Is Poloniex the Best Cryptocurrency Exchange?

Poloniex Cryptocurrency Exchange
Poloniex Cryptocurrency Exchange

Overview

Poloniex is another example of a great service that insists on its own privacy. As far as I’m aware they have yet to be as transparent about ownership as many would like. And, without any known physical office people are having a tough time trusting the company.

It’s been suggested that this is for tax and regulatory reasons. I don’t know that this is the case, but, without anyone to be held accountable, it’s best to proceed with caution. This exchange could effectively disappear without warning.

If you’re good with that then Poloniex is pretty great. It offers margin lending and trading markets so you can increase returns by spreading your crypto out.

Poloniex is also a leading source of Ethereum coin with over 4,000 ETH are traded daily.

But… Is Poloniex the Best Cryptocurrency Exchange? Let’s find out.

Poloniex Cryptocurrency Exchange

8.1

Cost

9.0/10

Functionality

9.1/10

Support

6.9/10

Safety

7.4/10

Pros

  • Largest Ethereum exchange by trade volume
  • Open-source
  • Detailed charts and tools for data analysis
  • Low Fees for crypto deposits and withdrawals
  • High volume margin trading
  • Lending services
  • Supports more than 50 cryptocurrencies.
  • Open to almost everyone
  • Worldwide service
  • Get help via support tickets on their site

Cons

  • Reports of problems withdrawing funds
  • Can’t use FIAT currencies
  • Centralized private key management
  • No physical office
  • Identities of owners, managers and investors is unknown
  • Poor customer support
  • No mobile app

 

 

Review: Is Poloniex the Best Cryptocurrency Exchange?

Poloniex is international crypto to crypto exchange based in the US. They are a popular and secure exchange and is considered by many to be a premier cryptocurrency exchange for traders.

Poloniex Cryptocurrency Exchange

Benefits

Poloniex uses the Taker/Maker system

  • Sellers are the Makers
  • Buyers are the takers
  • Makers are charged less with a discounted fee

Regular exchange

  • Swap coins around based on the current market exchange rate
  • Stop-limit trade function
  • Basic order book with transactions history
  • Basic buy and sell trades
  • A large number of trading pairs including BTC, XMR, USDT, ETH, more…
  • The design is easy to use and great for newbies and traders alike

Margin trading

  • Buy and sell functions combined with the stop-loss and leveraging
  • Borrow and lend cryptocurrency to other users
  • Especially great for experienced market traders
  • Leveraging and loans

Countries Supported

Worldwide except for countries where cryptocurrencies are banned. This is a good reason to say Poloniex the best cryptocurrency exchange. There are a lot of great exchanges out there that a lot of people don’t have access to.

 

 

Buy & Sell

Poloniex’s specialization is crypto to crypto trade. So you’ll need to buy your cryptocurrencies with fiat elsewhere. Then, move the coin to Poloniex.

Poloniex supports transactions for about 50 coins.

BuyingSellingStop Limiting
  1. Select the exchange tab
  2. Choose your cryptocurrency from the displayed chart
  3. Scroll down to the Buy and Sell options
  4. Enter the number of coins you want to buy
  5. Click Buy Button to complete the transaction
  1. Select the exchange tab
  2. Select your preferred coin
  3. Enter the number of coins you want to sell
  4. Click the Sell Button to complete the transaction
  • Set the highest and lowest price for that particular coin.
  • The coin will be purchased automatically if the value moves to be with your high-low range.
  • Selling is the same
  • When the value of the coin drops within your set high-low range it will be sold automatically.

 

Fees & Currencies

The exchange rate is determined by the platform’s coin evaluation and the type of order being made.

  • Taker fees: 0.05% – 0.25%
  • Maker fees: 0% – 0.15%
  • Lending: 15% of the interest rate
Special Note
They support over 50 cryptocurrencies. They do not work with any fiat currencies.

Safety & Security

Poloniex has full control of all private keys to all the wallets. They claim to store deposits in cold storage.

Unfortunately, they do NOT offer a password manager, email encryption or API message tools. They only offer two-factor authentication.

In 2014. Their security was breached and about 12% of BTC user deposits were stolen. Poloniex eventually reimbursed all the funds lost.

They’re concern about their lack of transparency, company physical location and ownership.

It’s recommended that you only store what you are using on Poloniex and only while using it. If you have coin that won’t be used, store it elsewhere.

Verification

Level 1

  • Provide your name, email and country.
  • Daily deposit and withdrawal limit of $2,000 worth of cryptocurrency.
  • Exchanging, trading and lending has no limit.

Level 2

  • Increases daily limits
  • Provide a phone number, postal address, physical address, date of birth and a passport ID.
  • Deposit and withdrawal limit of $25,000 worth of cryptocurrency.

Level 3

  • Increases daily limits
  • Limits over $25,000 crypto
  • Contact the support team

 

 

User Experience

Special Note
Only uses crypto for transactions

Quick Guide

Create Account

  1. Click Balances tab
  2. Click Deposits & Withdrawals
  3. Select the coin you want to deposit
  4. Click Deposit
  5. Copy/paste the address of the cryptocurrency and send
  6. Track on the same page

Customer support

Many users have complained that support takes an excessively long time to respond.

You can contact support via the contact page. They also offer an FAQ that will help with most questions.

Feedback

Some users have reported difficulty withdrawing their funds.

Some have reported prolonged approval wait times.

 

Final Verdict

Is Poloniex the Best Cryptocurrency Exchange?

GOOD

Poloniex exchange has some nice features. It has a huge market for Bitcoin and Ethereum, and they support the latest cryptocurrencies as well as lending services.

Unfortunately, they don’t support FIAT currencies, they have relatively poor security, withdrawal and customer support issues, and a lack of transparency all need to be considered before joining the exchange.

Final Verdict: Despite all the issues, I still have to give them a GOOD rating. I may be biased here, let me know. But, they have a couple of features/benefits which I think are great. I definitely recommend only adding what will be used and moving to another location that’s not in use.

 

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