- Verification not required
- Low fees
- Not regulated
- No Fiat deposits
- No US users
Poloniex is one of the well-known cryptocurrency exchange platforms in the market. Founded in 2014 by Tristan D'Agosta, this exchange is currently headquartered in Wilmington, United States. Although Poloniex used to mainly cater to the crypto traders and investors in the US, they no longer cater to US clients because of the latest acquisitions. However, this exchange has managed to grab the attention of crypto enthusiasts across the world.
On Poloniex, users get to access a wide range of crypto assets, trade on margins and avail the lending services offered by the platform. This exchange is particularly known for the deep liquidity it offers, with average daily trading volume of $100 million.
However, there is a steady decline in the popularity of this exchange. Currently, Poloniex stands on the 30th spot in the list of top cryptocurrency exchanges under the ‘Spot Trading’ category. With the daily trading volume of about $55 million, BTC/USDT stands to be the most traded crypto pair in this exchange.
The trading fee structure of the Poloniex exchange is based on the industry-standard maker/taker model. Makers are the ones to add the volume to the exchange’s order book, which will eventually make the market. Hence the name Makers. Likewise, takes are the ones who take off the volume from the exchange. Typically, when you use limit orders to place your trades, you are considered makers. Contrarily, when you place market orders, you will be considered takers.
Here, makers are always offered with rebates as they are offering liquidity and takers are charged as they consume the liquidity. This pricing model is known for encouraging liquidity which is important for Poloniex as it offers a wide range of crypto pairs for spot trading.
|TIER||30 Day Trading Volume||TRX Balance||Maker / Taker Fee||TRX Maker / Taker Fee 25% Off|
|1||< $50K||< $49||0.125% / 0.125%||0.0937% / 0.0937%|
|2||< $50K||> $49||0.0950% / 0.0950%||0.0712% / 0.0712%|
|3||$50K - $1M||N/A||0.0850% / 0.0900%||0.0638% / 0.0675%|
|4||$1M - $10M||N/A||0.0500% / 0.0850%||0.0375% / 0.0638%|
|5||$10M - $50M||N/A||0.0300% / 0.0800%||0.0225% / 0.0600%|
|6||$50M+||N/A||0.0000% / 0.0700%||0.0000% / 0.0525%|
While trading on Poloniex, the trading fees are levied on your account based on which tier you belong to. There are six tiers in total, and they are designed based on your trading volume on the exchange for the past 30 days. So basically, when your volume increases, your tier increases too and your fee rate decreases.
Note that your 30-day trading volume numbers will be updated on a daily basis and your fee tier will automatically be updated as per the structure mentioned above. Also, as you can see, for the holder of TRX (TRON), Poloniex offers a 25% rebate on the fee charged.
Example: For instance, if the past 30-day trading volume on your Poloniex account is around $70k, you will be nested under tier 3 irrespective of your TRX balance. So the maker/taker fee charged on your account will be 0.0850%/0.0900% respectively. But if you pay your fees using TRX, the fee will come down to 0.0638% / 0.0675%.
Users can also apply for Poloniex Plus Silver & Gold accounts where the fees are extremely low. In the below screenshot you can find the corresponding details. There is also a Market Maker account where the exchange sets up the custom fee schedules. You can visit this link to know more and apply for the same.
The maker and taker fee charged for trading futures on the Poloniex exchange is 0.026% and 0.075%.
Margin traders are not only subject to the trading fees that have been listed in the table above but are also required to pay interest on the amount borrowed from their respective lenders. This interest rate will be mentioned in the loan offer, and the interest is charged once the margin position is closed.
On this exchange, users get to lend and borrow cryptos to trade in larger amounts and magnify their profits. Poloniex will collect 15% of the total interest that has been earned by a lender in the form of a lending fee.
Poloniex exchange provides a wide array of cryptocurrencies for its users. More than 90 crypto pairs can be accessed on this platform which is impressive. Major cryptos like BTC, ETH, XRP are of course available to access, but the below table gives you a fair idea on some of the most traded cryptos on this exchange.
The coins illustrated in the above table can be exchanged/traded against other cryptos. However, not all the permutations and combinations of these currencies can be exercised. A table has been illustrated below that will help you understand some of the possible pairings.
The trading volume on the Poloniex exchange is impressive. Retail crypto traders across the world contribute to this trading volume. Currently, this exchange is ranked 30th in the world by CoinMarketCap
Poloniex services can be accessed from most of the countries across the globe. Below is a list of the few major countries where trading with this exchange is possible.
