Poloniex, a US-based peer-to-peer cryptocurrency exchange, has been making strides in the crypto market, despite not being as popular as some other exchanges. This review aims to provide a comprehensive understanding of the platform, its history, and its offerings, to help you decide if it’s the right exchange for your needs.
Poloniex: An Overview
Poloniex is a cryptocurrency exchange that provides a platform for buying and trading Bitcoin and other cryptocurrencies. Initially, it was a crypto-to-crypto exchange, but it has since evolved into a full-fledged cryptocurrency trading platform. It now supports FIAT purchases, spot trading, margin trading, staking, crypto lending, and futures contracts.
While Poloniex may not be the most popular cryptocurrency exchange globally, it has been recognized for its high-quality services and smooth user experience. The exchange has been gradually gaining recognition and attracting more users and as of 9th-Jan-24, it is ranked as the 7th largest cryptocurrency exchange in the world in terms of 24H trading volume.
Poloniex Review: Quick Summary
| Headquarters Location | Boston, Massachusetts, USA |
| Fiat Currencies Supported (through third party apps) | 80+ Including USD, EUR, GBP, INR, AED, CAD, AUD, NZD, SAR |
| Supported Cryptocurrencies | 450+ |
| Trading Fees Maker/Taker | 0.1450% / 0.1550% |
| Available Deposit Methods | MERCURYO, SIMPLEX, Bank Transfer, Credit & Debit Card |
| Support | Twitter, Telegram, Weibo, VK, Help Center Articles, Support Ticket |
| Mobile Application | Available (Android & iOS) |
History and Background
Poloniex was established in Wilmington, Delaware, in 2014 by Tristan D’Agosta. It is one of the largest USA-based cryptocurrency exchanges, with a daily trading volume of over $500,000 million, making it one of the exchanges with high liquidity.
However, Poloniex’s journey has not been without challenges. In 2014, the exchange suffered a major cyber-attack, losing 12.3% of all its Bitcoin. To mitigate the loss, the balance of all users on the exchange was reduced by 12.3%. Despite this setback, Poloniex promised to reward its users with bonuses to help them recover their losses and took steps to enhance its security measures.
In 2018, Poloniex was acquired by Circle, a peer-to-peer financial company backed by Goldman Sachs. This acquisition led to significant improvements in the exchange’s user interface and security. In November 2019 it was reported that Justin Sun, founder of crypto platform Tron, said he is part of the investor group that recently acquired Poloniex from fintech firm Circle. Now the exchange is operated by Polo Digital Assets, Ltd., which has ties to an international group of investors.
Services and Offerings
Poloniex offers a wide range of services, including FIAT purchases, spot trading, margin trading, staking, crypto lending, and futures contracts. It also provides a platform for trading non-fungible tokens (NFTs) and crypto futures.
Despite its less popular status, Poloniex has an extensive selection of over 400+ cryptocurrencies, including all the major cryptocurrencies and a variety of altcoins. However, only a small fraction of these cryptocurrencies can be purchased using cash. Most of Poloniex’s offerings are trading pairs, meaning you trade one cryptocurrency for another.
Poloniex Supported Cryptocurrencies
As of now, Poloniex lists over 450+ cryptocurrencies, providing a wide range of options for traders. This extensive selection includes various trading pairs and is complemented by the platform’s support for 36 fiat currencies. Below are some of the popular cryptos listed on Poloniex:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether USDt (USDT)
- BNB (BNB)
- Solana (SOL)
- XRP (XRP)
- USDC (USDC)
- Cardano (ADA)
- Avalanche (AVAX)
- Dogecoin (DOGE)
- TRON (TRX)
- Polkadot (DOT)
- Toncoin (TON)
- Chainlink (LINK)
- Polygon (MATIC)
- Dai (DAI)
- Shiba Inu (SHIB)
- Internet Computer (ICP)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- UNUS SED LEO (LEO)
- Cosmos (ATOM)
- Uniswap (UNI)
- Stellar (XLM)
- OKB (OKB)
- NEAR Protocol (NEAR)
- Injective (INJ)
- Optimism (OP)
- Ethereum Classic (ETC)
- Monero (XMR)
Licensed and Regulated
Poloniex, a cryptocurrency exchange, operates under the regulatory oversight of several financial regulatory services. These include:
- The Financial Services Authority (FSA) of Seychelles
- The Financial Regulation Authority (FINRA) of the USA
- The Financial Crimes Enforcement Network (FinCEN) of the USA
Security and Trustworthiness
Poloniex has faced some controversies in the past, including a major cyber-attack in 2014 a glitch in 2018 that showed incorrect account balances to some of its customers, and most recently the $100M exploit. However, the exchange has taken steps to address these issues such as the launch of an Insurance Fund and improve its security measures. It has a good reputation in the market for its security.
