Poloniex Digital Currency Exchange Review 2018
Poloniex was founded in 2014 as a US based digital asset exchange. Currently headquartered in Wilmington, Delaware the company allows traders to trade multiple cryptocurrency pairs. To keep hackers out, Poloniex has invested in security systems that not only protects customers’ funds but their digital assets too.
At the moment, a vast majority of customer deposits are stored in air gapped cold storage. The facility is always offline and comes online to facilitate active trading. This helps minimize risks. Poloniex has also invested in a state of the art audit program that monitors the cryptocurrency exchange 24/7. Its purpose is simple – to report and block suspicious activity.
How To Register For An Account
At the time of writing, Poloniex was experiencing a high number of registrants. This was attributed to several major exchanges closing their doors on new registrants.
The first step is where you fill in the following details – country, email and password. Once you have done this, your email becomes your Poloniex ID automatically. It is important to protect your email to prevent hackers from accessing your Poloniex account.
Currently, Poloniex rejects sign-ups from throwaway email addresses. To protect your Poloniex account, it is highly recommended that you create an alphanumeric password composed of 8 to 32 characters.
After sign up, an email will be sent to your account. Click on the available link to activate your account. Before your account is fully operational, Poloniex technicians will require additional information.
If all the details are ok, your account will be verified in time for trading.
How To Protect Your Poloniex Account
Apart from setting up a strong alphanumeric password, Poloniex offers Two-factor authentication. This is a two-step verification system where users need to identify themselves using a combination of different components. Once you set up your two-factor authentication, enter your password and the passcode sent to your phone every time you sign in.
The passcodes are uniquely generated for individual accounts. As a result, your account will be protected with two layers of security.
How To Deposit & Withdraw Funds
To make your first deposit, simply log into your account and click “Balance >Deposits & Withdrawals” on the top right corner. Poloniex will generate a digital wallet address. Why? They currently don’t accept deposits from fiat currencies but from cryptocurrencies.
As a crypto to crypto only exchange, you will be required to enter the correct amount before making your deposit. The system will conduct network confirmation before the funds are available in your account.
Currently, Poloniex accepts deposits via their web/desktop portal and mobile website. Before making your deposit, confirm that the digital wallet address is correct for the right coin type. Failure to do so means your deposit will be lost.
To view the progress of your deposit, click “History.”
When it comes to withdrawal, Poloniex supports cryptocurrencies only. Use the withdraw option available on your Poloniex dashboard. Currently, the company supports both web/desktop and mobile site withdrawal options. Add your digital wallet address, the amount and withdraw.
Trading With Poloniex
Now that your account is funded, it’s time to trade. Poloniex has simplified the trading of cryptos by dividing the markets into tabs. Under each tab, you can view the latest prices. Furthermore, you are allowed to trade cryptocurrencies for Bitcoin, Ethereum, Monero and USDT. Select a cryptocoin from one of the tabs to purchase or sell. You can start with ETH/BTC where you get to buy and sell ETH in exchange for BTC.
To buy or sell cryptocurrency pairs, enter the price and amount of cryptocoins. Alternatively, you can select from the order book. Place the order by clicking “Buy.” This will allow the system to search for orders that match your ask price.
If your order does not match any available orders, it will become an open order. Open orders can remain so indefinitely. To change its status, cancel and place a new one.
Track your trades under “My Trades” or “Trade History.”
Poloniex has revised its fee schedule with the goal of encouraging liquidity and tighter spreads. As a result, they have developed a volume tiered maker-taker fee schedule. During trading, two parties are involved – maker and taker.
The maker refers to the trader with an existing order on the order book while the taker is the trader who places an order to match the maker’s order. Under the new fee schedule, makers are rewarded with a fee discount.
After every 24 hours, Poloniex recalculates for the last 30 days of trading volume for both spot and margin accounts.
Poloniex has proven to be a trustworthy crypto to crypto exchange. It offers an intuitive trading dashboard that is perfect for intermediates and advanced traders. Furthermore, it offers low trading fees, tight security and crypto to crypto deposit and withdrawal.
The sad news is that Poloniex does not offer a mobile app but a mobile website. Furthermore, it has received negative reviews on multiple forums regarding its customer support service and prolonged withdrawal approvals.