United States customers are restricted from using the services Poloniex offers. This is because of Poloniex splitting from Circle (it's then-parent company) in October 2019. As a result of this segregation, Circle released a statement that said ‘As on November 1, 2019, the trading for all the US customers has come to an end and the US Poloniex customers should not make any deposits but withdraw their existing assets via the new Poloniex US Withdrawal portal.
Poloniex is a unique exchange in terms of how they handle deposits and withdrawals. Users of this platform can fund their accounts using cryptocurrencies alone, and there is no fee charged for these deposits. This exchange does not render support to fiat funding. However, users can still purchase BTC or any other cryptocurrency using their credit or debit card via Simplex - a crypto payments processor integrated within the platform.
With Simplex, users can make purchases in the range of $50 - $20k each day with a maximum limit of $50k each month. The payment processing fee can either be a flat $10 or 3.5% of the total transaction amount (whichever is higher).
There is a well-structured page where users get to see their total balance at a glance and also the remaining account balances in an easier way, as shown below.
Users are provided with a specific wallet address for every cryptocurrency they want to deposit to their accounts.
It is a seamless procedure to withdraw funds on the Poloniex exchange. As you can see below, all we have to do is to enter the address to which we want or funds to be withdrawn to. All the details such as Transaction Fee, Available Balances, etc. are clearly mentioned, and we liked that transparency. We didn't find any hidden fees charged while withdrawing funds as well.
They do charge a withdrawal fee for every cryptocurrency, and this fee varies from one currency to another. The below table will give you a fair idea on the withdrawal fee charged by Poloniex for some of the cryptocurrencies.
|Bitcoin Cash||0.001 BCH|
|Bitcoin SV||0.001 BSV|
|Ethereum Classic||0.01 ETC|
|Basic AttentionToken||9.0 BAT|
A user can also transfer funds between different Poloniex accounts without getting charged with the help of off-chain transfers. Please note that these numbers are not constant as they keep changing with time. For instance, the latest update stated that the users would not be able to deposit or withdraw ‘USDC’ via bank wires starting from February 13, 2020, within their accounts on Poloniex.
Since almost all the transfers happen in crypto, the deposits and withdrawals are almost instantaneous without any long delays.
Very recently, Poloniex has dropped all of the forced KYC checks for its users to access all of its services. Therefore, users can now trade on the Poloniex exchange without any verification. All you need to provide is the name and email address to get started. But, it is recommended to complete the verification procedure to access all the features of the platform.
There are two levels of the verification process, and we found the process a bit extensive. However, the process is quick and does not consume much time. Let’s discuss each of the verification levels in detail.
The Level-1 verification is obtained by default once the user has signed up on Poloniex and verified his or her email. The Level-1 verification helps in making unlimited spot trading, unlimited deposits, $10,000 daily withdrawal limit, and lending. However, this verification does not unlock the margin trading feature of IEO LaunchBase. Users who stop at Level-1 verification might face some problems in the account recovery process in case of adverse scenarios.
Once this verification is completed, users can avail lots of features like $500,000 daily withdrawal limit, margin trading, custom withdrawal limits, unlimited spot trading, unlimited deposits, and a faster recovery in case a user has lost access to their account. The user must submit the following information and documents to complete this level of verification.
|Form to Fill||Digital Form on Poloniex Website|
|Age||21 Years and above|
|Personal Information||Full Name, Gender, Date of Birth, Phone Number|
|IDs Required||Two valid ID's government-issued IDs are required for the name/age and proof of residence|
|Personal Identification Proof (For name & Age proof of a person)||A Passport or government-issued ID providing the following details: Photograph, full name, and date of birth, Country of the issue and issue/expiry date, Passport/ID number and MRZ number|
|Accepted IDs for Personal Identification Proof||Passport, Driving License, National ID Card.|
|Residency Proof (for the proof of residence)||A clear copy of a recent utility bill or bank statement (no older than six months) showing your name, updated home address, date of issue & the issuer of the document.|
|Accepted IDs for Residency Proof||A bank reference letter, Bank statement, Credit card statement, Council tax bill, Tax letter, Electricity Bill, Gas Bill, Water bill.|
The only hack that Poloniex has experienced was during its early days. Despite that, the exchange has totally recovered and today is considered as a reliable and safe cryptocurrency exchange platform with high-security standards.
As a result of this hack, the exchange had lost 97 bitcoins, but the Poloniex managed the situation in a professional manner which reflects their conviction.
