Poloniex is a popular cryptocurrency exchange for the retail trader. Many beginners have learned how to trade cryptocurrency on the exchange that “ takes the crypto out of crypto”. Since it launched in 2014, however, the exchange’s leading market share has slipped as over 200 exchanges have entered the market.
In 2018, Poloniex’s fortunes began to change when social payment company Circle bought it for $400 million. Circle is integrating its payment services and institutional trading with Poloniex’s retail trade platform.
Can this one stop crypto trading shop regain a marketing leading position? We have conducted an in-depth review of fees, features, and pros and cons to assess how the newly formed Circle-Poloniex compares to other crypto exchanges. Our conclusion is a fully integrated retail and institutional trading business will allow Poloniex to better compete with improved services, liquidity and pricing.
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What is Poloniex?
Poloniex is in the midst of major changes. The unregulated crypto-to-crypto exchange is adding trading features for large traders and plans to become the first regulated crypto exchange in the US.
With these changes, Poloniex seeks to regain its perch as a leading crypto exchange. In 2016, Poloniex was a top 10 exchange to buy cryptocurrency. Poloniex, now a division of social payment service Circle, offers over 100 crypto pairs to trade.
With the acquisition of Poloniex, Circle is creating a platform for OTC cryptocurrency trading and payments for hedge funds and big banks like JP Morgan and Goldman Sachs, a part owner of Poloniex. Circle has significantly enhanced the offerings of Poloniex.
Poloniex began promoting the availability of institutional accounts two months after being bought by Circle. Circle has an active OTC service for institutional traders with monthly volume in excess of $2 billion. Circle Research provides in-depth crypto market analysis and how-to tutorials.
The OTC, block trading and other trading resources being introduced by traditional retail crypto exchanges is a clear indication that the most active exchanges are seeing demand from hedge funds and investment banks. The exchange plans to follow the regulated model espoused by New York’s Gemini exchange but also will compete with the deregulated Kraken exchange on the West coast.
Poloniex is a top 100 crypto exchange, ranking 83rd with a market cap of $14 million on Coinmarketcap.com.
How does the Poloniex exchange work?
Poloniex provides cryptocurrency-to-cryptocurrency trading on over 100 pairs, margin trading and lending on a desktop and app. Verified users can apply to list tokens on the Poloniex exchange, which also provides access to large traders through co-listing on the Circle Invest and Circle Trade exchanges.
Poloniex is the only exchange to trade and redeem ICO ATOMS. ATOMS are the tokens of Cosmos, a network of interconnected blockchains aiming to solve current blockchain interoperability and scalability challenges. Poloniex will provide BTC and USDC markets in ATOMs.
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74% of retail investor accounts lose money when trading CFDs with this provider....
Rating
4.5
4.5
4.5
5
For Beginners
Instant Verification
Mobile App
Wallet Service
Coin Selection
0
0
0
0
Rates
Trading fees
0.1%
0.50%
Spreads
Spreads
Deposit fees
N/A
N/A
N/A
N/A
Withdrawal fees
N/A
N/A
N/A
N/A
Additional features
Regulated
FCA
FCA
CBI, MiFID
CySEC
Min.Deposit
$10
$2
$100
100 EUR
Leverage
1 - 100x
N/A
1 - 30x
N/A
Latest prices by currency
Bitcoin
Ethereum
XRP
Tether
Litecoin
Bitcoin Cash
Chainlink
Cardano
IOTA
Binance Coin
Stellar
Bitcoin SV
Payment methods
Bank Transfer
Credit Card
Giropay
Neteller
Paypal
Sepa Transfer
Skrill
Sofort
What cryptocurrencies does Poloniex support?
In addition to the cryptocurrency majors and alt coins, Poloniex trades the Circle USDC stablecoin. Traders can now buy Ethereum and BTC USDC pairs. Poloniex is also the main exchange to buy Ripple . About 5 percent of Ripple volume is on the Boston-based exchange.
Traders can choose from the BTC, USDC, ETH, XMR or USDC base cryptocurrency to trade against the following coins:
If you are a citizen of these countries residing in an approved country, you can proceed with the registration process.
At this time, Poloniex does not offer service to residents of:
Washington state (WA)
New York (NY)
New Hampshire (NH)
Fees & limits
Trading fees for buyers (makers) and sellers (takers) decline on a siding scale based on increasing trading volume.
Maker
Taker
30-day Trading Volume Volume
0.08%
0.20%
0.02%
0.15%
0.00%
0.10%
≥ $20m USD
Margin Lending Fees are 15% of earned interest by the lending customer.
