Poloniex is a popular centralized cryptocurrency exchange that enables users both experts and novices to buy and sell cryptocurrency at a low fee charge and also offers other different services to its users.
Poloniex was founded in January 2014 by Tristan D’Agosta. The exchange was launched in Delaware, USA. In 2019, the company went through some major changes in ownership and was relocated to Seychelles. There were also changes in the mode of operation of the exchange.
In 2014, shortly after the launching of poloniex, the company became a victim of high profile hacking of its system and lost about 12% of its BTC assets. Luckily the value of bitcoin in 2014 was not very high and the company was able to repay its users in full through the increment of its transaction fees.
Poloniex was also the first exchange platform to list Ethereum (ETH). In 2018, poloniex was acquired by Circle (a payments company) for $400 million.
FEATURES OF POLONIEX
Some of the major features of poloniex include its easy user interface, it supports multiple cryptocurrencies, charges a low transaction fee and also has a mobile app available for both Android and IOS users.
SERVICES OFFERED BY POLONIEX
- Trading (buying and selling)
Poloniex users can buy, sell, and trade over 90 cryptocurrency pairs and it also supports spot trading and a low fee margin trading with leverages up to 2.5x.
- Margin lending and borrowing
With this service, you can make profits by lending your cryptocurrency to other users and you can also borrow crypto assets from other users in the system.
- Poloni DEX and IEO launchpad
The platform also grants users access to its launchpad so that they can generate funds for their projects and also allows users to invest in upcoming projects in order to earn more profits.
HOW DOES POLONIEX WORK
You can create an account with poloniex by visiting the official website of poloniex, clicking on create your account, and then filling the form provided with the required details and clicking on Register.
- Account verification
Before you can start trading on poloniex, you need to verify your identity. To verify your identity, you need the following documents:
- National ID
- Driver’s license
- Proof of residence
- Payment method
The method of payment accepted on poloniex includes credit/debit cards and cryptocurrency.
- Supported currencies
No fiat currency is supported on poloniex, but it accepts the use of credit/debit cards to purchase cryptocurrencies.
- Supported countries
The exchange can be accessed by users in all countries except the following countries: the United States, North Korea, Cuba, Syria, Sudan, and Iraq.
- Transaction fee
Poloniex also applies the taker and maker model of transaction fees. The transaction fee charged by the platform is one of the lowest when compared to other exchanges around and it also depends on the type of account you have on the platform.
Poloniex does not charge any fee for the deposit of cryptos while the fees charged for withdrawal is determined by the cryptocurrency you are withdrawing. The withdrawal fee for Bitcoin is 0.0005BTC, dogecoin is 20DOGE, Ethereum is 0.01ETH, Dash is 0.01 DASH and Litecoin is 0.001LTC.
If you are a lender using the margin lending service you will be charged a 15% fee from the interest you earned from the borrower.
The trading fee includes a makers fee of 0.15% and a takers fee of 0.25% for transactions that involve low trading volume. The larger the trading volume the lower the trading fee.
- Transaction limit
The limit depends on the level of verification you have completed on your poloniex account. If you have only verified your name, email address and country of residence you will have a withdrawal limit of $2000 worth of crypto and will be able to trade on margin.
When you provide the other documents needed for the next level of verification, your withdrawal limit is increased to $25000.
The exchange applies the use of the 2- factor authentication, withdrawal authorization, and email confirmation when logging into your account and making a withdrawal.
- Customer support
The customer support can be contacted through the use of the email address to submit a complaint ticket and a FAQ section is available. A lot of users have complained about the slow response of customer support.
Even though poloniex has a lot of advantages such as its low transaction fee and a lot of services users can benefit from, it also has its own share of disadvantages such as its poor customer service, and the fact that it does not support any fiat currency but stablecoins can be used in its place in transactions. You need to already own the supported cryptocurrency which you then deposit into your poloniex account before you can start trading.
Despite the mentioned disadvantages, poloniex remains one of the most famous and widely used cryptocurrency exchanges out there.