What is Poloniex?
Poloniex happens to be a decentralized cryptocurrency exchange that provides a plethora of services that are standard within the cryptocurrency landscape, like margin trading, lending, etc., with lower fees and other useful features. Moreover, the exchange can be accessed throughout the globe, except for a handful of regions, such as the United States, for instance.
The Founding and History of Poloniex
Starting its operations in early 2014, the exchange was originally based within the United States, with the individual behind the exchange’s foundation being Tristan D’Agosta, also known by the name Busoni, who is also its CEO. Furthermore, the firm that currently owns Poloniex is Polo Digital Assets, Ltd.
However, it was only in 2018 that the firm Circle Internet Financial Ltd. bought this exchange for approximately $400 million. The following year, Poloniex spun off from Circle, and Polo Digital was newly formed as a result, with Justin Sun leading the acquisition.
6 Key Features and Services of Poloniex
Here, we will be looking at some of the services and features underlying this exchange, i.e., what may warrant one’s interest.
A Wide Range of Cryptocurrencies
The exchange currently offers more than 400 cryptocurrencies, with more being added every now and then, which should be enough for most traders in the cryptocurrency landscape.
Trading Pairs and Liquidity
As of now, the exchange offers over 600 trading pairs. And as for liquidity, CoinMarketCap has given it an average liquidity score of 252, with 0 being the most illiquid and 1000 being the most liquid. So, it isn’t that good in terms of liquidity as compared to Coinbase or Kraken, unfortunately, at least according to CoinMarketCap.
User-Friendly Interface
However, liquidity aside, the exchange’s user interface, at least, can make navigating the exchange simpler, making it more accessible to every kind of trader than some of its alternatives.
Margin Trading and Lending
Since it offers a lot of the standard features that you will come across on cryptocurrency exchanges these days, your typical margin trading and lending services are catered to here as well, with up to 100x leverage.
Mobile App Accessibility
Additionally, Poloniex also comes with its own mobile application, which you can find on both iOS and Android devices. So, if you are more of a mobile user, then you will find your needs met in this regard.
A significant portion of the cryptocurrency community trades using their mobile phones, and Poloniex, like its counterparts, caters to that particular segment. So, with its mobile application, one can manage their account, see their cryptocurrency balances, trade using various supported tokens, and more.
Customer Support and Community
Customer support here is mainly provided via email, where users submit basic contact forms to acquire support tickets. Other than that, there is an FAQ section that should answer a lot of the common queries that users may have regarding the exchange.
Which digital assets can be traded on Poloniex?
As mentioned previously, the exchange supports around 400 cryptocurrencies, which means that you will most definitely come across the more popular ones here, like ETH, BTC, and BNB, as well as some other lesser-known ones that you might be interested in investing in.
Poloniex Security Measures and Trustworthiness
Although it seems like things have been updated to industry standards now, Poloniex’s history has been filled with issues related to regulation and security. Still, it does come with a few security features that warrant discussion.
Two-Factor Authentication (2FA)
Like most exchanges these days, users have the option of setting up 2FA as an additional layer of security for their accounts. To do that, simply log into your account, click on the Profile tab, and select Security. Click on Enable 2FA and follow the instructions outlined.
Cold and Hot Wallets
The exchange strives to manage a ratio of 95% cold storage. This implies that the vast majority of users’ assets are stored offline and have ultra-tight security (requiring multisignature access). Also, Poloniex does not hold assets outside of its cold and hot wallets.
Regular Security Audits
As alluded to earlier, the exchange has suffered some devastating hacks. However, because of that, it was more or less forced to tighten its security. So, for instance, ever since those attacks, Poloniex has adopted automatic auditing of its whole exchange while enhancing its servers’ security, along with a few other measures.
Registration and Getting Started
Here, we will be discussing how you can get on board with this exchange if you haven’t already, from its registration and verification procedures to how you can make your first deposit and withdrawal.
1. Creating an Account
The registration process here can be similar to what you will find on most exchanges nowadays. So start by going to its official website and clicking the Sign Up button at the top. On the registration page, enter your email address and password, among other things, to get done with registration.
2. Verification Process
To unlock every feature the exchange has to offer, along with higher withdrawal limits, you will have to go through KYC here, of which there will be two levels for you to complete. These processes will likely include users entering their contact information, taking government ID photos, and capturing selfies.
3. Deposit and Withdrawal Methods
To deposit or withdraw on this exchange, you can start by navigating to their respective pages. On the deposit page, choose the token and the network, and then copy and paste the deposit address that will be generated into the withdrawal platform after selecting the same token and network there.
Therefore, in much the same manner, when you’re withdrawing from Poloniex, you will have to paste a deposit address into its withdrawal field.
Trading on Poloniex
Within this section, we will look at how one can place orders on this exchange, namely spot and margin.
Spot Trading
From the Trade drop-down menu on its homepage, select Spot. On the spot page, select the relevant trading pair and the order type. Hit that ? icon at the side if you want to know more about the order options.
Margin Trading
If you want to raise your profits by using leverage, i.e., borrowed funds, then you can do so by selecting Margin from that Trade drop-down menu. You can click on the User Guide if you’re new to this exchange or to margin trading in general.
