The basics of crypto trading
Poloniex cryptocurrency exchange is the trading platform for the most popular digit currencies. Available currencies include 105 cryptocurrency trading pairs. The exchange also offers margin trading and lending for users who would like to trade on leverage and earn interest by the lending option of trading. Other features of Poloniex exchange are low fees (from zero to 0.20 percent) and instant transactions.
Poloniex is one of the most popular, trusted and well-known cryptocurrency exchanges in the world. On spring 2018 the platform has been included on the list of five top cryptocurrency exchange platforms by trading volume. From the beginning, the corporate office was based out of Wilmington. The exchange is incorporated in the State of Delaware (USA). Today it is headquartered in San Francisco, California. Poloniex is not so popular amongst small traders as they are not able to buy fiat currencies. Large players prefer Poloniex as it keeps money safe and secure and offers advanced and trading features and functions such as margin trade and lending. Additionally, the layout and features that the exchange includes are more geared toward experienced traders than those new to the idea of cryptocurrency.
The Poloniex platform was built in 2014 by Tristan D'Agosta. Initially, the company has been focused on the United States market and offered service to local traders. When altcoins and bitcoin have been recognized worldwide, the exchange has tended to attract traders from all over the world including Russians and traders from CIS countries.
Poloniex cryptocurrency exchange was launched in the year 2014. The service had been hacked in the first year of operation. As a result, users had lost money out of their accounts - 12 percent of the BTC on Poloniex was stolen. The company was able to absorb the loss and to return funds to its owners within several months.
Since 2016 the U.S. regulators have begun to address the challenges presented by virtual currencies. The American government has taken a proactive role. As a result, Poloniex has started to change. But trading volume is still continually growing. Service is attracted not only traders but fakers and fraudsters as well. Fraudsters created phishing sites and fraudulent mobile applications. Poloniex has the only one official website - https://poloniex.com/. The company also has a mobile version of the site. The cryptocurrency exchange has not released any mobile application and has not any plans to develop mobile apps.
The service is interacting with users who speak only English. The Russian language is not available. Trade has its own specific features. Exchange-traded volume has been led by the XRP/BTC pairs - almost 40 percent of trading volume. About 15 percent of trading volume has stemmed from XRP/USDT pairs. Total trading volume has reached $1 billion.
The platform is positioned itself as a trading platform that allows users to trade some of the world's most popular cryptocurrencies. The most commonly traded digital currency pairs are BTC, USDT, Tether, and XMR. On 26 September Poloniex introduced fifth currency – USDC (it is a stable coin issued by Circle. USDC is backed by USD). In total, the service offers 105 currency pairs for trade. It also offers margin trading and lending. By the end of 2018 users will have access only to regular trading and all other options will be abandoned due to the U.S. restrictive legislation.
Poloniex cryptocurrency exchange has a massive and largest trading volume. However, the exchange has been suffered from DDOS-attacks and traders filed lots of complaints on poor service. On February the company Circle acquired Poloniex. The circle is backed by Goldman-Sachs – a global investment bank. Circle management has plans to expand the exchange into the Asian market and to register the exchange with the U.S. regulatory authorities. Upon acquiring, new owners required all registered traders to renew their registration through identification. Trader’s feedbacks confirmed that some accounts have been frozen.
Huge trading volume is a main potential of the platform. Analysts have different views about the future of the Poloniex cryptocurrency exchange. Some analysts assume that transactions will significantly grow; others claim that frequent hacking attacks and phishing from cybercriminals can distract seasoned traders from this service.
The company plans to abolish options of margin trading and lending in this year. As a result, in 2019-2019 trading volume may decrease.
A user-friendly, convenient and intuitive interface of Poloniex has attracted traders from all over the world. Even lack of additional languages does not act as a barrier for traders. All features of the platform operation will be described in detail in the review.
Registering on Poloniex is the first step toward starting a trade. For registration you have to go to the front page and click on the button “Set up trading account”:
Registration starts by entering personal information (first & last name, country, date of birth, email address)
Finally, you have to make up a password, solve the reCAPTCHA and tick “ I agree to the Terms and Conditions of Use”.
Your e-mail address will play a role in your login. So that you do need to think up of the login.
After registration, the system will request you to verify your email address. Open your email and click on the confirmation link sent to you by Poloniex. For activation, you have to log in to your account. In the new window, log in using your email and password. You should now be able to access your Poloniex account.
Thereafter you have to enter additional personal information: complete address and phone number.