After the hack, all the user account balances on the exchange were reduced by 12.3%. This is to compensate all those users who had lost their funds. All those users who had their balance deducted were compensated by offering the leadership in the exchange. In this way, Poloniex was able to address the concerns of all the users without causing any financial dent on any specific individual or a group. There were no considerable breaches after this incident.
As of now, Poloniex provides the following comprehensive security measures for all of its users.
However, there are still some concerns in terms of security as per the expert opinion.
Poloniex has secured a Grade BB in security as per the CryptoCompare Exchange Benchmark July 2020. This exchange has been ranked on the 19th position in terms of security and has slipped two positions in comparison to Q4 2019. The security rating is below average as the score is only 7.1 out of 20 points.
This low rating could be mainly because of the fact that this exchange is classified under unregulated exchange category and it functions outside the purview of the traditional financial system. This is the reason why Poloniex is a crypto-to-crypto exchange only. There is no guarantee if things go bad, although the executives and leadership have proved their ethical behaviour in the past. Even though this exchange is considered safe, it is recommended to not store huge crypto funds on this exchange platform for a long time.
We found the User Interface of Poloniex to be simple and easy to understand. We hardly faced any issues when navigating through the features or while accessing the performance analysis and charting tool that it provides. It would be easy for even the novice traders to understand all the basic functionalities offered by this exchange.
To see the market movement of any crypto asset, all you need to do is click on the 'Exchange' button as shown below and pick the crypto pair you want to analyze. The overall look and feel of the charting tool are simple and neat in terms of appearance. It is very easy to toggle between the different cryptos as well.
As seen in the image below, users get to choose the order types (Limit, Stop Limit) right from the buy/sell area and place an order with a single click. The fees are also clearly mentioned which will give a clear idea to the traders on the charges they would incur by the end of the trade.
The charting area is a paradise for technical traders as it is directly taking from the industry best software - TradingView. With hundreds of indicators, technical tools and user-friendly interface, novice traders can also educate and upgrade their technical skills using this trading terminal.
Below is the screenshot of the Margin Trading terminal of the Poloniex exchange. Margin trading is typically used by experienced traders with a high-risk appetite. It involves the borrowing of funds to trade the markets with more funds in anticipation of huge profits.
The dashboard of Margin Trading looks very similar to the spot Trading Window. The only difference is the ‘Margin Account’ summary table appearing on the right window.
If a user is making use of this feature, then all the money they used to trade shall be borrowed from other users who have agreed to lend their funds on a peer-to-peer basis. The funds in the account of the user will stay as collateral for margin trades.
Also, when someone lends you the funds, you are required to pay interest which is mentioned while placing your trade. All of this can clearly be seen in the User Interface of Poloniex. Below is an image of what Buy area looks like when a user is exercising margin trading.
In this above image, you can see a box for ‘loan rate’ apart from other regular positions. This reflects the rate of interest for the loan amount that a user is asking for margin trading.
Users also get to trade crypto futures like BTC Perpetual swaps on the Poloniex exchange. Leverage can go as high as 100x while trading these instruments. Please visit this link to know more about Futures trading.
On Poloniex exchange, users get to lend funds and seek interest for the same. In the below image, we get a fair idea as the terms are simple and self-explanatory. The daily rate refers to the % of interest charged to the borrower on a daily basis. You then enter the amount and the duration to create the loan offer. It is that simple.
By clicking on the ‘wallet’ option appearing on the top right corner, your total available balance shall be seen on the screen. You will also be able to deposit or withdraw the funds from the same window.
It is clear that users are offered a lot of functions under the same window of the ‘Wallet’ tab. Every important feature has been placed in the right place, which makes it easier for users to quickly access them.
For the traders who are interested in reviewing their past trading activities, can access that data under the 'Activity’ tab. Here, users get to view their Wallet deposits, withdrawals, open orders, Trades, Futures, and Loans. You can see here below how every function has been clearly organized.
In the same window, there is another interesting option called ‘Trade Analysis.’ This can be used for analyzing the trading activity by entering the coin name, selecting the market, and then clicking on the ‘Analyze’ button. This will offer a comprehensive data set for users to analyze their trades in any given time frame.
The customer support of Poloniex is below average. It can be considered as the weakest area of this exchange, and there is a lot of scope to improve. Users can contact the support team only via an email ticket system. The response time for this is too long. The answers are also vague and are hardly relevant. The FAQs section is also weak, and users are less likely to benefit from it. Both the questions and answers are limited, and the existing ones provide less detailed information.
We also checked an independent consumer review portal - ‘TrustPilot’ and found that majority of the users are not satisfied with the support team’s late response or no response at all. With a meagre 1.6 TrustPilot score, it is clear that same is the case for users across the globe.
