Poloniex is perfect for people looking for flexibility. It offers superb liquidity for a long list of altcoins, which can be traded with Bitcoin. Poloniex, according to its website, is a digital asset exchange based out of the US, which offers advanced trading features and maximum security.
This quick guide will touch upon the pros and cons of Poloniex while detailing its background, trading fee, funding options, and other features.
Why Should Beginners Choose Poloniex?
Margin trading supported
A wide selection of altcoins to trade with
What’s not to like?
Does not support fiat currencies
Poor Customer support
Brief Background of Poloniex
Poloniex was established in 2014 by Tristan D’Agosta as a versatile cryptocurrency exchange. The exchange has its headquarters based in San Francisco. The majority of traders on the exchange are U.S. based. Nevertheless, the platform is making efforts to attract traders from all over the world. This is expected to happen soon since Poloniex is one of the most diverse cryptocurrency exchange platforms to exist on a global level.
What is the Trading Fees on Poloniex?
Poloniex uses the standard maker-taker model to encourage market liquidity. The makers get a lower trading fee for creating liquidity. This allows for a better market spread and motivates makers to outbid each other.
Because Poloniex supports more than 80 cryptocurrencies and it can be challenging to create liquidity for them, the maker-taker model works wonders for the exchange.
The following fee schedule is used to charge users:
below 600 BTC – 0.15% for the maker, 0.25% for the taker
from 600 to 1,200 BTC – 0.14% for the maker, 0.24% for the taker
from 1,200 to 2,400 BTC – 0.12% for the maker, 0.22% for the taker
from 2,400 to 6,000 BTC – 0.10% for the maker, 0.20% for the taker
from 6,000 to 12,000 BTC – 0.08% for the maker, 0.16% for the taker
from 12,000 to 18,000 BTC – 0.05% for the maker, 0.14% for the taker
from 18,000 to 24,000 BTC – 0.02% for the maker, 0.12% for the taker
from 24,000 to 60,000 BTC – 0.00% for the maker, 0.10% for the taker
from 60,000 to 120,000 BTC – 0.00% for the maker, 0.08% for the taker
over 120,000 BTC – 0.00% for the maker, 0.05% for the taker
There is a 15% flat fee on earned interest for lenders using the platform to utilize their dormant capital.
All fees calculation on the platform is based on the previous 30 days of trading volume. The fee automatically adjusts to volume. All deposits and withdrawals made on the Poloniex exchange are free of charge.
How to Deposit and Withdraw Funds?
A major drawback of Poloniex is that it doesn’t support any fiat currencies. The only way to make deposits is through cryptocurrencies, which can be quite challenging for beginners. However, the exchange supports over 80 different types of altcoins with over 250 trading pairs. And, you can use any of them to make a deposit, unlike some other exchanges that only consider bitcoins as wallet deposit.
The more frequently deposited crypto on Poloniex for first-time users include:
Is Poloniex Versatile in Terms of Trading?
Poloniex is highly versatile in terms of trading offering Buy order, Sell Order, and Stop limit order. These orders can be executed while trading Ethereum, Bitcoin, Tether, and Monero. It is interesting to note that 99% of Tether was traded singularly on Poloniex in 2017. This was due to the high liquidity offered by the exchange.
Poloniex also offers margin trading with its leveraging reaching up to 2.5x for some pairs.
Another trading feature offered by the exchange is the lending option. This feature is unique to Poloniex. You can demand or offer a loan on the exchange with this feature for a pre-specified interest rate. This may be useful if you just want to get a feel of the platform without actually investing in crypto.
How User-Friendly is Poloniex?
Poloniex has a proprietary web-based trading platform like most other cryptocurrency exchanges. The platform is designed well with a user-friendly trading screen. The interface is easy to use and looks great. You can easily shift between 200 trading pairs without missing a beat. However, there are no mobile applications of the exchange. But, the website is pretty responsive and works great on mobile devices.
Poloniex Customer Service
Customer service is a major weakness of the exchange. The only way to contact the support team is through email ticket systems, which has a long response time. You can always refer to their FAQ section if you have basic questions.
The Bottom Line
Poloniex can be called a true crypto-to-crypto exchange when it comes to usability. This should be your go-to exchange as a beginner if you have a fairly decent understanding of the ropes and want to diversify your crypto portfolio.