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When it comes to exchanges or exchange houses to sell, buy or trade bitcoin (BTC) and other cryptocurrencies , Poloniex stands out among its competitors. Its platform is designed to be user-friendly, and its commissions are some of the lowest in the market.

In this article we will show you everything you need to know about this exchange, including what services it offers, if it is really safe and what you must do to operate in it.

What is Poloniex?

It is a cryptocurrency exchange, whose headquarters are located in Seychelles. In addition, it is one of the most recognized brokerage houses for its long history. On its platform you can access loans, do traditional trading, margin trading or buy / sell bitcoin and other crypto assets.

But this is not the only thing that Poloniex offers you. One of its best features is that operates globally. According to CoinMarketCap, its daily trading volume is approximately USD 250 million and it has more than 200 pairs for spot trading (spot) and 25 trading pairs for margin trading (with leverage).

On the other hand, identity verification is optional, it is only a requirement when making transactions greater than USD 10 thousand. The registration process is simple and fast, since there is little data requested.

Poloniex allows you to operate from iOS or Android devices, as well as from the web; It has http API and Websocket. And the interface of its platform is intuitive. Its reputation among users is good. However, a drawback is that its platform is not available in Spanish.

About the history of the exchange Poloniex

This exchange was founded in January 2014 by Tristan D’Agosta, which makes it one of the first in the bitcoin market. Its parent company is Polo Digital Assets, Ltd , although it previously belonged to Circle, the company behind the stablecoin USDC. At first, its headquarters were located in the United States, a country with multiple regulations regarding cryptocurrencies. Therefore, with the arrival of a new owner in 2019, the company moves its headquarters to Seychelles. This has allowed it to acquire a more open and loosely regulated approach.

Today, Poloniex is not only an exchange for exchanging crypto assets and trading. Besides, it has platforms like Wink, where you can play and bet with bitcoin and other digital currencies, and JustSwap , made for trade assets DeFi based on TRON , an ecosystem of applications decentralized founded by Justin Sun.

The goal of JustSwap is to provide an open and transparent financial platform that everyone can use. In it it is possible to obtain loans in stablecoins. The system is based on two tokens, the USDJ, which is linked to the US dollar in a 1: 1 ratio, and the JTS, which is to pay interest and carry out other activities on the platform.

What does the bitcoin exchange Poloniex offer you?

There are many possibilities with Poloniex, since it is more than a platform for sell or exchange crypto assets. These are the services it offers.

Purchase of bitcoins with national currencies

Poloniex includes the use of credit cards, debit cards or a bank account as a payment method, which means that it is possible to acquire bitcoin and other assets with national or fiat currencies, such as the dollar or euro. This thanks to the union of Poloniex with Simplex, its main payment provider.

Loans

Is it possible to earn money with Poloniex? The answer is yes. One way to do this is through your P2P loans. Thanks to this alternative, you can generate passive income by lending cryptocurrencies with interest. The minimum loan amount is 0.005 BTC. Regarding rates, each loan offer has a different interest rate. But, the exchange charges 15% of the interest earned by each lender as commission.

Trading Spot

With Poloniex you can buy and sell bitcoin and other crypto assets, such as Ethereum or Dogecoin . In the trading section you will find multiple tools to operate easily. Not only do you have graphics, you also have a Trollbox, a live chat where you can communicate with other users. There are price tables, depth charts and market operations.

Margin Trading

It is not only possible to carry out cash operations. Poloniex also allows you to do low fee margin trading, with a leverage up to 2.5x . Some of the crypto assets available for margin trading are bitcoin, ripple, ethereum, tron, monero, bitcoin cash and EOS.

Futures

If you want to trade futures and bet on the upload or download of a digital currency, you can do it in Poloniex. The trading fee in this market is 0.01% for the creator and 0.075% for the taker. You will have charts provided directly by TradingView to keep up to date with all fluctuations and changes that occur.

PoloniDEX

This is one decentralized exchange platform based on TRON . In it you can exchange a wide variety of cryptocurrencies, such as bitcoin, ethereum, TRX, JST, litecoin and more. It is a system that is characterized by its transparency and accessibility, although it is a relatively new project, so it does not have enough liquidity. This makes it difficult to carry out exchange operations.

What do you need to trade bitcoin on Poloniex?

First, register on this exchange, an easy task. You simply need an email address and set a password . Those are all the data you need to get started. You must be over 18 years of age and read and accept the terms and conditions of the company to operate in it.

Once you complete the form and click on “ Sign Up ”(Register), you will receive an email to the address you previously indicated to complete the registration process. To do this, you just have to follow the steps mentioned there. Now, for those users who want to make transactions greater than USD 10 thousand per day, it is necessary to perform the KYC verification. This verification is by levels, so that, while The higher the level, the higher the limit to operate.

What documents are necessary? It depends on each level. At level 1, identity verification is not mandatory , so you only need an email and create a password. To go to level 2, they request a telephone number, date of birth, personal identification document with photo, proof of physical address and a photo of the user with identification. After sending these data, the system is in charge of verifying them. Confirmation time varies, but usually does not take more than 24 hours.

Characteristics of the exchange of bitcoin and other cryptocurrencies

Let’s analyze the most outstanding characteristics of one of the oldest exchanges.

