Tristan D’Agosta founded Poloniex in January 2014 and led the exchange through its formative years, which were also the most trying. On February 26, 2018, D’Agosta sold Poloniex to Circle for a fee of $400 million.
Just over a year later, Circle sold off Poloniex to Polo Digital Assets, Ltd, registered in Seychelles. Owners of this new holding company include popular figures like Justin Sun, the CEO and founder of TRON.
Poloniex exalts itself to be a legendary exchange for crypto assets. It offers a range of crypto-related services including crypto trading, staking, and leveraged lending of digital coins.
Poloniex Review – Overview
Poloniex is a leading cryptocurrency exchange with users from 68 different countries able to purchase coins using the Simplex platform. The exchange’s KYC guidelines allow new users to join the trading platform easily. Users can open either an individual account or an institutional account, each of which could be a Level 1 or Level 2 depending on KYC verification. Poloniex’s most unique feature is Poloni DEX that offers users a trading experience in a decentralised environment.
Table of Contents
What is Poloniex?
Poloniex is a centralised cryptocurrency exchange offering a range of services including cryptocurrency spot trading, crypto futures trading, and crypto lending. The exchange had one of the strictest KYC guidelines in the industry when it had its operations headquartered in the US, and users were allowed to transact on the platform only after satisfying stringent verification measures.
Under Polo Digital Assets, Poloniex has relaxed the KYC rules and as a result, the exchange has been able to expand its range of services, as well as the number of cryptocurrencies it supports. Poloniex set up new headquarters in Seychelles, which has a positive attitude towards cryptoverse.
TRON’s Justin Sun is among the most notable figures behind the new Poloniex management. For this reason, peers who use TRON’s native coin, TRX, to pay fees on Poloniex can earn a 25% discount.
Polo Digital Assets, Poloniex’s parent company, has full control over the running of the exchange, and although this centralised governance defeats the primary aim of blockchain technology, it does help to increase the security of the platform.
Poloniex has now introduced a decentralised exchange feature called Poloni DEX. The DEX feature includes all functionalities and capabilities of decentralised exchanges (DEXs) including self-verification of transactions and low trading fees.
How Does Poloniex Work?
Poloniex has two account types to cater for both, individuals, and larger institutions. The individual account is open to retail traders who do not intend to make large transactions. Even the signup process is simple and expedited.
To open an individual account all you need is an email address, and you must confirm that you are at least 18 years old. Individual accounts offer a narrower range of services, along with limited deposit and withdrawal amounts. One benefit of the individual account is a non-restrictive level of verification, meaning anyone can sign up and start to use the trading platform with little hassle.
Institutional accounts on Poloniex face a more thorough verification process. Tougher KYC (Know Your Customer) requirements are implemented when new institutional users apply for an account. The signup process is not complete without proof of incorporation (if the account will be under a company’s name), proof of address, government IDs for trading representatives, and any other documents deemed necessary at the time of registration.
With an individual account, you can start trading cryptocurrencies as long as you have some coins in your wallet. If you need to buy coins first, then you will have to provide some additional personal details for KYC and AML purposes.
Key Services & Additional Features
Although Poloniex is a centralised cryptocurrency exchange, it offers access to a DEX trading platform via Poloni DEX. Poloniex and Poloni DEX are two distinctly different cryptocurrency exchanges but they work in tandem to provide a seamless cryptocurrency trading experience. Unlike the Poloniex exchange, Poloni DEX does not charge any trading fees.
Another notable feature of the exchange is that it provides users access to at least a hundred spot trading pairs, some of which include BTC/USDT, USDJ/USDT, BTC/USDC.
Poloniex also offers margin trading. It is worth noting, however, this service is only available to traders whose country of residence does not restrict margin trading and also requires a fully verified account.
Cryptocurrency futures trading is also available. Some of the products offered under this feature include BTC perpetual, ETH perpetual, BSV perpetual, and BCH Perpetual. All of these products are USDT collateralised.
Furthermore, Poloniex offers cryptocurrency lending services. Users with Bitcoin (BTC) in their accounts can offer loans at discretionary rates for a duration of two days. The minimum loan amount permitted is 0.005 BTC. Because the lending feature is leveraged there is an opportunity for great returns, but the associated risk is quite high as well.
