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.
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.
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.
In addition to the cryptocurrency majors and alt coins, Poloniex trades the Circle USDC stablecoin. Traders can now buy ETH 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:
Poloniex is a US-based cryptocurrency exchange offering cryptocurrency trading globally.
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)
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%||< $1m USD|
|0.02%||0.15%||< $20m USD|
|0.00%||0.10%||≥ $20m USD|
Margin Lending Fees are 15% of earned interest by the lending customer.
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.
Trade cryptocurrency on Poloniex
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.
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: Withdrawal 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.
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 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.
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.
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
Poloniex VS Skilling
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 Skilling. In fact, the platform has put in place not only efficient security measures to prevent hackers from attacking users’ funds, but they also have risk disclaimers and educational resources accessible to all users to fully prepare them for their trading experience. Aside from that, Skilling also offered more trading advantages than Poloniex and those include, a better asset selection, an improved trading platform design, lower fees, and lower minimum deposit and much more.
These are just a few of the advantages offered by the exchange. To find out more about it, we recommend reading through our Skilling review. You will also find a step-by-step guide on how to get started with your trading experience on the platform.
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 Skilling. They are a safe broker and can start with only $10.
A trader is exposed to higher risks when trading on an unregulated exchange. If you lose money on an unregulated exchange due to fraud, it will be more difficult to seek remedy through a legal or insurance claim. On a regulated exchange, the investor has more protection against loss. If the broker you have deposited money with goes bankrupt, for example, the US FDIC or UK FCA provide deposit insurance.
A 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.
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.
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
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.
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.
- 1 Is Poloniex recommended?
- 2 What is Poloniex?
- 3 How does the Poloniex exchange work?
- 4 What cryptocurrencies does Poloniex support?
- 5 🏳️Supported countries
- 6 Fees & limits
- 7 Poloniex Dashboard
- 8 How to Buy Cryptocurrency on Polloniex: Step-by-Step Tutorial
- 9 Is Poloniex regulated?
- 10 Is Poloniex safe?
- 11 Is the Poloniex wallet safe?
- 12 Does Poloniex have an app?
- 13 Is Poloniex customer service reliable?
- 14 Poloniex Pros and Cons
- 15 Poloniex VS Skilling
- 16 ✔️Conclusion
- 17 FAQs