About poloniex exchange
About poloniex
What sets this exchange apart? Discover more about Poloniex in this review where you'll find all the information, about an exchange that was acquired by Circle, a US based payments processor in 2018. Notably Poloniex now boasts Tron founder Justin Sun as one of its investors.
3 Steps to Sign Up to Poloniex
To create an account, on Poloniex you can follow these three steps;
1. Sign Up and Verify your ID
Start by providing your email and password to register. Make sure to check the User Agreement box click on the 'Sign Up' button. You will receive a confirmation link in your email that you need to click to activate your account. Initially your account will be set up as Level 1. You can proceed to the step to verify your ID and reach Level 2.
2. Add Funds
Once you have successfully created your account the next step is to deposit funds into it. Go to the Balances page. Click on the Deposit option. Choose the cryptocurrency you want to deposit and specify the amount. If you don't have any cryptocurrency yet don't worry! You can purchase coins using either a credit card or bank transfer. Simply follow the instructions provided on screen for depositing funds into your exchange account.
3. Purchase your Crypto
Click on the "Buy, with Card" option. From there select the fiat currency you wish to use choose the asset you want to buy and enter the desired amount. The fees and total transaction charges will be shown to you. If you decide to proceed click on "Buy Now." Follow the provided instructions to input your wallet address and confirm the transaction.
History of Poloniex
Poloniex was launched in 2014 making it one of the cryptocurrency exchanges and trading platforms, in operation today. Tristan D'Agosta, an entrepreneur who previously ventured into the music industry in 2010 founded this Delaware based cryptocurrency exchange.
Unfortunately in March 2014 Poloniex experienced a security breach resulting in the loss of 97 bitcoins deposited by its users. Despite this setback the management team received praise for taking action to compensate those affected by the attack.
To expand its presence in the industry Poloniex became the platform to list Ethereum (ETH) in 2016. This move significantly improved its liquidity. Contributed to its popularity leading up to Bitcoins surge to $20k against the US dollar.
In 2018 Circle, a US based payments firm acquired Poloniex for a sum of $400,000. With this acquisition Circle aimed to position Poloniex as the regulated cryptocurrency exchange, in the United States. As part of this plan several coins were delisted from the platform to comply with requirements.
In July 2019 users, from over 60 countries gained the ability to make credit card payments and purchase cryptocurrencies. This convenient feature was made possible through a collaboration between Poloniex and the payment processor Simplex.
Later in November 2019 Circle, the parent company of Poloniex announced that an investment group from Asia had acquired the exchange. Interestingly among the investors was Justin Sun, the founder and CEO of Tron.
Under leadership Polo Digital Assets Ltd was established as a company for overseeing Poloniex. The headquarters of this company were relocated to Seychelles, a island in the Pacific.
As part of these changes Poloniex made its services unavailable, for residents of the United States. Additionally both web and mobile app interfaces underwent a redesign to enhance user experience.
Regulation and Security
Poloniex, a cryptocurrency company that was established in the United States than six years ago made an effort to obtain regulatory approval, from FinCEN. Additionally it complies with data protection laws enforced by authorities in Europe and the UK. In particular the exchange is subject to regulations set forth by the Information Commissioners Office (ICO).
While Poloniex has recently relocated its operations to Seychelles it remains committed to ensuring the security of its users funds and information. In fact the company has taken measures to enhance its security protocols in response to increased pressure, on cryptocurrency companies regarding money laundering and counter terrorism financing.
Fees and Costs
Poloniex remains a choice, among users due to its fee structure compared to other cryptocurrency exchanges. Traders specifically benefit from one of the fee schedules in the industry.
When using Poloniex you will encounter fees for spot and margin trades as for withdrawals.
The fees and costs incurred on the platform depend on whether you're a taker or a maker along with your 30 day rolling trading volumes and account level/type.
Depositing funds is free of charge while withdrawal fees vary based on the cryptocurrency or underlying network. For instance Bitcoin (BTC) incurs a transaction fee of 0.0005 BTC per transaction.
If you make purchases using a credit card through Simplex they impose a 3.5% fee.
Make sure to refer to the exchanges schedule of fees and costs for information.
Regarding trading fees unverified accounts have a maker fee of 0.1% and a taker fee of 0.2%. Verified or VIP accounts enjoy reduced rates at 0% for makers and 0.04% for takers.
For margin trading activities on Poloniex there is a charge of 0.09%, per trade. Additionally keep in mind that margin funding incurs a fee which can impact costs—thus it's advisable to consider this aspect before opening leveraged positions.
In general the fees charged by these exchanges for crypto, to crypto trading are among the competitive in the industry. To get an understanding of how they stack up against cryptocurrency exchanges you can refer to our comprehensive review of the top players, in the field.
Final Thoughts
Few cryptocurrency exchanges have faced the kind of challenges that Poloniex did in its days and managed to establish a reputation, for being one of the safest platforms according to its users. Despite encountering a breach after its launch the exchange successfully recovered from this incident and gained immense popularity as a cryptocurrency trading platform offering various services like crypto margin trading and lending.
However it is worth noting that Poloniex is now operating in an environment. Therefore it is advisable to exercise caution and avoid keeping amounts of cryptocurrency assets on the exchange, for periods of time.
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