If you are a cryptocurrency trader or fan, you have probably heard of Poloniex, a well-known cryptocurrency exchange. Don’t worry if you’re unsure if it’s the correct one for you. This article will give you a thorough evaluation of Poloniex, and all you need to know about; it is this Poloniex Review. First, you will go over some background information, such as who Poloniex is and where this crypto exchange is situated. Then you will enjoy comprehensive list of Poloniex’s benefits and drawbacks; let’s get started:
Poloniex debuted on the Bitcoin exchange landscape for the first time in 2014. Tristan D’Agosta founded it, with headquarters in Delaware, United States of America. It denotes that this cryptocurrency exchange functions in a highly regulated environment. Poloniex lets its customers buy, sell, and exchange a wide range of digital currencies. It covers some of the world’s most well-known currencies, such as Bitcoin and Ethereum, but it also includes some of the less well-known ones.
It is a cryptocurrency exchange that is likely to be one of the most popular. It boasts daily trade volumes of over a hundred million USD. Poloniex earns money by charging a daily premium to its users who trade on the Poloniex platform. The charge is paid by both the vendors and us, the purchasers.
Poloniex also offers extra services to more experienced cryptocurrency traders. Poloniex financing and margin trading are examples of these services. You also have the choice of using Poloniex’s lending bot to automate your Poloniex lending. Aivren is the name of this bot. However, it is crucial to understand that Poloniex lending is a system through which an investor borrows money to purchase larger amounts. When investors employ this method on Poloniex, they take funds from other cryptocurrency users on the exchange. These customers, of course, get interest on top of whatever they lend to the investors.
Advantages Of Using Poloniex Exchange:
One of the fundamental reasons to utilize Poloniex is the vast range of cryptocurrencies available on the site, which we discussed previously. Aside from the top two prominent cryptocurrencies, Bitcoin and Ethereum, Poloniex also supports important coins such as Ripple, Bitcoin Cash, Monero, and Steem. Not only that, but Poloniex also offers lesser-known cryptocurrencies like Bela, Black coin, and Bursts.
Aside from the exchange, Poloniex provides an incredible array of tools that are both necessary and beneficial for crypto-trading. Candlestick charts with a maximum period of four hours are among these instruments.
Other features include stop-limit orders and the option to zoom in and out of any of the charts you desire to watch. However, this does not rule out Poloniex as a crypto exchange for beginners. It may appear sophisticated, but trust us when we say that it features a highly user-friendly and straightforward interface for all crypto-traders, from novices to specialists.
While discussing the benefits of Poloniex, another significant advantage of using this wonderful crypto exchange is that it offers a substantial and extended level of liquidity. This is particularly important when it comes to altcoin pairings.
This is highly significant to cryptocurrency traders since it signifies and assures that there will always be someone accessible to trade with on the Poloniex exchange. This component also minimizes the total volatility risks associated with digital currencies trading.
When it comes to fees for utilizing the exchange, Poloniex is undoubtedly one of the greatest and most famous in the cryptocurrency world for making withdrawals and deposits. It’s just because you’ll only ever have to pay the blockchain transaction charge.
Poloniex Exchange Charges:
Poloniex exchange charges relatively inexpensive trading costs. As a cryptocurrency trader, you will never have to pay a max of 0.25 percent in fees. More encouragingly, this cost decreases as your trading volume increases.
Another benefit of utilizing Poloniex as your cryptocurrency exchange of choice is that you will never have to prove your identification unless you are dealing with a large sum of money.
Disadvantages Of Using Poloniex Exchange:
To begin with, one of the greatest drawbacks of using Poloniex exchange is that it does not accept any traditional payment methods. Bank accounts, as well as credit and debit card payments, are examples of this. Yes, we understand that it might come as a surprise and a disappointment, and it can also be rather unpleasant at times. This is a bit of a bad scenario for first-time users when you are attempting to deposit to begin crypto-trading. As a result, you will have to fill your Poloniex account using cryptocurrency rather than traditional money transfers.
The second drawback of utilizing Poloniex cryptocurrency exchange is that there are still issues and doubts about Poloniex’s security in the market. The cause of this tendency is a massive hack that occurred on the site in 2014. The culprits were able to take 12.3 percent of Poloniex’s total Bitcoin supply. However, a few months later, Tristan D’Agosta, the proprietor of the Poloniex exchange, reimbursed all consumers for their losses. He accomplished this by temporarily raising Poloniex’s trading fees and contributing from his wallet.
Final Thoughts: Is Poloniex Safe To Use?
Poloniex is a reputable trading platform that has been in operation for quite some time. However, having a large number of coins on one exchange is never a bright idea. Remember that every exchange and other cryptocurrency-related website has favourable and bad evaluations.
No matter which exchanges you use, you are still taking a risk. You must have faith in the exchange that your cash will not be stolen. Poloniex is a high-volume exchange notorious for a single security breach in the past. However, they successfully restored the assets to their owners. They occasionally have “DDoS” assaults, which might impair your ability to cancel your buy/sell orders so that someone else can fill them.