Security Measures
Poloniex employs a variety of security measures to protect its platform and users. These include:
- Protection against Denial of Service (DoS) attacks: This helps to keep the platform running smoothly even when there are attempts to overload the system.
- Cryptographic DNS cache protection (Signature-based): This helps to prevent DNS spoofing, a type of attack where an attacker redirects traffic from legitimate servers to fake ones.
- Cold wallets vault: This is a type of offline storage for cryptocurrencies, which provides an extra layer of security against online threats.
- Protection against strong attacks including robot infiltration: This helps to prevent automated attacks on the platform.
- Registry locks: This prevents unauthorized changes to the domain.
- Two-Factor Authentication (2FA): This requires users to provide two forms of identification when logging in, adding an extra layer of security.
- IP lockouts: This prevents access from suspicious IP addresses.
- Role accounts for privacy protection: This limits the amount of personal information that is exposed in the event of a data breach.
Poloniex Features and Services
Poloniex, a cryptocurrency exchange, offers a variety of features that cater to both novice and experienced traders. Here are some of the main features:
- Open-Source Trading Interface: Poloniex’s trading interface is open-source, which means it can be used as an Application Programming Interface (API). This feature is particularly appealing to developers and experienced traders, as it allows them to integrate the trading interface with external applications. This integration can provide users with in-depth data, which can assist them in making more informed trading decisions.
- Margin Trading and Lending: Poloniex offers margin trading, which allows users to trade with borrowed funds, thereby potentially increasing their profits. However, it’s important to note that margin trading also comes with increased risks.
- Advanced Trading Tools: Poloniex provides a range of advanced trading tools that can help users to trade more effectively. These tools include trading bots, which can automate certain trading activities, thereby potentially increasing efficiency and profitability.
Poloniex and OTC Trading Desk
Poloniex caters not only to individual traders and retail investors but also to institutional firms involved in cryptocurrency trading. With the financial backing of Goldman Sachs, Poloniex is expected to offer robust over-the-counter (OTC) trading services. The Circle-backed OTC desk at Poloniex allows firms to execute large trades with a minimum order size of $250,000, catering to the needs of high-volume traders.
How much is the ‘Maximum Leverage’ for Futures Trading on Poloniex?
The leverage ranges from 0.01x to 100x. Both Level 1 and Level 2 users can use leverage up to 100x.
Poloniex Rewards Center
The Reward Center offers a range of benefits to newly registered users, including Spot, Margin, Futures market, and Polo Earn products. Additionally, users who register through an invitation code can enjoy a 10% rebate on handling fees. Poloniex’s Rewards Center also provides an option to win a ‘Future Trial Fund’. Furthermore, the exchange offers a referral program where users can earn up to 60% of the trading fees of their referred friends as a commission.
Poloniex Earn (Polo Earn), Staking
Poloniex Earn, also known as ‘Polo Earn’, is a suite of cryptocurrency investment products introduced by Poloniex. This feature allows users to earn passive returns on their crypto holdings, providing an opportunity to grow their investments.
Polo Earn supports a variety of cryptocurrencies, including USDT, ETH, and BTC, and offers varying durations and estimated annual percentage yields (APYs). The interest earned is paid out daily at 9:00 a.m. (UTC) and is transferred directly to users’ spot accounts.
Users have the flexibility to manually subscribe to Polo Earn products or enable auto-subscription. The latter automatically invests the available balance in their spot account into the chosen product twice a day at 02:00 and 14:00 (UTC).
Poloniex Fee Structure
Poloniex’s fee structure is designed to accommodate a wide range of trading activities. It uses a tier-based system, where transaction costs can vary based on factors like trading volume. The platform aims to keep fees competitive, striving to be among the lowest in the industry. This approach reflects Poloniex’s commitment to accessibility and fairness, aiming to provide an equitable trading environment for all users. The goal is to keep fees manageable, allowing users to fully engage with a variety of trading options.
| Type | Fee |
|---|---|
| Deposit Fee (Bank Transfer) | 3.95% |
| Deposit Fee (Credit/Debit Card) | 3.5-5% |
| Trading Fee | 0.09% – 0.12% |
| Withdrawal Fee (Bank Transfer) | 1% |
Poloniex has a maker/taker fee schedule which you can see below.
| Level | 30-Day Spot Trading Volume | 30-Day Futures Trading Volume | Total Balance | TRX Balance | Maker / Taker | Maker / Taker (Pay with TRX) |
|---|---|---|---|---|---|---|
| VIP 0 | $0 | $0 | $0 | $0 | 0.2000%/0.2000% | 0.1400%/0.1400% |
| VIP 1 | $10,000 | $100,000 | $2,000 | $100 | 0.1150%/0.1250% | 0.1400%/0.1400% |
| VIP 2 | $80,000 | $2,000,000 | $4,000 | $10,000 | 0.1050%/0.1200% | 0.0735%/0.0840% |
| VIP 3 | $500,000 | $5,000,000 | $10,000 | $50,000 | 0.1000%/0.1200% | 0.0700%/0.0840% |
| VIP 4 | $1,000,000 | $10,000,000 | $200,000 | $100,000 | 0.0900%/0.1200% | 0.0630%/0.0840% |
| VIP 5 | $2,000,000 | $20,000,000 | $400,000 | $500,000 | 0.0700%/0.1150% | 0.0490%/0.0805% |
| VIP 6 | $5,000,000 | $50,000,000 | $1,000,000 | $1,000,000 | 0.0600%/0.1150% | 0.0420%/0.0805% |
| VIP 7 | $10,000,000 | $10,000,000 | $8,000,000 | $100,000,000 | 0.0500%/0.1100% | 0.0350%/0.0770% |
| VIP 8 | $20,000,000 | $500,000,000 | $16,000,000 | $200,000,000 | 0.0000%/0.1000% | 0.0000%/0.0700% |
| VIP 9 | $50,000,000 | $1,000,000,000 | $30,000,000 | $400,000,000 | -0.0050%/0.1000% | -0.0050%/0.0700% |
Pay Less in Trading Fees with TRX
Poloniex knows the importance of low fees for its customers. In response to this, they’ve introduced a new feature that allows users to earn a 30% discount on their trading fees when they pay with TRX.
In addition to this, Poloniex is launching a new fee tier for TRX holders in Fee Tier 1. If you trade less than $50,000 and hold at least $49 worth of TRX in your Poloniex account, you’ll qualify for a fee discount and move into Fee Tier 2.