Security

In 2014, two months after its launch, Poloniex suffered a cyber attack in which it lost 97 bitcoins . Because of this, the company learned the importance of investing in its security systems. Since then, the exchange has managed to recover in terms of security and gain the trust of its customers again.

Today, the platform has security measures such as two-factor authentication, protection DNS cache based on cryptographic signatures, email confirmation, IP blocking, session log history, protection against DoS attacks and more. However, it is not advisable to leave the funds deposited in the platform for a long time. It is best to keep them in cold storage wallets in which the user has the key.

Interface

Its interface is elegant and easy to use. Although it may not be the simplest option for a person who has no experience using these types of platforms, it will surely be adapted in no time, since each section is clearly identified.

It is easy to trade cryptocurrencies on this exchange. After registering, the next step is to deposit the funds in the section “ Wallet ”. If you don’t have crypto assets, there is the possibility of buying them with a credit or debit card thanks to its integration with Simplex. Then, you can go to the Trading section to start trading bitcoin.

Mobile app

You can access the Poloniex website from your mobile device without problem. Here you have the option to trade from your application, available for iOS and Android, although keep in mind that the app does not include all the functions found on the website , such as margin trading or buying bitcoin with bank cards. However, it is an option for spot trading, managing accounts and creating alerts when you are away from your computer.

Support and customer service

There are several options to make any query. They have support with a ticket system, live chat, a section with the most frequent questions and social networks, such as Facebook, Telegram and Twitter, where they are usually active in their official and support profiles. Their customer service is available 24/7.

Deposit and withdrawal methods

Transactions are made only in cryptocurrencies . Users can buy bitcoin and other digital currencies with a credit or debit card using Simplex. Some of the national currencies that Simplex accepts to buy crypto assets are US dollars, Australian dollars, euros, Argentine, Colombian or Chilean pesos, among others. You can buy up to USD 20 thousand in one day and USD 50 thousand in a month. The payment processing fee is USD 10 or 3.5% of the total amount, depending on which of the two is higher.

On the page there is a deposit and withdrawal section in which the client is provided with a wallet address for each cryptocurrency, in case they wish to deposit. To withdraw, you simply have to enter the wallet address to which the funds will be deposited, be it in bitcoin, ether, or another.

Cryptocurrencies

Today, Poloniex trades with more than 200 digital currencies . Among them are:

• Bitcoin (BTC)

Ethereum (ETH)

• Ripple (XRP)
• Bitcoin Cash (BCH)
• Binance Coin (BNB)
• Dash (DASH)
EOS (EOS)
• BitTorrent (BTT)
• Litecoin (LTC)
Compound Governance Token (COMP)
AAVE (LEND)
• MakerDAO (MKR)

These are just some of the available options . On their website you can consult the complete list of assets.

In what countries is available

It operates in 68 countries, including Spain, Uruguay, Venezuela, Ecuador, Panama, Colombia, Mexico, Bolivia, Honduras, Argentina, Costa Rica and Chile. The company does not provide its services to residents of countries such as Cuba, North Korea, Iran, the United States, Syria and Sudan; this due to its government regulations.

What are Poloniex commissions and fees?

An important part to consider is the commissions charged by the exchange, because, depending on this factor, you can analyze how profitable it is to use said platform. In the case of Poloniex, stands out for having one of the lowest commissions in the market when compared to other exchange houses such as eToro, Huobi and CoinBase Pro. Although not it is as low as Binance, whose base rate is only 0.1%.

Poloniex’s fee schedule is easy to understand. It varies depending on whether it is the creator of the trade or the taker, as well as the volume of the trade within 30 days.

Poloniex trading fee table. Source: Poloniex

The base rate is 0.125% for a transaction less than USD 50 thousand. These commissions are charged per operation. The good news is that the higher a user’s trading volume, the lower the fee rate.

Futures trading fees are 0.01% for the creator and 0.075% for the taker. Margin interest rates depend on the amount being borrowed. In that case, the interest rate is specified in the loan offer and charged after the position is closed. In loan fees, Poloniex charges the lender a 15% commission on the total interest accrued for each loan granted.

You will not have to worry about deposit fees, as the exchange does not charge them. If you want to make withdrawals, the commission depends on the transaction cost of the network, so it varies according to the network congestion and other factors. To know this rate, you have to go to the section “ Wallets ”and choose the currency you want.

Conclusion: Is Poloniex a good exchange for bitcoin?

Poloniex gives you many alternatives to trade with bitcoin and cryptocurrencies , regardless of whether you are a beginner or an expert on the subject. So there is no question of its ability to meet the needs of all types of investors. But what makes it different from other exchanges?

When compared to eToro, CoinBase Pro or Huobi, its commissions are some of the lowest, although not as much as those of Binance and Bitfinex . As for the options for trading, it has more than 200 digital currencies. Despite It is not the exchange with the largest number of cryptocurrencies, it does have enough alternatives to operate comfortably.

Unlike other exchanges, Poloniex has more services apart from trading and exchanges. You can access loans, your DEX, a casino and JustSwap. In short, it is a secure platform, with all the necessary functions to operate in the bitcoin and cryptocurrencies market efficiently and without complications.

The Review

Poloniex Exchange