Derivatives on Poloniex
Other than spot and margin trading, there are a couple of other options that might be appealing to you, such as those outlined below.
Future Trading
With futures, you have the option of utilizing up to 100 times the leverage. From the Derivatives menu, you will have grid, futures, and copy trading as options to select. And if this is your first time trading futures here, Poloniex will guide you through the process.
Grid Trading
If you are looking to automate any of your trading strategies and place multiple buy and sell orders, then Grid trading might be the right option for you. So, navigate to the appropriate page and adjust the parameters relevant to you.
Copy Trading
As the name implies, you can replicate the successful trading strategies of other users. So, navigate to the copy trading page and choose a trader that piques your interest.
Earning Interest
Like other exchanges, you have the option of earning some interest on your holdings. Simply click the Earn button from the homepage, and you will come across a list of all the tokens that you can stake or ‘earn’ from, each of which will have varying levels of interest.
Risks and Considerations
Among the few things to note here are that this exchange has had some troubles with U.S. securities regulators, where the SEC charged it with running an unlicensed trading platform in 2021, which eventually resulted in Poloniex paying more than $10 million in settlement charges.
And then there are the multiple hacks that the exchange has gone through. While all this might have been in the past, a lot of traders would treat this as a red flag, so do proceed with some caution.
Is Poloniex Suitable for Beginners?
There are trading options that beginners may find comfortable using or easy to get accustomed to. So, yes, it should be suitable for beginners.
The Future of Poloniex
From what we have gathered about this exchange, its future remains a bit uncertain due to its history and regulatory hurdles. However, despite all that, the fact that it has still managed to run through all these years since its inception all the way back in 2014 may be a good sign in terms of resilience.
Still, as stated earlier, you should be cautious whenever you are investing your hard-earned funds and be mindful of any recent developments within the landscape that could impact your investments.
Conclusion
Despite the regulatory and security concerns that have plagued its past and the fact that it’s still not available in certain areas, Poloniex’s low costs and variety when it comes to its cryptocurrency selection and trading options may still play their part in attracting the attention of any casual or professional trader.
Poloniex Review
Review and basic information of Poloniex are as follows.
| Crypto Exchange Basics | Poloniex |
|---|---|
| Official Name | Poloniex |
| Exchange Representative (Founder) | |
| Headquarters Location | |
| Poloniex Launch Date | 2014-01 |
| Number of Tradable Crypto Pairs | 798 Pairs |
| Weekly Visits | 65,691 Users |
| Overall Rating | ⭐ / 5.0 |
The rating result at the top is the result of Coin-Labs.com's overall evaluation of Poloniex.
Poloniex was rated in seven categories: fees, diversity and quality of the services provided, security capabilities, etc.
Poloniex Fee 2024
The fees charged to you for transactions at Poloniex are as follows.
| Maker/Taker Fees | Poloniex Transaction Fees |
|---|---|
| Spot Maker Fee | 0.145% |
| Spot Taker Fee | 0.155% |
| Derivatives Maker Fee | No Service Provided |
| Derivatives Taker Fee | No Service Provided |
The fees shown in the table above are Poloniex transaction fees charged to a regular user.
Poloniex Trading Volume
Trading Volumes of Poloniex are as follows. (Based on CoinMarketCap 2024-10-12 14:41:19 data)
| Trading Volume Items | Poloniex Trading Volume |
|---|---|
| Daily Trading Volume (24h) | 672,130,840,324 KRW |
| Weekly Trading Volume (7d) | 5,522,507,865,205 KRW |
| Monthly Trading Volume (30d) | 22,612,203,750,154 KRW |
| Daily Volume Change (24h) | -0.84% |
| Weekly Volume Change (7d) | -5.77% |
| Monthly Volume Change (30d) | 1.57% |
Communicate with Poloniex
You can check exchange's messenger and SNS information in the table below.
| Types | URL |
|---|---|
| https://twitter.com/Poloniex | |
| 🎺 Messenger |
FAQs
Who founded Poloniex exchange?
Poloniex was founded in 2014 by .
Where is Poloniex located?
Currently, Poloniex's headquarters is known to be located in the .
How many cryptocurrencies are tradable on Poloniex?
If you join Poloniex, you can trade a total of 798 crypto pairs.
How much is Poloniex trading fee?
Poloniex has a spot maker fee of 0.145% and a taker fee of 0.155%. On the other hand, the maker fee for futures trading is N/A and the taker fee is N/A. Please note that these fees are for regular users, and the higher your membership level within Poloniex, the lower the fees.
How much is Poloniex trading volume 24h?
Poloniex's trading volume 24h is 672,130,840,324 KRW. Furthermore, the daily trading volume is showing a -0.84% change from the previous day.
How much is Poloniex weekly trading volume?
Poloniex's weekly trading volume is 5,522,507,865,205 KRW, with a total of 65,691 users. Furthermore, Poloniex's weekly trading volume is showing a change of -5.77% from the previous week.
How much is Poloniex monthly trading volume?
The monthly trading volume of Poloniex is 22,612,203,750,154 KRW. Furthermore, this month's trading volume is showing a change of 1.57% compared to the previous month.
