Cryptocurrency exchange Poloniex
Poloniex is an American company established in 2014. The main office is in Boston. The founder of the exchange is Tristan Dagosta, whose biography is practically unknown.
Initially, the service was created to carry out trading activities only in the US financial market, but after the exchange became popular, it was decided to expand the geography and make it accessible to users from all over the world.
In 2018, Tristan sold Poloniex to Circle. The deal amounted to $ 400 million. Rumor has it that the sale avoided the Poloniex Exchange prosecution by the Exchange and Securities Commission (SEC) for non-compliance. In exchange for Polonix becoming law-abiding and registering its activities under all US laws, the SEC agreed not to take any measures for the site’s past activities.
According to the statement of the new owners of the Poloniex exchange, they plan to work towards scaling up this business, add new tokens to the listing and integrate support for fiat currencies. At the moment, Poloniex does not yet support the work with fiat.
Today, the Poloniex exchange supports 60 cryptocurrencies, including the Tether (USDT) and USD Coin stablecoins and a little less than 100 currency pairs. The site’s interface is available only in English, so we hope that our article will be useful for Russian-speaking users and will help to deal with the basic issues of working with the Polonix exchange.
How to trade on Poloniex
- Register on the exchange
- Pass verification
- Set up your account security
- Make money or cryptocurrency
- Get acquainted with our section ‘Trading on Poloniex’
- Start trading
- Next, we will talk in more detail about each item and analyze what problems may arise when working with Polonix.
To start working with the Polonix exchange, you need to create a personal account. This process will take you no more than 5 minutes.
First you need to open the official Poloniex website and click on the “Sign up” button in the upper left corner or in the middle of the start page.
Within a few seconds, an email will be sent to your mail indicating the link that you must click to activate your account. If you cannot find an incoming email from Polonix, check the Spam folder.
With the help of such simple manipulations, the registration process on the Polonix exchange is completed.
Previously, to work with the Poloniex exchange, it was enough to simply register. Now, in order to carry out trading activities on this site, you must pass verification on the exchange. According to the Poloniex team, this was done to combat fraud on the stock exchange and increase the transparency of the company.
If you are looking for a platform for a quick start, we recommend that you read articles about exchanges without verification.
The verification phase continuously follows immediately the registration on the exchange.
After you have activated your account, the system will redirect you to a page with personal data. Filling out the profile is the first step in the verification process.
Here you must indicate your address, including postal code, individual tax number and contact phone number. It should be noted that the exchange can use your personal data only within the framework of the law, most often this is possible when concluding contracts or in cases where the exchange must comply with its legal or regulatory obligations.
After filling in all the necessary data, click the “Submit” button.
The next step in the verification process is to verify your identity. To start authentication, click the ‘Start’ button.
You will be asked to select a country and one of the documents that you will use for identification.
Then you need to upload a photo of the selected document. It is important to know that the photo of the document should be color, clear, and also saved in JPG or PNG format.
After downloading the photo of the document, you should also send a selfie with a text note in your hands, on which should be indicated the current date and the inscription ‘Poloniex’.
Further, all data will be sent for verification. This process usually takes a few minutes, but can take several days. Upon completion of verification at Poloniex, you will be sent a letter to the email address specified during registration, you can also see the status of the verification on your profile page.
It should be noted that after passing the verification, you are assigned a standard user level and a maximum daily withdrawal limit of $ 25,000.
You can also become a user of the gold level and increase your daily withdrawal limit to $ 100,000. To get a gold profile level, you must send a request to the Polonix team.
The highest account level is platinum, with a withdrawal limit of more than $ 100,000 per day. To achieve it, you must definitely enable two-factor authentication and provide Skype contacts. After that, the Poloniex exchange team will contact you to conduct a personal conversation to make sure the accuracy of your data and the security of your account. After the conversation, the Poloniex team decides to change the account level.
Platinum accounts gain access to the use of the white list of addresses, which is an additional security measure and ensures the sending of funds leaving Poloniex to pre-authorized wallets.
Please note that whitelisting is required for transactions in excess of $ 200,000.
Approaching the security issue, it is impossible not to note that at the beginning of its activity, the Poloniex exchange was subjected to a hacker attack, as a result of which 97 BTC was stolen from user accounts in total. Then the Polonix administration decided to reimburse all user losses from a ‘personal pocket’. I would like to believe that such a negative experience at the very beginning of the project made the Poloniex team pay due attention to the reliability and safety of user funds.
Let’s see what security measures the exchange offers us today.
Naturally, one of the most popular ways to secure your account is to enable two-factor authentication (2FA).
Because Poloniex exchange does not use SMS verification, in order to activate 2FA, the first thing is to install one of the applications on your mobile device or desktop.
Poloniex is an exclusively cryptocurrency platform: fiat currencies are not used here, although the company is exploring this possibility. At the moment, payments can be made only in cryptocurrencies quoted on Poloniex – these are more than 70 popular digital currencies, the most famous in the industry. The platform provides customers with various graphs, charts and data analysis tools. Clients are offered three options: exchange, margin trading and lending: You can change one cryptocurrency to another; You can take a loan under cryptocurrency and trade with leverage, making a profit when prices change; You can borrow your money to other users by agreeing on the interest rate and time period. In addition, you can borrow from other users.
There are no fees for depositing funds; withdrawal fees depend on the particular network. At Poloniex, a scheme is used for all types of trades, in which the commission is paid by the liquidity consuming party. This stimulates the growth of liquidity, as those who provide it, that is, market makers, receive a discount. This also leads to a narrowing of the spread, as market makers compete with each other. The higher fees paid by the liquidity consumer are usually offset by good prices due to the narrow spread. Every 24 hours, Poloniex evaluates the user’s role in the consumption or provision of liquidity for trading in the last month and dynamically adjusts the commission.
Despite the wide functionality that Poloniex offers us, the exchange has definitely lost ground. First of all, all the blame for the growing competition. Most likely, the Poloniex team at one time underestimated their competitors and could not stay on the podium.
A “headshot” was the introduction of mandatory verification for all traders in 2018. When the Polonix exchange began to freeze all unverified accounts without warning in order to expedite the verification of users, traders did not appreciate such a coercion and poured their negativity into hundreds of angry comments.
Oil was not added to the fire by the far from flawless verification process, which made Polonix customers even more embittered. Although the administration of the service writes that this process takes several minutes, be prepared that you will wait for an answer for several days, or even longer.
In confirmation of this, a lot of comments can be found on the network that the process of user verification is unreasonably delayed.
Among other things, many complaints are being poured from the clients of the exchange towards the work of the support service. Of course, having any problems related to finances, each user expects a prompt reaction from the exchange and maximum involvement in solving his problem. But apparently customer focus is also not a strength of Polonix.
Also, periodic freezes are noticed in the site, due to which it is necessary to re-log in again, and this significantly affects the efficiency of the site.
In a series of negatives, positive reviews about the stock exchange sometimes slip. But, unfortunately, they are negligible.