Whether you’re just starting with cryptocurrency trading or looking for a new exchange to add to your list of trading places, there are many factors to go over. From the various options available, you should choose the right one to trust your coins with.
Although, how do you pick one among so many? You must consider the reputation of the exchange, the fees they charge per transaction, available payment methods, security offered, verification requirements, geographical restrictions, exchange rates, and the types of orders that you can place.
I know we’ve all heard the words ”scam” and “Poloniex” in the same sentence several times, but in this Poloniex exchange review, let’s go beyond that! Let’s discuss how Poloniex fares against all the parameters I just listed out, so you can make an informed choice about using it to trade.
How Did Poloniex Come Into The Picture?
Poloniex was founded by Tristan D’Agosta, based in San Francisco, California, in 2014 and went on to become one of the largest cryptocurrency exchanges in America. In its initial stage, the focus of the cryptocurrency exchange was on the United States market.
It was acquired by Circle in 2018, and its services to US users were shut down in Dec 2019, after it was spun out of Circle. However, by that time, over 70% of its customers were based outside of the United States.
What’s Their Collection Like?
Poloniex has a wide range of cryptocurrencies. Over a hundred digital assets are listed on the exchange, including Bitcoin, Etheruem, Ripple, Litecoin, NEO, TRON, and many other altcoins.
However, there might be regulatory restrictions on some currencies due to which they may not be accessible to you. This depends on your verification address.
So, Is It Cheap?
The trading fees are usually below 0.2% on the exchange. It’s interesting to note that the fees drop as you trade more. On Poloniex, the fees depend on your 30-day trading volume. If your monthly trading volume increases, the percentage of your fees will reduce.
In addition to this exchange fee, you must pay a transaction fee. There isn’t a deposit fee, but withdrawals have a fixed amount that needs to be paid per transaction. This fee is different for different coins (0.0005BTC if you’re trading using bitcoin), and is actually charged by the cryptocurrency’s network. Poloniex doesn’t charge you for this.
If you’re using the first level of verification, the one where it asks you only to enter your name and email address, you cannot withdraw over ten thousand dollars a day. If your postal address, date of birth, phone number, and ID are approved, it means your two-level verification is activated. This allows you to deposit and withdraw up to five hundred thousand dollars.
How Can I Pay?
A common complaint Poloniex users have had for a while is that it did not support trading with fiat currency for a long time. This means that customers needed to use a different exchange to buy a cryptocurrency and then use them for trading on Poloniex.
The good news is, Poloniex supports credit and debit card payments now. You can use your Visa or MasterCard to buy or sell cryptocurrency. However, like in many other exchanges, you have to be a verified user to use these payment options.
Is Verification A Hassle?
Level 1 verification permits you to withdraw 10,000 dollars per day, while Level 2 allows you to withdraw up to 500,000 dollars. To create the Level 1 account, you will have to provide only your name, email address, and password. Since you are entering very little information about yourself, if you lose your Level 1 account, recovery might take months.
Level 2 accounts have the added benefits of custom limits on withdrawals, margin trading, and ease of regaining access to lost accounts. This tier just needs you to update your physical address, photo identity card, passport or driving license, and phone number. (i.e., the standard know-your-customer(KYC) requirements)
Alright, How Do I Sign Up?
In this part of the Poloniex review, you will see that setting up your Poloniex account is very easy. Here’s how you do it:
Create your account -> Validate your email -> Start Trading
Click on sign up on the website’s homepage and fill in your details in the Register form that appears.
Make sure to give a strong password and an email address that cannot be accessed by anyone else. I would suggest you keep a different email address for trading purposes. Since all communication with the cryptocurrency exchange will be through email, you must protect it as much as you would protect your Poloniex account itself. Once you submit these details, you will receive a Validation mail (check your Spam folder if you can’t find it) and you should use it to sign in to your account.
After this, you will be prompted to share your details and Identity proof, and then you’re done!
You can choose to enable two-factor authentication in order to improve the security of your account. You’ll need another app for this, which generates a code each time you log in. You will have to enter this code along with your password every time you access your account.
I’m All Set! How Do I Buy?
Go to Balances in the top right corner on your home page, and select Deposits and Withdrawals. A long list of cryptocurrencies will appear. Search a currency such as Bitcoin Cash and click on Deposit on the right side.
It can take up to two hours for your funds to get added.