Poloniex Dashboard
The novice trader will appreciate the well-organized layout of the Poloniex dashboard. The pair being traded appears on the top-left of the screen (1). The box to the right displays the base currencies and below, the currencies available to trade (2). The chart is powered by Trading View (4) and includes over 80 indicators (4).
The order form provides three order types: Buy, Sell and Stop-Limit (5). The order book below makes it easy to follow the market action while placing a trade. Below the order form is the Maker Depth chart, Open Orders, and Trading History (not shown).
How to Buy Cryptocurrency on Polloniex: Step-by-Step Tutorial
By registering for a Polloniex account, you can gain full access to the crypto-to-crypto exchange to trade, trade on margin and use your coins to act as a margin lender. The base currencies are Bitcoin, Ether, Monero, USDT and USDC.
To trade USDC, though, you first need to open a Circle account and go through its strict sign up process. Circle-Polloniex could improve the user experience by streamlining this process between the two exchanges.
Step 1: Register your account
Click on the Sign Up icon and fill in basic information. You will be asked for your country of residence. Follow the link in the confirmation email to activate your account. You will then be asked to fill in your address, phone number and other personal information. Confirm.
Step 2: Verify your identity
The Start Identity Verification page pops up. Press Start. You will require a Passport, National ID or Driver’s license. Upload or take a photo of the ID. Next, take a photo of your face for face verification. To keep your account secure, remember to set up two-factor authentication. This is done by downloading the Authy or Google Authenticator app. The app will generate a code to use with your email and password to sign in.
Poloniex does not allow you to start trading with a basic account without verifying your identity. But once you complete the verification process, you have the assurance of knowing that all traders on the exchange are verified.
Step 3: Fund your account
From the trading screen, under Balances on the top-right, click Deposit. A list of all coins on the exchange will appear. Click on Deposit beside the coin you want to deposit. A deposit address will be generated. Go to your wallet, choose the coin you are depositing and copy the deposit address.
Step 4: Buy cryptocurrency
Choose the base currency you want to trade (as shown in the desktop preview). From the Order Book, click on the price you want to buy, in this example, the ETH/USTC pair at (1). At a price of $1,670.049, 10 ETH are for sale. Click on the price and it appears in the Buy order box (2).
Enter the amount you want to buy (3). We are going to buy 1 ETH. The cost in USDC is $167.49. Since each USDC is backed by $1, the price is USD 167.49. Click Buy (4) to place the order.
Step 5: Withdraw your funds
To withdraw, click on Withdraw beside the coin you want to withdraw. Ensure you have a wallet that accepts the coin you want to withdraw. Fill in the amount you want to withdraw. Enter the address of the wallet you want to withdraw to.
Is Poloniex regulated?
Poloniex is not a regulated exchange. In 2018, it withdrew its margin and lending products for US customers to comply with US securities regulations. Under its new owner Circle, Poloniex plans to become the first regulated US exchange.
Is Poloniex safe?
In the ICO Ratings Exchange Security Report, Poloniex ranked an impressive third on security among 135 exchanges. Poloniex was one of only three exchanges to pass all four benchmarks of user security, domain and registrar security, web security and DoS protection.
Uses two factor identification, email confirmation of exchange actions, and checks for weak passwords
DoS attack protection
Uses role accounts to protect private information and registry lock to prevent changes on the website
Cryptographic signatures to protect the DNS cache
Strong web security against web attacks, including robot infiltration
Cold storage wallets with no “air gaps,” meaning the wallet is not linked to the internet
Facial recognition. Individual account holders can optionally activate two-factor verification.
Poloniex is not currently regulated, although its future plans are to become regulated. For now, Poloniex operates outside of the mainstream financial system and holds digital assets in offline cold storage wallets. For investors who want the security of a regulated exchange with money held in mainstream banking institutions, we would recommend an exchange such as Coinbase. The multi-asset social trading platform is launching a cryptocurrency-to-cryptocurrency exchange in Gibraltar where it will be licensed by the Gibraltar regulatory authorities.
Is the Poloniex wallet safe?
Poloniex does not have its own digital money wallet. As a general rule of safety, keep only the money you are using to trade in an exchange wallet. Keep in mind when you are using Polloniex that if you use USDC coin, you will need a wallet that supports it. The popular TrustWallet and Ledger wallets are among nine wallets that accept USDC listed by Circle.
If you have doubts as to what the best service for storing your cryptos is, you can compare the best Bitcoin wallets here.
Does Poloniex have an app?