Lastly, Poloniex works in partnership with Simplex – a payments processing company – to enable the purchase of cryptocurrencies using fiat currencies. Interested buyers can use their credit and debit cards to purchase AVA, ATOM, BNB, BTC, BCH, BUSD, XLM, DASH, BSV, ETH, LTC, XRP, USDT, TRX, and PAX.
What Cryptocurrencies are listed on Poloniex?
Poloniex was the first cryptocurrency exchange to list Ethereum back in 2016, and it has continued to expand on its listed assets over the years. The exchange lists 166 digital currencies. These include:
Bitcoin Cash (BCHABC)
Basic Attention Token (BAT)
Binance Coin (BNB)
Compound Governance Token (COMP)
Ethereum Classic (ETC)
… and 152 others.
The complete list of all listed assets can be accessed here.
Supported Countries, Currencies and Payment Methods
The Poloniex exchange allows eligibility for users from several locations, and the Simplex partnership allows operations in 68 countries around the world. However, residents of the following countries are prohibited from access to the Poloniex platform due to their government laws and regulations:
And the United States.
Additionally, residents of 27 countries are prohibited from accessing the futures feature on Poloniex. These include:
Antigua and Barbuda,
…and 19 others.
The full list is accessible here.
Transactions on the Poloniex platform are strictly crypto-based. Users are encouraged to pay for transaction fees using TRX. However, users can buy BTC and a few other altcoins using debit and credit cards (Simplex only accepts VISA and MasterCard). Simplex is the primary payments provider that supports Poloniex.
The fiat currencies accepted for purchasing crypto include:
The full list is available here.
How to buy Cryptocurrency on Poloniex
Before you can trade on Poloniex, you need cryptocurrency in your wallet. If your wallet is empty, you can buy some coins using supported bank cards. Poloniex integrates Simplex to facilitate this process which goes as follows:
1On your Poloniex account, go to the ‘Explore’ feature on the menu bar.
2In the drop-down, click on ‘FIAT’.
3In the page that opens, specify the asset you would like to buy as well as the Fiat currency you would like to use.
4Then select the amount of the asset you would like to buy. This figure must have a value between a minimum of $50 and a maximum of $20,000.
5Confirm you have read the disclaimer and you consent to the transaction by checking the provided box.
6Click ‘Buy Now’ and complete the transaction.
Poloniex Fees and Limits
Poloniex boasts fees on the lower side in cryptoverse. The fees vary depending on the transaction. Also, makers and takers incur different fees and commissions. The exchange defines a maker as the party whose order appears on the orderbook before execution of the trade. A taker, on the other hand, is the party whose order ‘takes’ (or matches) the order.
Poloniex maintains a fee schedule based on the trading volume per transaction. The taker fee for a 30-day trading volume less than $50k and a TRX balance less than $49 is 0.094%, which is similar to the maker fee for the same.
For users with a TRX balance more than $0 in their wallet and with a 30-day trading volume of between $50k and $1 million, the taker fee is 0.09% while the maker fee is 0.085%.
For Poloniex Plus Silver account holders, the taker and maker fee is 0.06% and 0.00% respectively. If one has TRX in their accounts, these fees decline to 0.045% and 0.00%. Poloniex Plus Gold fees for maker and taker are 0.00% and 0.04% respectively without TRX, and 0.00% and 0.03% with TRX.
Additionally, Poloniex charges margin interest fees on loans. Each loan offer has a specified interest rate, meaning every loan amount attracts a different margin interest fee. Besides these, Poloniex takes 15% interest that a lending customer earns in the form of a lending fee.
Depositing of crypto into your Poloniex account is free. However, withdrawal attracts a fee whose value depends on the asset in question.
Poloniex has withdrawal limits based on the level of verification for your account. A basic account (also called a Level 1 account) cannot withdraw more than $10,000 per day. However, this limit will automatically increase to $20,000 per day after you enable two-factor authentication (2FA).
Level 2 accounts have the daily withdrawal limit set at $250k, with a 2FA-enabled Level 2 account having a massive $750k daily limit. If Poloniex whitelists your withdrawal addresses, and you have a Level 2 with 2FA enabled, you can withdraw up to $1 million per day.
