Poloniex review: how safe is it for trading cryptocurrencies?
How safe is Poloniex’s cryptocurrency exchange toneelpodium? Are the owners known & active te the crypto community? Right through this Poloniex review you will learn how this once insignificant substitute exchange gained user-trust, innovative functionality, and subsequently guzzled its competitors’ market share. From total customer refunds after a minor security breach, to a successful infrastructure redesign, and a bit a sheer luck – it’s no secret that Poloniex’s history is fairly the interesting read.
Poloniex is a crypto-to-crypto global exchange operating te the US. It registered with the Financial Crimes Enforcement Network (FinCEN) spil a money service business (MSB) on August 29, 2016. However, it has bot te operation since January 2014.
Number 1 Place to Buy Bitcoin
While the bureaumeubel lists the location of exchange&rsquo,s offices ter Wilmington, Delaware, research shows the address belongs to an juut. Little information is available online&mdash,including on the company&rsquo,s webstek&mdash,about ownership. On LinkedIn and company profiling webstek Owler, someone named Tristan D’Agosta identifies himself spil the founder and CEO of Poloniex. According to information he shares on thesis pages, D&rsquo,Agosta is a music composer and a former freelance writer with a Bachelor of Dokter te music from Rutgers University.
Advantages of Poloniex
- World’s largest Ethereum exchange (by average volume ter 2017)
- Go-to place for serious crypto traders seeking fresh & elegant coins for speculation.
- Provides utterly detailed charts, spil well spil efficient data-analysis devices
- Most trading interface code is executed client-side & therefore open source for enthusiasts to examine
- Offers a high-volume margin trading & lending service for major crypto assets, on top of an exchange podium
- Its services are accessible from anywhere on the globe
- Supports overheen 70 popular digital assets, among the highest number ter the industry
- Charges low crypto deposit and withdrawal fees compared to other exchanges
- Fully refunded affected users after a minor security breach
- Community representatives are active answering questions and hearing terugkoppeling on social media
Disadvantages of Poloniex
- Since May 2017 wij are watching some unconfirmed reports of users not being able to withdraw funds from Poloniex
- Private key management is centralized, exposing funds to custodial risks. See Bisq for a decentralized alternative.
- The inability to deposit fiat currency excludes all users wanting to use Poloniex to “on-ramp” into crypto.
- The customer support ticketing system is poor and sometimes non-existent
- The identities of managers and investors are unknown. No community interviews given so far.
- No known physical offices. Perhaps a security precaution – but still a big negative for trust.
- Increasingly requiring users to create accounts and verify their identity for high-volume activity.
- Latest downtime & slowness issues via the 2017 crypto boom.
- Trollbox open talk system recently deactivated. However this has helped reduce price manipulation through the spreading of misleading information.
Poloniex’s market positioning
The lack of information on co-founders, top management, and company ownership, spil well spil the absence of a physical office have caused some to question the business soundness and legitimacy of Poloniex. Even for mij, writing this analysis of Poloniex, I find it strange that the founders have chosen to remain so withdrawn. The safety of user funds on the exchange has bot an active subject of discussion on online forums such spil Bitcointalk and Reddit.
Meantime, public skill about founders, management and investors of exchanges such spil Coinbase, Openleggen and Bitstamp give them more credibility. Even with thesis existing doubts, however, Poloniex has continued to grow ter terms of its user base, transaction volumes and the number of cryptos it supports.
Poloniex has excellent figures
Poloniex receives the largest amount of traffic ter the crypto exchange industry. Its webstek gets overheen 50 million visits vanaf month. The closest exchange ter this metric is Coinbase with about 45 million monthly visits.
Poloniex&rsquo,s largest sources of traffic are the United States (24.84%) and Russia (6.06%). Other top sources include the United Kingdom (Four.65%), Brazil (Trio.14%) and Vietnam (Trio.67%).
Another feature that differentiates Poloniex with other exchanges is its lack of support for fiat currency. Some users boast that this is one of the main advantages, permit breathing-room form government regulators spil the exchange does not overeenkomst te fiat currency. That being said, Poloniex supports a large number of crypto assets. Spil of August 2017, the number of listed coins stood at overheen 70.
It vereiste be said that after the 2016 demise of Poloniex’s largest rival exchange, Cryptsy, the former acquired virtually all of it’s market share and user-base. Spil the most trusted alternative, users flocked to sign -up.
Two other popular exchanges that don&rsquo,t support fiat currency are Shapeshift (which has about 50 crypto assets on suggest) and Yobit (250 coins listed). A segment of crypto holders choose Shapeshift because it doesn&rsquo,t require users to create accounts. However, Shapeshift lacks most of the implements and services traders require such spil graphs.
Poloniex offers no mobile applications, but the mobile version of the webstek works just spil slickly spil the desktop version. The exchange has also made an API available, through which third-party developers can create implements for gegevens analysis and account management.
Poloniex is popular with users seeking to convert from one cryptocurrency to another, margin trade, and lend. Its services are accessible from anywhere around the world and it has few requirements for signing up and trading spil compared to Coinbase, Bitstamp and Losbreken.
Security at Poloniex
Spil with all centralized exchange audits, I would like to remind readers of this Poloniex review that the exchange controls all private keys to the wallets holding your cryptocurrencies. The exchange assures users that it stores much of their deposits te offline “air-gapped” cold storage. It offers 2-factor authentication for account holders, spil well spil browser recognition implements.
