Poloniex General Overview
Poloniex is a well-known name in the cryptocurrency industry. The history of this exchange spans all the way to 2014 when it was founded in the US. Over the course of six years, this exchange has added more than 100 trading pairs to its portfolio while expanding its services globally. It is also considered to be a good starting point for beginners because of the straightforward design that makes this exchange unique in a sense. The ownership of Poloniex has been transferred to Justin Sun, the owner and CEO of the TRON (TRX) project, in late 2019 for an undisclosed amount. Poloniex is headquartered in Seychelles and allows users to interact with the platform on the web, Android, iOS, Websocket, and HTTP APIs.
What is Poloniex?
Poloniex is a digital asset exchange that has been operational since 2014. By trading volume, it occupies the top 20 spots but it is far from market leaders. The trading volume has been declining slightly after the controversial Justin Sun took over but Poloniex services still remain almost unchanged. As of early 2021, there are 166 coins and 286 trading pairs on the exchange. The most active trading pair on the Poloniex exchange is BTC/USDT.
Why Choose Poloniex?
Poloniex offers a wide range of trading pairs that have a fair amount of liquidity most of the time. Currencies with a low market capitalization will often have a modest order book to offer but the popular trading pairs are following market movements at a very acceptable rate. On top of spot trades, users can use leverage and futures trading. Withdrawals are flexible for unverified users as well. Level 1 accounts can withdraw up to $10,000 USD per day by default. If users have a Level 1 account and enable 2FA, their withdrawal limits will automatically increase to $50,000 per day. Trading fees for the spot market are at an acceptable level of 0.125%. TRX trades come with a 25% discount and a fee of 0.0937%. As far as design and user experience go, Poloniex is very easy to navigate even for complete beginners.
If you need assistance on this exchange it will be the first disadvantage you will encounter. Support can be contacted only by email and even though the FAQ page does contain a lot of information, most of the time it will not cover all of your needs. Poloniex was hacked in March 2014 and lost 12.3% of their total BTC holdings due to this attack. The exchange issued a claim a few months later stating that all users were repaid in full.
Lending and margin fees are close to being on par with the rest of the market but in some cases, they can exceed your expectations. 15% of the interest earned by a lending customer will be collected by Poloniex as a lending fee. Futures trading maker/taker fees are at -0.026% / 0.075%. Depositing crypto comes with zero fees but withdrawals have a wide range that can go from a few cents to tens of dollars in USD value.
Pros and Cons
- Wide range of tradable altcoins
- Margin trading for altcoins
- High liquidity
- Frequent DeFi coin listings
- No verification needed
- Reasonable trading fees
- $10k USD daily withdraw limit for unregistered users
Even though Poloniex isn’t the best choice out there, it does come with a fair share of convenience and simplicity. The fact that it doesn’t have a KYC requirement makes cryptocurrency trading a lot easier for all of its users. All deposits are credited to the user as soon as they are confirmed on the network. In some cases, the exchange will request a few more confirmations than the network but all of this information is very clear and transparent.
Apart from the pros, there are a few cons to consider as well:
- Customer support replies usually take a few days
- High withdrawal fees for certain cryptocurrencies
- Occasional server issues and unreliable uptime
- No fiat deposits
- Not available in the US
If you use Poloniex long enough you will notice slow loading times from time to time. When the markets are busy, you can also expect some downtime or unscheduled maintenance.
How Poloniex Compares to Other Exchanges?
As stated above, trading cryptocurrency is fairly easy and cheap on Poloniex but fiat deposits aren’t an option. They do offer a service where users can purchase crypto with credit cards but the transaction fees are not very attractive. Purchasing Bitcoin on Poloniex with your credit card would add a 3.5% or $10.00 fee, whichever is greater. If Bitcoin keeps going up in value this 3.5% fee may become a problem. On the other hand, the variety of altcoins that can be purchased on Poloniex places it above some of the biggest exchanges out there. Beginners will have an easy time adapting to the environment while expert traders will be able to fit right in. The number of trading tools that users can utilize isn’t very big but it is more than enough to provide traders with their basic and advanced needs.
Registering on Poloniex takes less than five minutes and all you need is a working email address that you can verify. Interacting with the main dashboard is fairly easy and simple as well.
Filling orders and making trades is very straightforward. All balances are clearly visible and are accompanied by a clean order book interface. The “Trollbox” provides a place for traders to chat and stay entertained but it can also be minimized for those that don’t see a need for it. Margin trading and futures dashboards are in tone with the whole website offering an easy-to-use interface.
Poloniex’s mobile app keeps up with the UX standards of the desktop version. Limited screen space is compensated for with larger buttons and a well-organized interface making mobile trading just as easy as desktop trading.