Why Poloniex Could Be Right For You
Poloniex’s simple, clean and easy-to-use interface makes it very comfortable to operate. It has just the right amount of information you need to buy or sell, and nothing is overwhelming to look at. The RAM and CPU utilization is normal, unlike most other cryptocurrency exchanges. This is a major plus, as it is very important for an application to consume lesser computational resources.
You can effortlessly set up Stop-limits on your buy or sell orders. Poloniex has also rolled out Android and iOS apps so that you can trade on the go, just with your fingertips. The best part is margin trading. Most exchanges don’t support it, and Poloniex offers you this opportunity to invest less and earn more. The platform also lends cryptocurrency from a pool of digital assets at an interest rate for those who want to borrow.
CryptoCompare, a renowned online data aggregator, gave Poloniex a score of AA in trading platform quality and placed it 2nd in a list of 211 platforms worldwide.
It’s Safe, Right?
There are some security concerns owing to the fact that Poloniex is a centralized exchange (which means that all transactions go through a server, the way our American dollars go through banks). Barring that, it is safer than most other cryptocurrency exchanges.
They did get hacked in 2014, losing 12.3% of its users’ bitcoin holdings, but you’ve got to cut them some slack, for they had barely entered the market at the time! After recovering from the hack, the cryptocurrency exchange has upgraded to two-factor authentication.
When you’re making withdrawals, Poloniex constantly runs audit programs to block activities that seem suspicious so that they are looked into before causing any trouble. Another reason why Poloniex is secure is that most of the funds are stored in air-gapped cold storage, offline. Only enough funds for seamless trading are kept online. This makes your funds less prone to hacking.
Further, the chances are that Poloniex is not going to be a centralized exchange for long! They’re working on decentralization with the help of Tron, a project that is dedicated to building the necessary infrastructure for a truly decentralized internet. As a part of this effort, an Initial Exchange Offering was launched by Poloniex to help grow blockchain projects.
The Good And The Bad
Poloniex is recognized in over 200 countries and supports over a hundred pairs of cryptocurrencies. Earlier this year, Poloniex was ranked 13th by volume of its dollar value. The fees and rates of commission are really low, and the more you use, the less you pay. It also allows margin trading, which allows you to make a significant profit with a tiny amount of investment.
The fact that the exchange is centralized makes it look slightly less attractive, but Poloniex has now shifted it’s focus to decentralized finance. It has also launched an IEO platform to help the growth of blockchain projects.
The transaction speed is really good, but some users have complained that the page takes a long time to load. However, Poloniex has clarified that it could be due to temporary outages or insufficient bandwidth and have been working on the smooth running of their web pages.
A common complaint that Poloniex users have had over the years is poor customer support. The exchange, however, has been bringing several Customer Support updates. All the Customer Support Ticketing Tools and Support Centers were migrated to a single platform to be able to see all their customers’ issues in a centralized place. The user interface was improved, and new widgets have been set up to submit inquiries. Poloniex now claims to have a response time of less than a day.
The site supports only English, which might pose a problem for people who do not know the language while using the website or communicating with technical support teams. Also, the withdrawal limit ($10,000) is not a big amount in terms of bitcoin, and additional verification is necessary to surpass this limit.
There have been security concerns in the past and a lack of transparency. It was once hacked in its early days but recovered quickly. It is now considered one of the most reliable exchanges. Poloniex has been widely praised for bringing in two-factor authentication as it adds an extra layer of security. Necessitating the approval of every transaction makes it further safe.
With All That Said
After reading this Poloniex review, you must’ve realized that the cryptocurrency exchange has taken various security measures over the years and vastly improved customer support infrastructure. This is proof that Poloniex keeps learning from the feedback it receives and strives to make cryptocurrency trading easier and more beneficial to its users.
Poloniex also made sure to do right by its customers, who may have fallen prey to a flash crash in 2020, by paying them back. It keeps rolling out new features every now and then, like API starter kits and 50x leverage for traders. Poloniex was also named one of the most active crypto exchanges for listing DeFi (decentralized finance) governance tokens.
Poloniex has been one of the top cryptocurrency exchanges for a while now, and despite some major setbacks, it has proved itself to be fast, efficient, reliable, and even customer-friendly. It’s clear that the wide range of features offered by Poloniex, as a result of using a simple and clean interface, makes it a go-to choice for beginners and experts alike.