In the past, this information had been enough to start working in the exchange. Unverified users would not be able to transact more than $2,000 per day. Now verification is mandatory. To successfully pass the verification process you must provide valid/unexpired documents:
You will be asked to upload a copy of your identification document or take a high-quality image of the document’s page with a camera. It takes 24 hours to process the information. As a rule, after processing the account is confirmed and the user gets access to trade operations.
To keep your account secure it is recommended to enable two-factor authentication with entering TOTR-key. "Two-factor authentication (2FA), is a security process in which the user is required not only a password and username but also something that only, and only, that user has on them such as a piece of code which only they should know or have immediately on hand. From time to time it is necessary to check the history of connections where you can see the date, country, actions and type of device.
Upon verification of the account, you can trade, deposit and withdraw funds. You can replenish account with any active currency. The exchange does not charge fees for account replenishment. The user selects the currency he/she wants to use, gets the address of the exchange wallet and transfers funds.
The exchange charges fixed fees for withdrawal of each cryptocurrency. Withdrawal fees do not depend on withdrawal amount. You can use an online calculator to enter the transferred amount and see what actual amount will be posted on the account.
Poloniex charges fees for trading transactions. These fees are thought to be the lowest:
The trading policy is implied that the greater your trading volume, the lower your fees. Amount of fees is determined by the total volume you trade on a rolling 30 days basis. Additionally, users can be divided on their trading tier status:
Up to the end of 2018, the cryptocurrency exchange is offering margin trading and lending. In 2019 margin trading and lending will be abandoned.
Traders who just registered in the system would like to understand how to trade here. To make a trade, visit the “Exchange” tab”.
On this page user can see actual charts on the selected currency pair, price movements for the last 24 hours, and maximum or minimum prices in this time period. In the right-hand corner of the website, you can also view the convenient tab “Markets. Hit the tab and you can pick one out of the 5 major currencies and then – second currency by its name or by other parameters.
At the bottom of the page, you can view convenient calculators so that buy and sell calculations will be done automatically on this platform. From there you can place an order, look at information on the actively traded currency pairs.
If necessary you can use lending or margin trade in several currencies. Leverage is available up to 2.5X.
Opinions about Poloniex exchange are not simple. Traders note both advantages and disadvantages of the service. There is a list of advantages:
Cryptocurrencies must be bought only with fiat money. It is a principal disadvantage of Poloniex for inexperienced traders. It is impossible to deposit funds directly to the exchange. Also, the following characteristics should be listed as disadvantages of Poloniex - lack both mobile applications and the Russian version of the platform, risk of account freeze for uncertain periods of time by the exchange authorities. Nevertheless, Poloniex handles one of the largest trading volumes out of all cryptocurrency exchanges in the world.
Poloniex is going to surprise their customers with new functionality. The cryptocurrency exchange is rolling out a new feature, attempting to resurrect its place on the coin market. On July 9, the exchange made an announcement that it would allow fiat-to-crypto trading. This means that customers will be able to deposit and withdraw monetary assets by using their bank accounts. Trading crypto units with debit and credit cards will also be available on Poloniex.
The company representative has pointed out that such fiat connectivity is intended to be implemented for the first time. Previously, the exchange operated only as a crypto-to-crypto trading platform, but it has seen its market share high-speed dropdown from the ICO heydays in 2018.
Coinbase is one of the very few exchanges making crypto purchases with bank accounts, as well as debit and credit cards, a reality. Some of the other platforms supporting the functionality are Gemini, Kraken, and Bitstamp - all these accept a host of fiat currencies as well.
In June 2019, as a response to the numerous requests coming from the users the Bitcoin exchange Poloniex has re-activated a general chat, better known as Trollbox. Basically, most of the users mentioned in their posts on various forums that Trollbox was one of the main reasons to register on Poloniex, as it has always been a lot of fun.
Two weeks ago, the exchange announced that losses in the amount of 1,800 BTC resulting from the sudden insolvency of users holding marginal positions on CLAM would be distributed among the lenders themselves. In its latest announcement, the stock exchange assured users that it intends to settle accounts with them completely, “by all means”.
“We are working to achieve this goal, including (but not limited to) restoring the funds that borrowers owe to lenders. In any case, the problem of damages is being considered, ”the exchange representative writes.
We need to remind that Poloniex has to comply with strict US regulations. In May, she banned US users from trading the following tokens: ARDR, BCN, DCR, GAME, GAS, LSK, NXT, OMNI, and REP.