When cryptocurrencies entered the globe, the main question that people kept asking was how to trade and make huge profits. Taking into consideration that cryptocurrencies serve as alternative currencies, exchanges have become an important component in raising awareness, welcoming new users, and demonstrating the role of cryptos in the society.
Poloniex is the most diverse cryptocurrency exchanges in the globe. The exchange provides great liquidity for most altcoins that are tradable against Bitcoin. It was founded by Tristan D’Agosta in 2014. Unlike other cryptocurrencies that simply provide a platform for trading different cryptos, Poloniex ensures that all users remain fully anonymous. This is very important in line with the target of keeping transactions in cryptocurrencies private and anonymous.
The exchange is engineered to help keep hackers out, provide full-time monitoring, and make funds available to users. This means that your altcoins on the trading platform can be used to take advantage of any emerging investment opportunity to make huge profits.
How does Poloniex exchange work?
To use Poloniex exchange, the first step is getting a user account. This is very simple and can be completed in less than 5 minutes. Simply visit the Poloniex website and provide all the required information for creating a new account. The verification can be seen to form two levels of authentication.
Here, you have to get an email verification that mainly requires personal details such as name and address. If you do not intend to do a lot of transactions, you can operate at this level of authentication. However, you will be limited to daily withdrawals of $2000 worth of altcoins. The trading margin feature is also not available at this level.
The second verification requires more details including a scan of personal IDs such as passport and telephone number. Verification is comprehensive because the transaction amounts are generally higher compared to the first level. The support could contact you for more information if additional details are necessary. The withdrawal limit for level two authentication is $25,000.
Note that there is a third level of authentication that allows users to transact more than 25,000. However, Poloniex does not share the requirements publicly.
The charges for making any transaction on the network depend on the amount being transacted. If you are transacting amounts below 600BTC, the maker and taker are charged 0.15% and 0.25% respectively. However, the percentage keeps reducing as the amount transacted goes up. For example, transacting amounts more than 24,000 BTC attracts no fee for the maker while the taker is charged a minimal fee of 0.10%.
The main Poloniex exchange features
The main reasons that make Poloniex stand out from other exchanges is its unique trading features. They are unique and aimed at ensuring the platform delivers great user experience.
The exchange market
This is perhaps the most important feature in Poloniex. It provides users with the details about the target markets and prices of different cryptocurrencies. You simply need to pick the preferred currency pair to know the last trading price, the 24hr change progress in percentage, and high & lowest gains.
The feature also brings the traded volume for the selected cryptocurrency pair. On the far right side, you can hit different pairs to get related details before making the right decision.
Unlike other exchanges that only allow users to trade on the currencies they have in their wallet, Poloniex is different. It provides loan opportunities for users. The lending feature allows users to check the available opportunities and get direct funds to make the purchases. This is very important because you will never miss an opportunity because the funds in your wallet are limited. Make sure to check on loan offers, the demand, eligibility, and create an account to borrow.
The margin trading
How well do you understand the target market? The margin trading feature in Poloniex digs deeper into the crypto of choice to demonstrate the expected margins. You can even generate charts to follow how different cryptos have been performing and make the best decision.
The stop loss feature
One thing that traders in cryptocurrency exchanges must agree with is that risks exist just like the opportunities. For example, Bitcoin recently hit the $10,000 mark but fell back to the $9500 mark within a few hours. The stop loss feature helps users to set the loss targets to avoid making huge losses.
Pros of using Poloniex
- The exchange provides loan opportunities for the platform users. This means that you can trade more than you have in the cryptocurrency wallet.
- The high level of security and involvement of expert teams in running the exchange has made a lot of people to develop trust in the system.
- The exchange has very helpful features especially the stop loss one that helps to prevent the extent of losses that one can incur in case the price of the targeted crypto asset tumbles.
Cons of using Poloniex
- Though Poloniex allows users to trade in very many crypto pairs, it does not allow them to use fiat currencies. This means that if you have the fiat currency, a third party to convert it to Bitcoin will be required. The extended chain is likely to raise the overall cost of trading in the platform.
- The customer support of the exchange has recently become very poor. Many people have complained about the system taking very long to clear withdrawals. Besides, queries to the support also take very long or are never replied to.
- The exchange lacks a mobile app for traders who would like to trade on the go. This means you can only trade when glued to your computer at home or office.
- There have been claims of Poloniex being used by scammers targeting Ethereum classic. While the accusations have not been proven in many cases, they have greatly tainted the name of the exchange and made people fear to join it.
Poloniex trading model greatly mimics that of a conventional forex trading platform. Its unique features are particularly impressive because they help users to understand and trade effectively without incurring a lot of losses. Even though it is a very promising platform, the emerging issues such as claims of withdrawals getting held for days and poor customer support could compromise its growth. Whether you want to try a hand in the world of cryptocurrencies, this is a great exchange to consider.