Plus, you can opt-in for TRX trading fee discounts to get an extra 30% off! To take advantage of these discounts, simply opt-in to pay your trading fees with TRX in your Poloniex account. This is a great way to maximize your trading potential on Poloniex.
| Fee Tier | 30 Day Trade Volume (USD) | TRX Balance (USD) | Maker / Taker Fee | Maker / Taker Fee with TRX |
|---|---|---|---|---|
| 1 | < $50K | <$49 | 0.1450% / 0.1550% | 0.1015% / 0.1085% |
| 2 | < $50K | ≥$49 | 0.1150% / 0.1250% | 0.0805% / 0.0875% |
| 3 | $50K – $1M | ≥$0 | 0.1050% / 0.1200% | 0.0735% / 0.0840% |
| 4 | $1M – $10M | ≥$0 | 0.0700% / 0.1150% | 0.0490% / 0.0805% |
| 5 | $10M – $50M | ≥$0 | 0.0500% / 0.1100% | 0.0350% / 0.0770% |
| 6 | $50M + | ≥$0 | 0.0200% / 0.1000% | 0.0140% / 0.0700% |
| Poloniex Plus Silver | Users have to sign up for VIP program. | 0.0000% / 0.0600% | 0.0000% / 0.0420% | |
| Poloniex Plus Gold | Users have to sign up for VIP program. | 0.0000% / 0.0400% | 0.0000% / 0.0280% |
Futures Trading Fees
Futures trading fees are standard for all traders, regardless of your 30 day trading volume.
MAKER / TAKER FEE: 0.01% / 0.075%
Poloniex Customer Support
Poloniex’s customer support is a testament to their commitment to excellent service. They offer a range of support channels, including email tickets and a comprehensive FAQ section, ensuring users receive prompt and helpful assistance.
This is particularly important in the fast-paced world of crypto trading, where timely support can greatly impact a user’s trading experience. Poloniex’s dedicated team and robust infrastructure ensure that users’ queries are addressed accurately and swiftly, reinforcing the trust users place in the exchange.
Available Support Channels
- Support Ticket
- Live Chat
- Telegram
- Help Center Articles
Poloniex Sign-Up Guide: A Simple Walkthrough
And that’s it! You’re now a member of the Poloniex trading community.
Deposit Methods
- Bank Transfer
- Visa/Mastercard (Credit/Debit Card)
- Cryptocurrency
- Simplex
- Mercuryo
How to Fund your Poloniex Account?
Poloniex provides 2 different mechanisms for funding your Exchange Account.
- Deposit crypto on-chain
- Buy crypto with fiat using Simplex
Are there limits?
Yes. The minimum purchase amount is $50 (or equivalent). The maximum daily purchase amount is $20,000 (or equivalent). The maximum monthly purchase amount is $50,000 (or equivalent).
Which countries are not supported for card purchases?
Although Poloniex offers its customers the convenience of purchasing cryptocurrencies using credit and debit cards via Simplex. However, this service is not available in these 27 countries:
Afghanistan, American Samoa, Antarctica, Botswana, Bouvet Island, Christmas Island, Crimea, Cuba, Democratic Republic of the Congo, DPR Korea (North Korea), French, Southern and Antarctic Lands, Gaza Strip, Heard and McDonald Islands, Iran, Iraq, Jan Mayen, Lebanon, North Mariana Islands, Pakistan, Palestine, Paracel Islands, United States of America (USA), United States Virgin Islands, West Bank (Palestinian Territory), Western Sahara, South Georgia and the South Sandwich Islands, Spratly Islands, Syria, Sudan.
Conclusion
Poloniex may not be the most popular cryptocurrency exchange, but it offers high-quality services and a wide range of cryptocurrencies. It has faced some challenges in the past but has taken steps to improve its security and user experience.
If you’re looking for a cryptocurrency exchange with a wide range of offerings and a focus on security, Poloniex could be a good choice for you.
Poloniex FAQs
Can I withdraw my coins and cash out to my card through Simplex?
Is Poloniex safe and legit?
Moreover, it’s essential for users to remain vigilant and informed about the exchange’s operational status and any updates in regulatory compliance.
What country is Poloniex?
Who owns Poloniex exchange?
What is Poloniex ‘Fair Fund’?
As a result, Poloniex was ordered to pay penalties, disgorgement, and interest, which together make up the Fair Fund. The money in this fund is intended to be distributed to eligible claimants who paid fees to trade certain cryptocurrencies on Poloniex between August 1, 2017, and November 30, 2019.
