side of the phone, press Deposit.
- It will give you the unique deposit address for the coin you wish to finance your account. Note that each currency will have its address, so don’t try to submit Litecoin to a Bitcoin Cash address.
Withdrawing Money from Poloniex Exchange
It is important to note that Poloniex only accepts crypto transactions, so that you will be withdrawing crypto rather than fiat. The withdrawal procedure starts by selecting the ‘Withdraw’ tab and entering the coin and sum you wish to transfer.
Next, go to your Poloniex crypto wallet and create a deposit address, which you should then copy and paste into the appropriate field. Wait a few moments for the platform to complete the required verification processes. Without network congestion, your funds will appear in your wallet in around two hours.
Poloniex Exchange Review: Margin Lending and Borrowing
Poloniex offers margin lending and borrowing, allowing you to generate passive income from your crypto assets.
All margin borrowers pay lenders interest depending on the amount borrowed. Since the lender usually specifies the interest rate, there are several different deals. As a lender, you will be charged a 15% fee on the borrower’s received interest.
Poloniex Fees and Charges
Poloniex uses the industry-standard maker/taker model for trading fees, which is said to promote liquidity. Liquidity is especially critical for Poloniex, given that the exchange supports more than 80 different types of altcoins. Regarding the relevant maker/taker fees, the table below indicates what Poloniex charges:
| Volume | Maker’s Fees | Taker’s Fee |
|---|---|---|
| < 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% |
Lenders will receive a flat 15 percent fee plus interest. Deposits and withdrawals, on the other hand, are free of charge.
Poloniex members are subject to a variety of fees, which are detailed below:
- Trading Fees: Poloniex charges trading fees on a per-trade basis. They have organized the fee schedule into nine different fee rates. They have divided the fee schedule into six tiers based on your 30-day trading volume and TRON (TRX) balance. For example, if your 30-day trading amount is less than $50,000 and your TRX balance is less than $49, you will be charged 0.125 percent of your TRX balance, whether you are a maker or a taker. On Poloniex, a maker is a market participant who generates liquidity, while a taker is a market participant who drains market liquidity.
- Futures Trading Fees: Poloniex calculates fees in this category using the taker and creator method. Makers pay a flat fee of -0.026 percent (the platform offers rebates to makers as an incentive to trade on Poloniex), while takers pay a flat fee of 0.075 percent.
- Margin Interest Fees: Poloniex charges this fee from the users who trade cryptocurrency on margin. This fee is calculated by Poloniex depending on the sum borrowed from the lender.
- Lending Fees: Lending fees apply to those who use Poloniex’s crypto-lending functionality. Poloniex receives 15 percent of the interest earned by lenders on the loans they make.
- Transaction Fees for Deposits and Withdrawals: Depositing cryptocurrency into your Poloniex account is secure. Withdrawals, on the other hand, incur fees that vary depending on the asset.
Poloniex Exchange Review: Limits and Liquidation
Poloniex has one of the enormous daily volumes in the industry. Moreover, CoinMarketCap rates the exchange 14th in terms of web traffic. CoinMarketCap uses an online traffic factor to rate cryptocurrency exchanges from most common to least popular from top to bottom.
Poloniex imposes transaction limits on accounts based on their amount. Level 1 accounts have a daily withdrawal limit of $10,000, but you can increase this amount to $50,000 per day if two-factor authentication is enabled (2FA). Level 2 accounts can withdraw up to $500,000 per day by default, but you can increase the cap to $1 million if you allow 2FA.
Besides that, Level 2 Poloniex users can request address whitelisting from Poloniex customer service representatives to increase their deposit and withdrawal limits. To use this service, users must have pre-authorized cold storage wallets to ensure the digital currencies’ protection. Poloniex Plus and Poloniex VIP members have access to such facilities.
Poloniex Exchange Review: Privacy and Security
Poloniex has a good track record for platform safety, mainly after it immediately shut down unusual activity to avoid a significant platform breach in March 2014. The exchange’s administration was transparent about the breach and quickly implemented plans to strengthen security while reimbursing missing crypto. The exchange has successfully pushed its daily volume to an industry record because of a better trading experience for its customers.
