Poloniex, a cryptoexchange company based in the United States, is consistently ranked as one of the crypto exchanges with the highest trading volumes and is a solid competitor of Kraken and Coinbase. Yet, what differs this company from those exchanges is an ability to trade only with altcoins, i.e. depositing and withdrawing only cryptocurrencies. Actually, Poloniex is able to boast the number of altcoin pairs as high as more than 90. Our Poloniex review will help you find out more about this exchange, get to know whether it is safe, and learn about its advantages and drawbacks.
General Information About Poloniex
Company’s Foundation Year: 2014.
Headquarters: Wilmington, DE, United States.
Deposit Methods: Cryptocurrencies (known as altcoins).
Withdrawal Methods: Altcoins.
Fiat Currencies Supported: -.
Mobile App: No.
Friendly Towards Beginners: No.
Fees: Very low.
Customer Support: Bad.
Community Trust: Bad.
Poloniex Review: General Overview of the Cryptocurrency Exchange
Even though Poloniex was launched in 2014, it became registered as an MSB (a money service business) with the FinCEN (the Financial Crimes Enforcement Network) only in 2016. The first thing that makes the trust from the community towards the company low is the opaque ownership over the company (there is no information about the owners that could be found). Besides, the company’s registered address in Wilmington is believed to belong to an agent, while the genuine location of the company’s headquarters remains unknown.
Considering that Poloniex is a huge cryptocurrency exchange, after all, it shouldn’t be surprising that many users can’t miss it and tend to try it out. Yet, many of the reviews showed that the customer support at Polonies is really bad. And while that is the issue inherent to the cryptocurrency industry overall at the present time, the problems with the customer support at Poloniex are far deeper and worse than that. For example, some users complained on Reddit that they received no answer within 3 weeks. Other experience problems with returning their stolen bitcoins, while receiving no messages from the exchange’s support for months.
In the meantime, the absence of the information about the owners of Poloniex raises questions about the company’s legitimacy. But even with such opaque background, the company kept constantly growing in terms of trading volumes, the number of their clients, and the number of supported cryptocurrencies.
While this cryptocurrency exchange is frequently associated with the numerous problems the users experience, it tends to be the largest crypto exchange in terms of the traffic amounts. On the monthly basis, the website of Poloniex receives more than 50 million visits. Coinbase was closest to reach that kind of the traffic amounts, when once its monthly traffic exceeded 45 million visits. The largest sources of traffic to Poloniex include the United States (24.84%), Russia (6.06%), the United Kingdom (4.65%), Vietnam (3.67%), and Brazil (3.14%).
Poloniex has grown into such a huge crypto exchange after it acquired operations and user base from Cryptsy, its largest rival that went bankrupt so far. Its interface is somewhat similar to Kraken’s, but a little bit more intuitive. While it will be not the best choice for beginners, a bit more advanced users can use Poloniex with ease. Despite the fact that the company also lacks a mobile app, the exchange’s website works and is displayed perfectly on mobile devices as well. The company has also made API keys available, which allows developers and programmers to create tools for data and market analytics.
The fact that Poloniex is an altcoin trading platform also ensures three good things. First of all, it won’t be so difficult for you to sign up for Poloniex and verify your account – the number of verification requirements is far lower than on other exchanges. Secondly, the fees tend to be extremely low (look below). Thirdly, this allows the users from almost any country in the world to sign up and trade here.
Poloniex Review: Fees
Considering that Poloniex accepts depositing and withdrawing funds only in cryptocurrencies (nor it supports fiat currency trading pairs), it shouldn’t be surprising that the fees tend to be fairly low. Traditionally, Poloniex fees have been no higher than 0.25%. You can observe what are the fees at Poloniex here.
When carrying out a transaction, both “makes” and “taker” are charged. Obviously, sellers are charged less than buyers. The fees also depend on monthly trading volumes of users. The fees can be from 0.15% up to 0% for sellers and from 0.25% to 0.05% for buyers.
How to Verify Account on Poloniex
First of all, it must be said that there are 3 types of accounts on Poloniex, each of which has specific deposit/withdrawal limit. But the verification process is, nevertheless, far easier to accomplish than on other major cryptocurrency exchanges. This section of our Poloniex review will help you find out what types of Poloniex accounts exist and how to verify your account.
The interface at Poloniex
Account with the first level of verification. Once you have signed up for Poloniex, provided your name and country of residence, confirmed your email address, you get an account with the first level of verification. It allows you to deposit and withdraw cryptocurrencies worth $2,000 per day.
Account with the second level of verification. In order to upgrade your account to the second level of verification, you need to provide the following information and documents: passport ID, date of birth, phone number, postal address, and physical address. Also, you will be asked to provide the photos from your ID and passport. Once your application will be approved, you will get the limits raised up to $25,000 worth of cryptocurrencies for depositing and withdrawing per day.
Account with the third level of verification. If those limits are not enough for you, you are able to contact the exchange’s support and ask for the third level of verification. The exact limits for accounts with the third level of verification are not known, but it’s known for sure that they are higher than those at Kraken, Coinbase, and Bitstamp.
Security on Poloniex
When it comes to the issue of security on Poloniex (and this section of our Poloniex review is going to disclose it), there is one peculiar thing everyone must be aware of: Poloniex controls all the private keys that enable sending bitcoins or other cryptocurrencies. At the same time, the company makes sure that its clients store large bulks of the cryptos in cold storage wallets. Besides, Poloniex provides its clients with an ability to enable 2-step verification.
And while the security measures undertaken by the company may seem pretty solid, you should always trust the company about your funds. And even though the company may seem reliable, there may not always be an honest person in charge of the funds safety. Though, it must be pointed out that when over 12% of all bitcoins from the Poloniex customers were stolen, the company compensated all the funds to their owners.
But in any case, you should store as much funds on Poloniex as you need and move them to the safer wallets (the ones you are in control of) once you don’t need them for trading or sending.
Advantages and Disadvantages of Poloniex
Eventually, this section of our Poloniex review summarizes the entire article and will help the users define whether Poloniex is an acceptable platform for them. So, when it comes to the advantages of Poloniex, they are the following:
- Allows trading more than 90 cryptocurrencies.
- Very low fees for depositing and withdrawing cryptos.
- Residents of any country are able to trade on Poloniex (unlike Kraken and Coinbase).
- Poloniex provides the clients with tools for data analysis and detailed charts.
- A good place for traders who seek to invest or speculate with new cryptocurrencies.
- The largest Ethereum exchange.
- Refunded the clients who were affected by the security breach.
Also, our Poloniex review contains the disadvantages of this exchange:
- The interface is not that good for beginners.
- The lack of information about the company’s physical offices.
- The customer support system is simply terrible.
- Inability to deposit and withdraw fiat currencies.
- Centralized management of private keys, which leaves the users in a less secure position.