Poloniex is another platform for trading cryptocurrency priding itself since its inception in 2014 as the heaven of exchanges. Based on the outskirt of Wilmington, Delaware in United States of America, Poloniex remains the leader in the Exchange industry. Poloniex was lately purchased by Circle a big Goldman-Sachs backed company. Circle’s aim is to make Poloniex the first synchronized Exchange registering as broker/dealer with SEC and FINRA with more plans to establish a bulkhead in the Asian market. Having an outstanding number of trading pairs, the platform does not allow the exchange of cryptocurrency with fiat currencies because it deals only in cryptocurrency.
How to Create Your Account
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Poloniex is very simple in comparison to other exchanges especially in the area of creating an account. Due to its stand on the use of cryptocurrency only, signup procedure is less stressful and invasive. Creating an account on Poloniex allows the user access to every available services, including trading, exchange and lending. However, a user is only allowed to create one account and failure to adhere to this rule can cause you to be suspended or removed from the platform. As a beginner you will notice that there is no way to buy crypto from fiat currency, so it’s advisable to purchase cryptocurrency like Bitcoin from exchanges such as Coinbase and send that to Poloniex for trading. The exchange has a very straightforward interface for all levels.
TRADING ON POLONIEX
Being a beginner, trading on any exchange platform can be daunting but on Poloniex it is very simple. The first step is to ensure you deposit enough funds in your account. The required deposits for some Coins are minimal, which you can verify before trading. After the verification and you are ready to trade, select the right tab on the markets. Choose the tab for the cryptocurrency you want to use and choose the trading pair. Next, you can decide to buy or sell by key in your desired price plus coin quantity. This can be done manually by entering an amount, select lowest ask price, choosing an order from the “order book”. Click “Buy”, and the system will automatically search and pair you with a corresponding order.
Trade History
IS THERE MARGINE TRADING ON POLONIEX?
This feature on the platform is fast and resourceful with peer-peer functionality for borrowing funds to start up a margin trade. Trading funds can be received on the platform and you can work with other traders via the lending platform.
HOW SAFE IS POLONIEX?
To keep hackers out, Poloniex handles security in many ways. It stores most of customers’deposit in air-tight cold storage offline and only keeps sufficient funds online to make active trading simple and seamless, while minimizing exposure and risk without any negative effects for the traders. In 2014 there was a little security breach, subsequently, Poloniex made a refund to the affected users. This incident took place at the start-up of the exchange. So far, there have been no reported re- occurrences, relieving the fears of another breach. Another good thing about Poloniex is that any funds you put on the exchange are yours and there is no concern of it using your money because unlike banks, it will not operate using fractional reserves.
To further improve security, avoid keeping large amount of funds on the exchange for an extended period time, preferably move the funds to a cold hard wallet.
Fees
Like any other exchange, Poloniex must charge some fees in order to run the platform and make a profit. Howbeit, the fees are minimal so you can keep the bulk of your money. It has a maker-taker and volume tiered fee schedule. Based on requirements, greater trading volume attracts lower fees for clients. Taking a closer look at the fees, makers are the ones who create an order within the order book before the trade. Makers make the market liquidity while Takers remove the liquidity. Poloniex chose this model because it encourages market liquidity. The makers’ fees are less than the takers’ giving those who create market liquidity a financial incentive.
CUSTOMER SUPPORT ON POLONEIX
Poloniex has a less-than-stellar reputation with some users complaining of long waits before issues are resolved. It’s not that Poloniex does not want to provide customer service but the demand for it is too high. Trading guides, adding coins API and frequently asked questions (FAQs), two factor authentication, deposits, withdrawals, trading and getting support can be found on the website. You will also find documentation on the Support Centre. As a result of these resources, you should not need customer support for the non technical issues.
Conclusion
It’s interesting to say that despite the glitches in its customer support response, Poloniex offers traders an outstanding option. Anyone looking to use it should know that they can only deposit and withdraw using cryptocurrencies.
