The Poloniex exchange was founded in 2104 by Tristan D’Agosta, based in California, San Francisco. Poloniex primarily serves crypto traders from the United States. Nonetheless, the exchange has emerged to be extremely popular among cryptocurrency investors worldwide. This is unsurprising given that the Poloniex platform provides a wide variety of altcoins that may be traded against Bitcoin. Follow Betomon to learn more about the Poloniex exchange!
What Is Poloniex exchange
Poloniex supports many trading orders such as Buy order, Sell Order and Stop limit order. You can perform these orders when trading Bitcoin, Ethereum, Monero, and Tether. Additionally, because of the high liquidity that Poloniex offers, 99% of the Tether trading volume for 2017 was carried out on the exchange. The Poloniex exchange also accepts margin trading, with leverage up to 2.5x for some pairings.
Furthermore, a lending option that is exclusive to the Poloniex exchange for cryptocurrencies is provided to its traders. This feature allows you to either offer or demand a loan in return for a predetermined interest rate.
Deposit and Withdrawal Options
At the moment, fiat currencies are not supported at Poloniex. Only cryptocurrency deposits are accepted. The most frequently traded coins on the platform include:
- Bitcoin
- Dash
- Ethereum
- Litecoin
- Monero
- Zcash
Nevertheless, Poloniex also offers more than 80 different kinds of cryptocurrencies.
Fees and Charges
Poloniex applies the industry standard maker/taker model for its trading fees, which is supposed to encourage liquidity. For Poloniex, liquidity is very crucial, especially because the exchange supports over 80 different kinds of cryptocurrencies. The following table provides you with an overview of what Poloniex sets in terms of maker/taker fees:
| VOLUME | MAKER’S FEES | TAKER’S FEES |
| < 600 BTC | 0.15% | 0.25% |
| 600 to 1200 BTC | 0.14% | 0.24% |
| 1200 to 2400 BTC | 0.12% | 0.22% |
| 2400 to 6000 BTC | 0.10% | 0.20% |
| 6000 to 12,000 BTC | 0.08% | 0.16% |
| 12,000 to 18,000 BTC | 0.05% | 0.14% |
| 18,000 to 24,000 BTC | 0.00% | 0.12% |
| 24,000 to 60,000 BTC | 0.00% | 0.10% |
| 60,000 to 120,000 BTC | 0.00% | 0.08% |
| > 120,000 BTC | 0.00% | 0.05% |
Lenders can receive a fixed 15% charge plus interest. However, there are no fees associated with deposits or withdrawals.
Privacy and Security
Poloniex’s verification process can be performed easily and consists of three steps. You must authenticate your name, email address, and country of residence for the first stage. After finishing, users can trade on margin and withdraw up to $2,000.
You must provide additional information at the second level, involving your address, phone number, and a scanned copy of your photo ID. Poloniex will need several days to check every detail that is submitted during this stage of the verification procedure. After being validated to level 2, you will be able to withdraw up to $25,000. Users who want to withdraw more than $25,000 will be required to finish the third level yet the requirements are not publicized.
In terms of security, Poloniex implements two-factor authentication for withdrawal authorization and account login. Moreover, an email confirmation is required to process a withdrawal. Most of Poloniex’s clients’ money is held in cold storage as an extra safety measure. The platform is also continuously monitored for any unusual behavior.
Customer Service
Poloniex’s customer assistance isn’t one of its strengths. Email tickets are the sole way to get in touch with the support staff. Regretfully, it takes a while for the request to be responded to. Although you can consult the FAQ section, it only addresses basic questions and doesn’t have extensive information.
Does Poloniex offer security for your cryptocurrency?
Poloniex has a poor security record, and there is cause for concern given its association with Justin Sun, the controversial founder of TRON. Over the years, Poloniex has encountered several problems. Betomon will show you a quick breakdown of the most notable:
- In March 2014, hackers stole 97 Bitcoins from Poloniex, accounting for 12.3% of the exchange’s total value. The platform responded by reducing client balances by 12.3% and raising transaction fees in order to raise funds. By July of that year, it had paid back all of its consumers.
- In December 2019, a set of account emails and passwords from Poloniex were leaked on Twitter. A Poloniex spokesperson stated that just 5.5% of the emails on the list had corresponding accounts. Such users needed to change their passwords.
- In August 2021, Poniex committed to reimburse the SEC for more than $10 million as the accusations pertaining to running an unregistered online digital asset exchange.
There is also the TRON connection. Justin Sun, the founder of TRON, is a shareholder in the group that acquired Poloniex. According to a 2022 report, Sun allegedly had significant control over Poloniex and had instructed staff to falsify the KYC (know your customer) identification verification procedure in order to expedite user acceptance.
Furthermore, the report states that Sun ordered Poloniex engineers to search for Bitcoin which users had mistakenly transferred over the years into the incorrect kind of cryptocurrency wallet. 230 BTC in total were transferred to the Poloniex public wallet from various cryptocurrency wallets. Because of the enormous volume of money passing through the shared wallet, it is hard to determine where it went from there.
Because Poloniex isn’t completely transparent about the protection measures it provides, it’s difficult to analyze its security. It does not specify how much cryptocurrency it holds in cold storage or whether it is insured, nor does it have a specific security page on its website. Nevertheless, there are several strong safeguards that Poloniex has in place that we are aware of:
- Two-factor authentication (2FA)
- Notifications via email when a new IP address logs into an account, with the ability to freeze the account if the login is not permitted.
- A bug bounty program
It’s difficult to trust Poloniex because of those problems. If you do use it, you might want to store your cryptocurrency yourself to keep it safe.
Poloniex Pros and Cons
Advantages
- Low costs at any trading volume: Poloniex has among the lowest fees of any cryptocurrency trading platform, with the highest fee tier starting at 0.155%.
- Simple and active trading platforms: You can use an active trading platform, a basic purchasing form, or connect to Poloniex’s decentralized exchange with a compatible wallet.
- Diversity of supported currencies: Buy and sell 400+ different currencies at the current market rate.
Disadvantages
- Lack of advanced order types: You may only enter buy and sell orders with market, limit, or stop-limit parameters.
- Ineffective customer support: It receives a lot of complaints from both present and former clients on the poor quality of the customer service provided.
- History of hacked accounts: In the latter part of 2014 and 2020, Poloniex was attacked by hackers who took 12.3% of the exchange’s coins in the first attack and nearly $4 million in Bitcoin (about 6% of the exchange’s holdings) in the second.
FAQ feature
Can I Deposit USD To My Poloniex Account?
Unfortunately, Fiat currencies are not supported on Poloniex as it is only a pure cryptocurrency exchange.
How Can I Make A Purchase On the Poloniex exchange?
You must first hold some cryptocurrencies that the Poloniex exchange supports in order to trade on the platform.
What Are The Fees Charged By Poloniex?
Poloniex charges a very low fee structure with a maximum of 0.25%. The fee applied by the exchange will decrease as your trading volume increases.
Why do I keep being logged out of the website?
This might happen because your IP address changed halfway through your login session. Another possible reason is that you are logged in from a different web browser or computer.
Does every state in the United States have access to Poloniex?
No, Poloniex does not currently provide services in New Hampshire, New York, or Washington.
Conclusion
Poloniex can be classified as a real crypto-to-crypto exchange in terms of usability. The exchange has one of the greatest selections of cryptocurrencies to trade with. Besides, in the cryptocurrency market, it also has the highest percentage of Tether trading volume. It is the first cryptocurrency exchange that provides a lending service.
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