There is no doubt why 77% of the total users have rated Poloniex as ‘bad’ on the TrustPilot portal. Only a very small section of 5% found the exchange to be excellent as we can see in the above image.
We made a further analysis on why people were not satisfied with this exchange and its customer support services and found the following concerns as the most common ones.
Poloniex offers lots of interesting and useful features apart from just cryptocurrency trading for its users. Let’s have a look at some of the most interesting features.
If you are a novice trader or crypto investor, this would be one of the best features you can look out for in an exchange. On the Poloniex exchange, users get to earn without having to risk and trade with their own crypto funds. Currently, major cryptos like BTC, stable currencies like USDC, USDT, and 16 other crypto-assets can be lent. The interest earned gets deposited directly to your account. Below you can find the interest rates for some of the most lent cryptos on the exchange.
Users also get to receive rewards by staking their crypto funds like TRX or ATOM with Poloniex simplified staking procedures with no lock-in period.
Users on Poloniex can also directly access Poloni DEX from the homepage of the website. It is a decentralized exchange (DEX) that was launched in the year 2018 and is based on the TRON network. It was acquired by Poloniex on November 27, 2019. If you are particularly looking for decentralized trading services, you can this service would be useful for you.
Poloniex mobile application is very popular among its users because of its build quality. Almost all of the features that are available on the web trading platform can be accessed on your smartphone using this app. The Poloniex app is available to download for both Android and iOS devices.
The UI and UX of the Poloniex Android app are great and very easy to navigate.
On launching the application, we can see various crypto markets. Users can see all the cryptocurrency assets that can be traded with or against the main assets like TRX, BTC, USD, and ALTS. Right on this page, we can toggle between spot and futures markets.
Users can also fund their accounts instantly using their mobile apps. They can initiate their trading activities by tapping on the wallet icon appearing at the extreme bottom left. By tapping the two arrows on the bottom right of the page, we get to access Transfer Balances, Deposits and Withdraw.
Identity verification can also be done easily on the mobile app when compared to the Poloniex website. It is clear that the mobile UI is easy to use because like a lot of functions can be explored easily.
Users can tap on the graph icon appearing at the bottom middle to view the performance analysis chart for any cryptocurrency pair. Key metrics like Last Price, 24 hours change, Prices of the asset on the graph, and much more can be easily found at a glance. Technical analysts would find the option to toggle between timeframes pretty useful.
Here, users can see all of their past activities with respect to withdrawals, deposits, distributions, bank withdrawals, and bank deposits.
The Android application has a rating of 4.5 stars out of 5 on the Google Play Store. Most of the comments said that they found the application very useful. Fast, efficient, and sleek UI are the most frequent comments we read in the reviews. Some have even claimed that the mobile app UI is better than the web version.
On the flip side, a few of the comments said that there were some basic issues while using the app, such as unexpected crashes, problems in verification, and issues during withdrawals.
The iOS version was found to be equally amazing if not better. There were no such issues like unexpected crashes or problems while making deposits or withdrawals. Most of the users found the features like smooth layout, valuable charting tools, and embedded chat box to be most useful. While using the application, we also noticed that the trade execution was faster on the iOS app compared to the Android version. This app has a 4.6 rating out of 5 on the App Store.
Despite the turbulent start due to the security intrusion, the exchange managed to build back the Reputation by undertaking ethical decisions that involved the restoration of the financial damage caused to their users. Offering one of the largest selections of coins to its users, low trading fee, great mobile application and simple user interface are the major pros of this exchange.
The customer support of the exchange needs a lot of improvement measures. If this exchange wants to expand and gain the trust of its users, it is crucial to address the concerns of traders with appropriate solutions. Also, it is important to not forget that Poloniex is unregulated and hence, storing a considerable amount of cryptos for prolonged periods is definitely not a good idea.
It is hard to decide to whom this exchange is exactly catering to. If we think of novice traders with no crypto knowledge, there is no easy entry for them to Poloniex as fiat deposits are not allowed.
No. If you deposit your coins to a wrong address, Poloniex won’t be able to recover those funds. They have clearly stated that the token recovery process is very complicated and can result in considerable loss of resources. The recovery process is next to impossible because the blockchain transactions are permanent and irreversible. Therefore it is recommended to double-check the address you are sending your cryptos to.
One-time code is a security measure provided by Poloniex for all those users who have not activated the 2FA (2-Factor Authentication). Here, you are required to feed a one-time authentication code while signing in from an unfamiliar location. This one-time code is sent to your registered email address, and it just works like a typical OTP.
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