While Poloniex&rsquo,s promises of security may be based on sound capacity, users voorwaarde trust that the measures ter place are taut enough and that individuals te charge of funds are fair.
Ter 2014 the exchange suffered a minor security breach where 12% of all customer bitcoin deposits were stolen. Te an unprecedented stir (at the time), a statement wasgoed issued assuring users that all funds would be reimbursed. Poloniex carried through their promise to its users several months straks.
Spil the Bitcoin project itself has shown, lack of information about a founder is not always a sign of bad intent. However, spil a precaution, it is advisable to keep on the exchange only spil much value spil you need to lend, trade or exchange at any given time, especially considering Poloniex is a centralized podium with a high custodial risk.
Spil with all centralized exchanges, you should always send whatever funds you don&rsquo,t instantly need on the toneel to a wallet you control.
The Poloniex interface works nicely, except when the webpagina is under strain from DDOS or legitimate peak trading times. “Un-cached” users are greeted by a standard Cloudflare “checking your browser” pagina. Such pages are widespread among crypto sites and are used to filterzakje=-out botnet and malicious traffic.
Te 2015 the entire interface wasgoed very successfully redesigned. There are many positive Poloniex reviews mentioning how nicely the webstek presentation has come along since 2014. See the evolution for yourself:
Poloniex te 2014
Poloniex te 2017
The overall user practice is close to that of using Bittrex or Losbreken – however slightly more intuitive then the latter. You could even compare Poloniex with Shapeshift, except you&rsquo,ll need to sign up to Poloniex while Shapeshift permits guests to trade without registration. Choosing a pairing, however, is not spil straightforward spil Shapeshift. You may have to work to find the pagina from which to choose your pairing.
A common complaint from users is that it takes a long time for deposits to reflect te the user account. Users have also reported a few cases of coins sent but never displaying up ter the receiving account.
Further, many users accuse the exchange&rsquo,s customer support of poor and slow response to complaints. Some have reported that tickets sometimes take months to resolve.
Using your Poloniex Account
Signing up for an account on Poloniex is lighter than on most other major digital asset exchanges. While it observes some level of Know Your Customer requirements, the process is less stringent partly due to the fact that the exchange accepts only crypto deposits.
Users are only permitted one account, and registering more than one could result ter suspension or expulsion from the verhoging. Each account, however, offers exchange, trading and lending services. You automatically have access to all three services when you sign up for any of them.
The exchange service facilitates the movement of value from one crypto to another. On the other mitt, the margin trading service enables you to leverage your cryptos and earn gains from price switches.
If you are risk reluctant but still want to make a profit on the toneel, you can waterput up your cryptocurrencies for others to borrow and trade with. Te exchange, you will receive a assured rente rate.
When you engage ter margin trading, you essentially have access to the three sections available on Poloniex. You access exchange, a margin trading and a lending/borrowing section. You can borrow funds from the lending section to invest through the margin trading section.
Te the event you want to budge your value to another type of crypto, you will need to use the classic exchange section. It is also through the exchange section that you make deposits.
When compared to trading platforms such spil Coinbase&rsquo,s GDAX, or Bitstamp/Openbreken, I feel that Poloniex is the easiest to embark using. Once your signup is finish (this takes less than five minutes) you are ready to deposit and begin trading. The most differentiating feature from the surplus of the trading platforms, however, is the fact that Poloniex offers more risk-averse crypto holders the option of lending out their coins.
Ter addition to the three sections separated according to function, Poloniex also offers three levels of account verification.
You get the very first level of verification by providing an email address, your name and country of residence at the signup stage. The level one verification permits you a daily ondergrens deposit and withdrawal of $Two,000 worth of cryptos. You can exchange, trade and lend with this level of verification, with the only limitation being how much you can deposit and withdraw daily.
If you need to have your daily boundaries enhanced, then you will have to apply for level-two verification. You will do this by providing a physical address, postal address, phone number, date of birth and passport ID.
Along with the application, Poloniex requires you to upload an ID photo and a passport photo. With approval, your daily limit for deposits and withdrawal grows to $25,000 worth of cryptos.
You can get an even higher level account with a limit that exceeds $25,000. You apply for this level by reaching out to support. The deposit and withdrawal thresholds Poloniex offers are relatively higher than you will get from accounts on Coinbase, Openleggen and Bitstamp.
Since Poloniex accepts only crypto deposits and withdrawals, it is one of the cheapest exchanges to use. This is due to the fact that the exchange doesn&rsquo,t support “traditional” deposit methods (via fait currency), which are more costly than cryptocurrencies – due to reserve regulatory requirements, KYC vetting and interbank fees.
Both the person putting up an suggest to buy or sell (the maker) and the person picking and accepting an offerande (the taker) pay transaction fees. Generally a maker pays fewer fees te a transaction than a taker. Maker fees range from 0% to 0.15%, while those for the taker range inbetween 0.05% and 0.25%. Ter both cases, the higher the amount involved te a trade, the lower the fees paid.
Maker and taker fees apply to both the exchange and the trading toneelpodium. Lending fees are set by those putting up their funds for borrowing. Since the market is competitive, the lower the rente a lender charges, the more successful they are at having traders taking their offers.
Nevertheless, average loan offers on the toneel charge at least 0.2%. From the lender&rsquo,s earnings, Poloniex will take 15%.
Alternatives to Poloniex
Should you like to attempt something different to Poloniex, the following are the most popular alternative cryptocurrency exchanges: