Poloniex is one of the leading cryptocurrency exchanges in the world. It’s based in the United States and offers all the features that traders search for including advanced trading features and maximum security.
Poloniex was launched in 2014 and was recently acquired by Circle. The goal is to make the platform the first regulated exchange by registering it with the FINRA and the SEC as a broker/dealer. The new owners also have plans to expand the platform into the Asian market.
Ever since launch, the exchange has shown consistency when it comes to having the top trading volumes for altcoins. It also boasts an exceptional number of trading pairs. However, unlike other exchanges that allow one to exchange fiat currency for crypto and vice versa, Poloniex only deals with cryptocurrencies.
For this reason, beginners will find it hard making their first crypto purchase. Also, the features and layout of the exchange are more geared to experienced traders. As of the time of writing, the platform doesn’t have a mobile app which makes it challenging to use when one is on the go.
Features That Users Will And Developers Will Love
Poloniex boasts many features that experienced traders will appreciate. It has detailed charts that help users make educated decisions and also other efficient data analysis tools. Also, the high volume nature of Poloniex will appeal to traders that love lending and margin trading.
Developers will love the fact that there is API which makes it possible to create tools that help manage accounts and analyze data to get the most out of Poloniex. Also, traders that know how to code will appreciate the fact that most of the trading interface code is executed on the client’s side.
Where Is Poloniex Available?
The crypto exchange is based within the United States, but any user around the globe can access it as long as their country doesn’t prohibit crypto trading. The one good thing about the platform is that it doesn’t need to meet finance and banking regulations since it only deals with crypto to crypto exchanges. It’s highly unlikely to meet restrictions from using the platform in any nation.
Cryptocurrencies On Poloniex
New users will love the fact that the exchange supports many cryptocurrencies. Currently, the platform has 97 trading pair which makes it highly likely for one to trade the crypto they want. Click this link here to see the full list.
The only drawback is that one has to make deposits in crypto without the option of using a bank transfer or credit card.
However, the solution lies in storing the value of your deposit in Tether (USDT). The crypto coin is directly linked to the US dollar. Therefore, one USDT should be equal to one USD. It’s a feature that gives traders peace of mind given the high volatility nature of cryptocurrencies.
How To Create An Account On Poloniex
New users will find creating an account on Poloniex quite easy especially compared to other exchanges. Since the platform only uses cryptos and no fiat currencies, the lack of regulation it has to follow allows the platform to make the signup process easy and less invasive. It also has a very friendly user interface.
It’s important to note that users can only create one account otherwise they risk getting suspended or kicked out of the platform.
However, since the exchange does not support direct fiat-crypto purchases, users will have first to buy Bitcoin on an exchange like Coinbase and then send it to Poloniex where they can start trading.
Account Verification Levels Available On Poloniex
The first level of verification requires one to input their name, email address and country of residence. It allows a user to exchange, trade and lend. However, one can not withdraw more than $2,000 a day at this level.
The second level better known as two-level verification requires a user to input their postal address, physical address, date of birth, passport and phone number. One also has to upload their passport and ID photos. Once the account is approved, the limits of deposits and withdraw increase to $25,000.
The final verification requires one to contact the customer support directly to get approval. It’s for those that need higher limits.
Trading On Poloniex
Its simple to trade on the platform. To start, one has to make sure that they have deposited enough funds on their account. Certain coins require a minimum deposit which you can check before trading.
Once everything checks out, select the appropriate tab on the markets. Then select the tab for the crypto you want to trade and proceed to choose a trading pair.
From here you can choose to buy or sell by inputting your desired price and the number of coins you want to buy. You can manually enter an amount by entering the lowest ask price or you can choose an order from the order tab and hit buy. Here the system will automatically search for a counterparty.
Poloniex is a leader when it comes to margin trading. The feature is quick and efficient to use with peer-to-peer functionality that allows one to borrow and begin margin trading. A user can use the platform to secure trading funds and also work with other traders using the lending feature.
Fees Charged On Poloniex
Fees help any platform to sustain itself. However, new users will find its fees quite favorable. The platform has a maker-taker and volume-tiered fee schedule. Depending on the level that a user is at, it’s possible to view their Trading Tier Status on the account page.
However, the higher the trading volume, the lower the fees.
Below is a table of the fees charged on the platform. The makers represent those that create an order within the order book while takers place orders that match the maker’s request.
Simply put, makers make the market liquidity while takers take the liquidity off the market. The fees of makers are less compared to that of takers to encourage market liquidity.
In conclusion, Poloniex is for the traders that are looking for a reliable exchange platform with many crypto trading pairs.and also additional features like margin trading and lending.