Is Poloniex Safe?
Poloniex is a veteran of cryptocurrency exchanges, having been around since January 2014. Two months after the launch, hackers managed to gain access to the Poloniex network and made away with close to $50k worth of Bitcoin. Because of this attack, Poloniex learnt early enough the importance of an airtight trading platform in terms of security.
One of the earliest security measures that Poloniex introduced was stricter KYC and AML guidelines. New users had to provide verifiable personal details before having their account set up. Although the KYC measures were relaxed, Poloniex implemented another popular security measure known as two-factor authentication (2FA).
Besides the 2FA, Poloniex categorises accounts into Level 1 and Level 2. Level 1 accounts require less personal information including a verifiable phone number, a verifiable residential address, and government IDs. Level 2 accounts require detailed information including bank details and an official photo id of the account owner.
Furthermore, Poloniex has notable security measures in place that include comprehensive protection against DDoS hacks, DNS cache protection based on cryptographic signatures, IP lockouts and email confirmations, session log history, and registry lock, among many others. To cap it all, Poloniex users are encouraged to store their coins in cold storage wallets.
Is Poloniex Legit & Regulated?
Poloniex began its operations as a US-based entity and it fell under federal and state-level financial regulators. After the Seychelles-based Polo Digital Assets bought Poloniex, the Financial Services Authority of Seychelles (FSA) took over the regulatory responsibilities.
The Seychelles FSA is a notable regulator that oversees the activities of non-bank financial entities such as Polo Digital Assets. FSA works in close concert with international partners to ensure all entities in its jurisdiction adhere to best practices related to anti-money laundering (AML) regulations and KYC. To this end, FSA is part of the International Association of Insurance Supervisors (IAIS), International Organisation of Securities Commission’s (IOSCO), and OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes, among others.
From the foregoing, Polo Digital Assets operates under a competent regulator. In short, Poloniex is a trustworthy trading platform that is safe for everyone, of course except traders from prohibited countries.
Poloniex Vs. Other Exchanges
Poloniex might be a veteran of the cryptocurrency exchanges sector but it is not alone. Ever since cryptoverse began to expand and attract more people, exchanges started to cater to the huge demand for cryptocurrency trading services. Poloniex is certainly one of the most established and trusted exchanges, but there are other recommended trading platforms, each offering unique services.
There is no doubt about the capability of Poloniex to satisfy the needs of all manner of crypto traders. The intuitive user interface makes for a memorable trading experience.
If there was one aspect that Poloniex achieves above others, it is usability. The Poloniex exchange has a range of screens, boxes, and windows aimed at making your work easier when navigating the platform; they ensure that your work is simplified to maximise your productivity.
Poloniex has a wide range of features including social forums for the best customer support experience. Nevertheless, the exchange does not reduce the risk inherent in crypto trading. In fact, the Poloniex website displays risk warnings and advice to ensure that the trader is fully aware and prepared for using the platform.
Frequently Asked Questions
Yes. Poloniex is a regulated crypto exchange whose physical address is in Seychelles. Seychelles’ FSA regulates Poloniex’s operations to ensure the safety of its clients. In addition, Poloniex implements strict verification measures to ensure that all users on the platform are legitimate and well-meaning participants.
Account registration on Poloniex is simple and fast. This, however, depends on whether you want an individual account or an institutional account. An individual account takes minutes to set up while an institutional account might need 24 hours to be ready. Individual accounts require just an email address that is verifiable.
Deposits on Poloniex are free. For withdrawals, there is a fee structure that guides the charges on transactions. Regular accounts attract a fee of just 0.094% and Gold accounts do not incur any fee during withdrawal.
Yes. Level 1 accounts can withdraw $10k per day while Level 2 accounts have a withdrawal limit of $250k. However, you can push this limit up by setting two-factor authentication for your account. A Level 2 account that is 2FA-enabled can withdraw $1 million per day.
Yes. Poloniex has security measures in place that rank high within cryptoverse. The exchange employs DNS cache protection mechanisms based on cryptographic signatures and strong security services to prevent DDoS attacks. In addition, most Poloniex users store their coins in cold storage wallets to avoid exposure to hackers.