Poloniex is one of the oldest crypto exchanges in the industry and as such the brand became a well-known name among traders. The 2014 hacks did lower the trustworthiness level with the crypto community but Poloniex managed to survive while also refunding their customers. The recent changes in governance are having an effect on this long-standing company. After Poloniex was sold in 2019 new altcoins were frequently added to the exchange, which can prove to be a risky move if most of those projects and their tokens lose value over time. In 2019 the exchange was forced to ban US-based traders from their website due to regulatory issues. This took a lot of market share away from Poloniex and in turn reduced the available liquidity on this platform.
Since deposits and withdrawals are completed within a reasonable timeframe it is safe to assume that Poloniex is reliable in that manner. The size of your deposits and withdrawals does not affect the processing time unless certain limits are exceeded and all of your activity is visible in the dashboard. Pending deposits will clearly state how many more confirmations are needed before the funds are accessible to the user.
Important things to know about Poloniex?
- No deposit fees
- No minimum limit for crypto deposits
- Easy to use and navigate
- Reliable withdrawal and deposit service
- Slow customer support
- High withdraw fees for coins and tokens with low liquidity
As far as liquidity goes, Poloniex should be able to fill all of your trades at market prices. The big-cap trading pairs will always have a rich and diverse order book but the smaller ones may pose a problem. Especially new editions that aren’t available on other exchanges. In these cases, order book prices will diverge a lot from their true market value.
Day-to-day trading is simplified on Poloniex so beginners won’t have a hard time adapting to spot, margin, and even futures trading. For now, Poloniex offers futures trading for the following coins: BTC, ETH, XRP, UNI, LINK, BCH, BSV, YFI, and TRX. Perpetual contracts can offer anywhere from 10x trading to 100x trading depending on the market of your choice.
Fiat purchases on the Poloniex platform are settled through a third-party service provided by Simplex. Users from the following countries can purchase cryptocurrencies with fiat on Poloniex: 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, Slovenia, Spain ,Sweden, Switzerland, and the United Kingdom.
Cryptocurrencies that are available for fiat purchases: ATOM, AVA, BCH, BNB, BSV, BTC, BUSD, DASH, ETH, LTC, PAX, QTUM, TRX, USDT, XLM, and XRP.
Cryptocurrency trading on Poloniex is not available in the US but others should be able to use their services with no issues and no verification requirements.
How to register on Poloniex?
Use the “sign up” button on the homepage and simply enter your email address. The instructions on how to complete the registration process will be emailed to you shortly. After the email address, you used is verified, you can start using the exchange instantly. Adding 2FA protection is recommended but it also comes with benefits tied to account levels.
What features and limits are traders eligible for?
Level 1 account tier allows customers to access unlimited trading, unlimited deposits, $10,000 per day in withdrawals, and lending simply by entering their email address and password and verifying their email. More information about account levels can be found here.
Does Poloniex require KYC?
There are no KYC requirements for cryptocurrency trading on Poloniex. Those that feel comfortable with $10k daily withdrawal limits will have no need to undergo a verification process on this exchange. Level 2 verification does require an ID verification process but it moves the daily limit from $10,000 to $500,000.
Is Poloniex good for beginners?
Yes. The fact that there is no KYC requirement along with a very straightforward registration process makes Poloniex beginner-friendly. Wallet management and asset trading is very simplified although some beginners may find it hard to transfer their funds between different markets such as Futures and Margin. If they do run into trouble the FAQ page can serve as a great source of information. Sadly, if they do need assistance from the support team, they will have to wait a few hours and in some cases days.
From its inception to this day Poloniex has been tested more than a few times. The 2014 hack was a big lesson that this platform had to learn the hard way. Since then they have been struggling to keep the platform up during busy days but as more time passes those issues are less frequent. The pleasant and straightforward UX is probably a trademark for Poloniex but their declining liquidity is slowly putting them behind their competition.
Their recent additions on the exchange are mostly projects related to decentralized finance which is still very speculative and insecure. This decision was made by the new management that took over in 2019 so there is still time to determine if it was the right call or not.
When it comes to trading and interacting with Poloniex, there isn’t much to say that hasn’t already been said. It is very easy to get started with the platform but once issues start arising and there is no customer support to assist you, you might be looking for alternatives. At the end of the day,
Poloniex should still be considered as a viable option for traders that are looking for liquidity and features. Margin and Futures traders will find it easy to automate their orders both on the buying and selling side.
As for those that want to buy some cryptocurrency with fiat, they will probably have to look into other options because the fees on Poloniex rise with the market. A 3.5% fixed fee could make you spend over $100 for a single transaction in fees alone.