Poloniex has introduced a redesigned mobile app. A convenient improvement over apps that tempt you to invest 25 percent, 50 percent or more of your assets, the Poloniex app allows you to choose the exact amount by moving your finger along a slider.
The app does not skimp on trade features. The order book, charts, market depth and order form, and trade history are available. On the app, these features are conveniently located in separate tabs rather than on one screen. The app is available for Android and IOS.
Is Poloniex customer service reliable?
If you are new to Poloniex, three starter videos demonstrate how to deposit funds, trade bitcoin and withdraw funds. If you need more guidance, check:
Support FAQs – FAQs are provided on all aspects of the Poloniex exchange in its knowledge base.
Email support – Contact Poloniex by email through Submit a Request.
Poloniex Pros and Cons
Pros:
Top three exchange globally for security
Margin trading and lending (outside the US) with 2x leverage
Over 100 crypto-to-crypto pairs traded
Access to Circle institutional products, including OTC trading and USDC stablecoin
Cons:
Unregulated
Poor integration with Circle products for large traders
Separate apps for Poloniex and Circle products
Limited deposit options
No wallet
Restrictions in margin trading and lending for US investors
Poloniex VS Alvexo
Even though Poloniex has been making clear efforts to improve the quality and reliability of the platform they offer, it still does not compare with an exchange like Alvexo. In fact, the platform has put in place not only efficient security and regulation measures, but they also provide educational resources accessible to all users to fully prepare them for their trading experience.
Aside from that, Alvexo also offer more trading advantages than Poloniex and those include, a better asset selection, a better trading platform, lower fees and spreads, trdaing signals and market analysis and much more.
These are just a few of the advantages offered by the exchange. To find out more about it, we recommend Visit Alvexo.
Conclusion
After introducing many traders to cryptocurrency investing, Poloniex is connecting the crypto and real economy. The Circle-Poloniex platform has enabled Poloniex to instantly add institutional-level trading features while many crypto exchanges are building out these features at a slower pace. The integrated payments platform is making it easy for traders to spend their crypto in the real economy. Future integration should make these features easier to use across the two platforms.
In the meantime, traders have other options for cryptocurrency trading on platforms like Alvexo and eToro.
Update 2024 – Going forward, the only cryptocurrencies eToro customers in the United States will be able to trade on the platform will be Bitcoin, Bitcoin Cash and Ethereum.
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FAQs
What is a decentralized exchange (DEX)?
decentralized exchange does not use an intermediary to hold customer funds and accounts. Peers trade directly amongst each other (peer-to-peer) and funds are transferred between their cryptocurrency wallets. Trader money and ID are at lower risk of being hacked. A downside of DEXs is the current lack of liquidity.
What is a centralized exchange?
A centralized exchange accepts and holds users’ deposits. Most exchanges also conduct ID verification to comply with know your customer (KYC) and anti-money laundering (AML) rules. As a repository of client money and personal identification information, centralized exchanges have a higher risk of becoming a victim of cyber hacking and theft.
Do I need a cold storage wallet to trade with Poloniex?
You can use either a hot or cold storage wallet, as long as it accepts the cryptocurrency you are depositing. Hot (online) crypto assets do face risk from cyber hacking. Cold storage involves storing your crypto assets offline on a USB drive or paper wallet, for example. The following risk measures should be taken to protect your hot and cold crypto assets:☑️ Generate and store your private keys offline☑️ Use two-factor authentication to access your wallet☑️ Use biometric identification
Can I list a coin on Poloniex?
Yes, Poloniex lists coins. However, the decision to list a coin is made on a case-by-case basis.You must have a verified account on Poloniex to list a coin. To comply with securities laws, Poloniex will not list a coin that qualifies as a security. An advantage of the new Circle-Poloniex alliance is your coin could also be listed on Circle Invest and Circle Trade and attract the attention of large investors.
Can I use autotrading robots on the Poloniex exchange?
More trading bots – automated preprogrammed trading algorithms – are being developed for cryptocurrency trading. The most common way of connecting a trading robot to a cryptocurrency exchange is an API. In contrast to many of the plug-and-play bots used in forex trading, APIs may require some technical knowledge to configure. Proprietary and popular bots can be connected to the Poloniex exchange through an API. New trading bot models are emerging. Coinbase, for example, has a OneClick™ approach to copying trading strategies. Its CopyTrader™ and CopyPortfolios™ tools can copy a whole portfolio, the most recent trade or a stop-loss of other traders in one click, allowing investors to instantly copy the trading strategy of successful traders.
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