How secure is Poloniex Exchange?
The platform now has robust DDoS security, cryptographic protocols for DNS cache protection, IP lockouts, and email verifications. Poloniex stores the majority of its clients’ digital currencies in cold storage wallets.
The Financial Services Authority (FSA) of Seychelles and other jurisdictions, where it functions, control Poloniex’s operations. Due to its activities in the United States, Poloniex is regulated by Financial Industry Regulatory Authority (FINRA) and the Financial Crimes Enforcement Network (FinCEN). Furthermore, reputable European Economic Area (EEA) regulators oversee the protection of Poloniex services.
Besides that, the platform takes privacy concerns seriously. To begin, Poloniex has a robust privacy policy available for all to review on its website. Poloniex, unlike other proposals, is concerned with clarity rather than jargon. For instance, the organization specifies the type of data it collects and what happens to it.
Poloniex’s verification method is simple, with three stages.
Three stages of Poloniex verification
- You must verify your name, email address, and country of residence for the first step. After finishing, you will be able to withdraw up to $2,000 and trade on margin.
- The second level requires you to include additional details such as your address, phone number, and a scanned copy of your photo ID. Poloniex will need several days to check all of the descriptions and information during the verification process at this stage. You will be able to withdraw up to $25,000 once the backend team has inspected you at level 2.
- The third level of verification conditions is not published, except for those who wish to withdraw more than $25,000.
Poloniex employs two-factor authentication for account login and withdrawal authorization. When making a withdrawal, an email confirmation is also needed. As an added measure, Poloniex keeps the majority of its clients’ funds in cold storage. Furthermore, the team continuously monitors the platform for any suspicious activity.
Poloniex Exchange Review: Pros and Cons
Every crypto exchange has its pros and cons. Different features are appealing to different consumers. Some people may prefer the exchange with the lowest fees, while others prefer an exchange that enables fiat deposits. This is why it is crucial to discuss various aspects of this exchange to make an informed choice.
| Pros | Cons |
|---|---|
| Poloniex has a huge cryptocurrencies list on its site. | Poloniex exchange does not allow the traditional payment through debit/credit card. |
| Easy to use but accommodates the needs of advanced users. | The Poloniex exchange was hacked in 2014. |
| Blockchain fees are paid only for deposits and withdrawals. | Customer support needs a lot of improvement. |
| The trading fee is reasonable. Only 0.125% | Fiat currency is not supported by Poloniex review |
| Verification is not required for trading for a small amount. |
Poloniex Review: Advantages
One of the primary benefits of using Poloniex is the extensive selection of cryptocurrencies. This includes famous cryptocurrencies such as Ripple, Steem, Monero, and Bitcoin Cash. Poloniex, on the other hand, lists smaller cryptocurrencies such as BlackCoin, Bela, and Burst!
When it comes to trading, Poloniex has a great range of resources. This includes candlestick charts of periods ranging from 5 minutes to 4 hours, stop-limit instructions, and the ability to zoom in and out of charts. This isn’t to say that the platform isn’t ideal for beginners, as the interface is highly user-friendly.
The aspect that Poloniex is located in the U.S. is also advantageous, as government control is exceptionally stringent. This implies that the exchange will make every effort to keep client funds secure while also keeping crime at bay. Or else, Poloniex knows that if anything negative happens, U.S. regulators will find them a lot of money.
So, is Poloniex Risk-Free?
Nothing is risk-free.
However, main benefit of using Poloniex is that it has a lot of liquidity, particularly with altcoin pairings. This is important because it ensures that you can still find someone to trade with and decrease uncertainty risks.
Poloniex has one of the lowest fees in the sector for making deposits and withdrawals. This is because you can only ever pay the blockchain transaction fee! Several other crypto exchanges benefit when you withdraw your assets, which isn’t fair since they profit from you every time you trade.
