Cryptocurrency exchanges are frequently used by clients on a daily basis.
There are several well-established exchanges available online and Poloniex is one of the most popular ones.
They are very diverse in their protocol as they support Bitcoin and most of the altcoins.
Founded by Tristan D’Agosta in 2014, Poloniex doesn’t provide transparent details of their Governing Body due to some anonymity reasons. Operating from San Francisco, California, they offer cryptocurrency service to users around the world.
Open an account
Creating an account is a very simple process where users will need to provide some personal information and confirm their email account. Initially, the withdrawal limit is set at $2,000 USD and after the identity verification which takes a couple of days, the withdrawal limit is increased to $25,000 USD.
While Poloniex doesn’t support Fiat currency, it accepts Bitcoin and most of the altcoins available on the market, such as Litecoin, Ethereum, Dash, Monero, Zcash etc. Users can check the list available on the official webpage Poloniex to see the list of accepted cryptocurrencies.
Poloniex is well known for their maker-taker protocol which allows the makers to trade at lower fees.
As a result, makers tend to outbid each other which results in market liquidity. The diverse nature of the Poloniex tends work better under this protocol. You can find all the required info regarding the “fees” on the official Poloniex website.
There is a trading screen on the webpage that includes several trading information tools, such as multiple timeframes, candlesticks, Bollinger bands and Fibonacci levels. The platform is divided into four primary cryptocurrency markets and they are, BTC, ETH, XMR, and USD. Detailed trading info about these coins can be found in their corresponding section. There are options of ‘buy’, ‘sell’, and ‘stop-limit’ for the users in terms trading with any of the cryptocurrency. Poloniex offers margin trading and 2.5x leverage on some cryptocurrency pair, such as BTC/ETH, BTC/XMR etc.
Poloniex exchange has a great interface which is very easy to use. The website has pretty good design and it provides a reasonably swift service for all of the 200 trading pairs. Clients can access the website from their mobile devices even though the exchange do not provide any android or iOS. On the downside, Poloniex offers a below average customer service for the users through email, ticket and troll box service.
Poloniex has a two-factor authentication service as a security protocol. Clients need to maintain this protocol for both login and withdrawal. The exchange service states that cold storage is used to hold customer funds. The site is said to be on a 24/7 supervision to prevent any unwanted activity. The site underwent an attack, two months after going mainstream, and 12.3% Bitcoin (valued at $50K at that time) was stolen by the hackers. The CEO of the company, Mr. D’Agosta quickly went public about the incident and opened up about the situation. The security glitch was successfully fixed and the company received a lot of praise for their efforts which helped to restore their face value.
So, the overall picture says that Poloniex offers good liquidity, major coverage of cryptocurrency and marginal trading system. On the other hand, it doesn’t accept any fiat currency, doesn’t provide a good customer service and there’s always the chance of pumping and dumping.
Comparing all the factors and other exchanges we can conclude that Poloniex is one of the better exchanges services available on the network.