Poloniex Review – Exchange Features, Trading Fees, and Security

Exchange Reviews / 25.07.2019

Poloniex operates as one of the leading cryptocurrency exchanges in the market today. The network earned this reputation by remaining innovative and always seeking to provide users with more protection. For example, the Poloniex exchange was one of the first crypto companies to seek regulatory approval from FinCEN actively. It’s also one of the oldest exchanges still in operation today.  

Benefits of The Poloniex Exchange

Poloniex exchange rose to fame due to its simple user interface and appealing design. New users can easily navigate the platform to conduct trading activities of all types. Additionally, the network provides unlimited deposits, making it an ideal option for all types of trading strategies. 

  • Wide selection

Poloniex supports a healthy selection of coins presently. You can trade 110+ cryptocurrencies using the exchange. However, it should be noted that not all assets are available in all countries. Poloniex is regulated. Therefore, it tailors its coins to each region based on regulatory requirements.  

  • High Liquidity

Traders enjoy high liquidity on this platform. You can always find trading partners to exchange your assets with. This high liquidity is one of the main draws to the exchange. 

  • Low Fees

Another advantage gained by Poloniex users is reduced fees. The platform has a fee rate that is slightly less than its competitors. These lower fees help to encourage more trading activity across the network. 

  • Security

Poloniex integrates industry-standard encryption technology to keep your investments safe. The website relies on SSL tech to provide you with added security. Additionally, the network introduces an advanced auditing system that monitors and tracks all exchange activates to prevent fraudulent or malicious actors from stealing your digital assets. 

Poloniex’s security precautions also extend over to individual users. Impressively, 90% of users’ funds remain stored in cold storage wallets. Additionally, you must complete 2-factor authentication (2FA) to withdraw these funds from the network. 

  • VIP Accounts

For professional traders, Poloniex has made some special concessions. The VIP account feature provides these users with a plethora of discounts and features that regular users can’t access. Higher trade limits and lower fees are just some of VIP customers’ benefits when they qualify for this style of account. 

How Does The Poloniex Exchange Work

Poloniex is a custodial exchange. Custodial exchanges require you to load your funds onto their network before trading. This exchange is fully regulated and can offer fiat to crypto trading services in line with their regulatory status. As a regulated exchange, users gain an extra layer of comfort when they trade on Poloniex. 

Mobile App

A large portion of Poloniex trading volume is conducted via the mobile App. This free application is available on both Android and iOS operating systems. Unlike many competitors, Poloniex’s mobile app supports all features available on the web exchange.

Margin trading

Poloniex also supports advanced trading strategies such as margin trading. Users can gain leverage in their trading positions utilizing this service. Notably, you can also earn interest by lending out your cryptocurrency to other traders seeking leverage via this system.  

History of The Poloniex Exchange

Poloniex has been operational since 2014. In its early days, Poloniex’s main office of operation was located in San Francisco. Eventually, the network relocated to Delaware. Tristan D’Agosta founded Poloniex. D’Agosta.

In March 2014, Poloniex was the victim of a massive hack that saw the platform lose 97 Bitcoins. The platform used the hack to sure up users as it quickly established a repayment mechanism for anyone affected in the incident. In 2016, Poloniex became the first exchange to list Ethereum (ETH). Nowadays, nearly every exchange supports ETH. 

Full Circle

In 2018, the US-based payments processor Circle acquired Poloniex for $400,000. The acquisition brought along with it some major changes to the network. For one, it introduced strict KYC verification. This integration was part of a larger strategy to gain market reach within the US.  

In July 2019, Poloniex announced a partnership with the payment processor Simplex. This agreement allowed Poloniex to begin accepting both debit and credit card payments. Users were now able to purchase crypto directly using their credit cards. 

In November 2019, news broke that an investment group had acquired Poloniex from Asia, including Tron’s founder Justin Sun. The news helped drive more interest in the exchange. This acquisition also led to the creation of Polo Digital Assets Ltd as a company to oversee Poloniex. It was at this time developers moved the exchange’s operations out of the US and to Seychelles. The move was accompanied by a full revamp of the web and mobile app UI.

Wink

Recently, Poloniex ventured into the Decentralized Exchange (DEX) sector with its WINK exchange. WINK is non-custodial, meaning it facilitates wallet-to-wallet trades versus a centralized network. DEXs are considered the natural evolution of exchanges because they reduce hacking risks. Since no users’ crypto is stored directly on the network, there’s no financial incentive for hackers to attack the platform.

How to Use The Poloniex Exchange

Using Poloniex is simple. The registration process begins with a few requirements. You need to provide both an email and a password. From there, you will need to check the User Agreement box and click on the Sign Up icon. All users begin as a level 1 user. This designation allows you to trade cryptos directly but falls short of allowing fiat to crypto purchases. 

Once you complete full KYC requirements, your account raises to level 2. Level 2 accounts gain access to fiat-crypto trading pairs and other network features, such as credit card purchases.  

Poloniex – A Recognizable Name and Reliable Platform

Poloniex remains one of the most recognized exchanges in the market. Despite having changed hands, Poloniex is still very popular among traders. This exchange has a strong community of users that have remained with the platform through thick and thin. Consequently, the Poloniex exchange is set to remain a strong option for traders for the foreseeable future.

David Hamilton aka DavidtheWriter is a long time Bitcoinist and cryptocurrency journalist. Currently, he has over a thousand articles published on blockchain technology. His expertise and experience makes him one of the most reputable writers in the sector.