Trading rates on the Poloniex exchange are also very fair, with a maximum charge of 0.125 percent, but charges will reduce when you trade in more significant amounts.
Another benefit of using the Poloniex exchange is that you do not need to check your identity unless you are trading huge quantities. In reality, you can trade anonymously unless you want to trade more than $2000 a day!
Poloniex Exchange Review: Disadvantages
One of the critical drawbacks of using the Poloniex is that you cannot use conventional payment methods like a debit/credit card or a bank account. This can be very inconvenient if you’re trying to make your first deposit since it means you’ll have to finance your account with a cryptocurrency instead.
The next downside of using Poloniex is that there are still security concerns. In 2014, someone stole 12.3 percent of their total Bitcoin supply. However, the Poloniex exchange owner repaid everyone a few months later, which he accomplished by briefly raising trading fees.
Poloniex Mobile App
Poloniex exchange has launched mobile apps for Android or iOS devices.
The apps are helpful for trading, but they do not yet have all of the functionality available on the website. You cannot have access to margin trading, the opportunity to purchase cryptocurrency with a bank card, margin lending, or the Poloniex IEO platform.
Nonetheless, it’s a decent choice for spot trading, account management, generating alerts, and handling your crypto finance when you’re not at your device.
Poloniex Review: Cryptocurrencies Accepted
At the moment, you can purchase ATOM, BCH, AVA, BNB, BTC, BSV, BUSD, ETH, DASH, LTC, QTUM, PAX, TRX, XLM, USDT, and XRP. At the moment, you can sell BTC and the ERC-20 version of USDT.
Countries Supported by Poloniex
Poloniex customers in the following countries can buy cryptocurrency using a Simplex bank account: Andorra, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Latvia, Lithuania, Luxembourg, Malta, New Zealand, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, and Slovenia.
Poloniex Review: Customer Support
Poloniex‘s customer service is not one of its strong points. It is a mixed blessing, with many users complaining about how slow it is to react. Regardless, you can reach it through the following channels:
- The aid center’s support ticket system
- A comprehensive FAQ knowledge base
- Trollbox
- Twitter and other forms of social media
Poloniex does not have phone service and claims to respond within a few days. The only way to reach the support staff is via an email ticket system. Unfortunately, the ticket answer time is very long. The quickest way to get help is to query the moderators in the trollbox explicitly.
Even though a FAQ is available, it only covers basic questions and does not include many specifics.
Poloniex Exchange Review: Conclusion
Poloniex provides excellent services for trading bitcoin and altcoins. It has the lowest fees among its competitors and only requires your email address during registration because identity verification is optional.
The Poloniex exchange platform has had a turbulent experience in the past, but it seems that the exchange can now stabilize and reclaim its user base. Even if its customer service isn’t the best, it helps you to trade without having to go through forced KYC procedures, which is a rare positive in today’s crypto industry.
Following a change of ownership in 2019, the exchange moved to Seychelles and adopted a more open, loosely controlled approach, allowing it to provide a broader range of services, support more cryptocurrencies, and eventually re-establish itself as an essential part of the cryptoverse’s infrastructure.
Frequently Asked Questions
Is the Poloniex Exchange safe?
Even though Poloniex was hacked in 2014, there have been no more cases of cyber attacks since then. As a result, it is reasonable to conclude that Poloniex is risk-free.
Is the Poloniex exchange good?
Poloniex is a successful and well-known exchange that provides:
– Meager trading costs.
– Excellent customer service.
A simple registration process.
– Various cryptocurrencies.
– Other fantastic features.
Is the Poloniex exchange app for me?
Poloniex is very simple to use, which makes it ideal for beginners. However, since it includes a wide range of software, it should also be suitable for more experienced users and experts.
Can I use fiat currency on the Poloniex exchange?
No, Poloniex exchange does not allow the usage of fiat currency on its platform. You can only make transactions using various cryptocurrencies, Bitcoins and Altcoins.
