A Short Review of Poloniex
Posted on 13. January 2019 | By admin
Poloniex is a company based in the USA that offers the services of its crypto exchange from here. It relies on a high level of security and advanced trading functions. It recently became known that the large investment company Goldman Sachs is also involved in Poloniex. It seems that the platform has an interesting future. This makes it all the more important to review the offer and its character traits.
Advantages and Disadvantages
- Diverse trading functions
- Large crypto selection
- Important safety precautions
- Two factors verification
- Mobile website enables trading from on the go
- No Euro or Dollar usable
- Not that many languages supported
The fact that Poloniex offers a high level of security becomes clear very quickly after you have executed the first Poloniex login. You will immediately be asked to confirm all your data. This verification process therefore leads to a transparent structure as far as market participants are concerned. But you can also be sure that all information will be treated as strictly confidential by the group.
So this is where a data protection directive comes in. In order to protect your account even better, it is also advisable to use Two Factors Authentication if you want to access your personal Poloniex account. The principle is very simple. Finally, in addition to the user name and regular password, another code is requested, which is sent to the smartphone.
This does not work via e-mail or SMS, but in most cases via the Google Authenticator. To this extent, the appropriate application must first be set up and the personal Google account connected to the Poloniex account.
The application can be downloaded free of charge from the various stores. On the marketplace operator’s platform, you will then find a corresponding link that leads you to the information necessary for secure authentication.
You have the free choice whether you simply use the mobile application to scan a QR code or whether you prefer to type in the displayed access key manually. In any case you should make a note of this key and keep it safe. It can always happen that your smartphone gets lost or that a technical damage blocks the functions of the device.
In such a case, the key must be entered when you log in again. Otherwise, the user’s account remains blocked for security reasons. Directly on the start page, the provider gives you some hints that you are dealing with a secure offer. This is confirmed in so far as one encounters an SSL connection during the regular use of the web offer.
Nothing happens therefore on the platform without an appropriate coding of the data. In addition, there is no need to be very concerned about hacker attacks dedicated to the company itself. After all, the majority of customers’ credit balances are stored in so-called Cold Poloniex Wallets. This means that they rely on offline solutions and do not even have access to users’ digital coins.
Only a fraction of the total funds managed are connected to the network to enable regular day-to-day business. Such a combination of these security measures leads to an appealing Poloniex experience in the Poloniex test.
The fact that large companies such as Goldman Sachs now have their fingers in the pie is also evidence of the trustworthiness of the offer.
“Smile, please.” A photo is required to confirm identity
In order to gain access to the entire offer of the platform, one is first asked to verify one’s own data. This process is not a basic idea of the American platform, but is widespread in the industry to make sure that you are dealing with serious market participants. Money laundering can also be efficiently avoided in this way.
For example, you are asked to take a personal photo for identification purposes. Here the user must take a photo of himself, together with a hand-written note. Corresponding Poloniex instructions can be found directly in the company’s FAQs. It is important to note that both the user’s face and the note must be clearly recognizable.
In this way, the company can confirm the identity of the new customer. On the note should be written a keyword “Poloniex” and you should indicate the current date in the format month, day, year. Some users may be confused by such a confirmation, but it is actually very difficult for fraudsters to misuse a customer’s identity. The company’s employees are trained when it comes to confirming identities.
The pictures taken are then encrypted and stored offline. It is important that the note is clear and legible and that the entire image is sharp. If any important contents of the handwritten note are accidentally concealed, verification will be denied. The provider therefore attaches great importance to this security measure. Basically, the company relies on an automatic system for confirming customer information.
It is important that you get some hints that can speed up the process. And so the complete legal first and last name of the customer is required. The current complete address is also queried. It is certainly a good idea to keep an eye on your personal account. If there should have been problems with the verification, then one will be informed about this by the enterprise.
In the own profile one can see then the error message and complete a correction of the misdemeanours. If you are repeatedly unable to successfully verify your data, even though you are sure that all information is correct and the photo meets all requirements, you can create a Poloniex Support Ticket and contact Customer Service directly.
However, this should only be necessary in the rarest cases. Nevertheless, it is good to know that you can have the help of your staff if you need it. All in all, the verification should be completed quite quickly. It is best to prepare the necessary documents directly after the first registration and take the requested photo.
Four markets are the starting point for all kinds of currency pairs
Poloniex is a swap exchange which concentrates exclusively on crypto values. If you are looking for Euro or Dollar at Poloniex, you won’t find it and so you have to have Crypto Currencies before you can dedicate yourself to the offer. This is certainly of great importance, especially for those users who are only at the beginning of their digital trading activity.
The individual Poloniex coins must therefore first be purchased in other ways before they can be used on the online platform. Theoretically, a coin such as Bitcoin is sufficient to gain access to the other currencies.
The provider has four different markets, which form the starting point for the existing currency pairs. This is how Poloniex Bitcoin, Ethereum, Monero and Tether can be traded.
If you click on the corresponding overviews on the stock exchange platform, however, you will see that there are many other Internet coins that can be offset against the aforementioned values.
Well-known representatives here are Ripple, Litecoin, Stellar, Bitcoin Cash, Dash, Doge Coin and Co. However, there are differences between the base currencies and so one cannot use all currencies for Ethereum, which one finds for example for Bitcoin.
Therefore, it is a good idea to inform in advance about the existing possibilities. Especially the industry leader Bitcoin has some digital values that can be bought or sold here.
The corresponding overview can be found directly on the homepage of the Exchanges. By the way, here you can already act without a real Poloniex login and have a look around. This way you can find the markets, see notes, see how the buy and sell fields are structured and how the stop/limit procedure works.
Furthermore you can see order books and even charts and current prices. Finally you get a pleasant overview of the existing trade history. The company is therefore transparent. If you consider that the offer can only be used if you already have digital currencies, then you will come across a variety of possibilities.
In any case, the operator of the platform is informative and reports on current rates and also on how to actually trade. Further information and Poloniex instructions can be found on the FAQ pages of the Poloniex support section. The offer is designed for those users who have a precise idea of their trading activities.
Before you register, you should ask yourself whether you can find the currency pairs you are looking for or whether you would like to use a Poloniex alternative that also allows you to buy and sell certain crypto currencies with real money. The fact that the Poloniex platform does not accept Euro and Dollar is well known. However, Poloniex offers Twitter as a communication channel and thus shows a modern orientation.
Makers pay less on the platform
Of course, the American platform also raises the question of whether there are any Poloniex fees for the Poloniex experience or for the use of the Poloniex Wallets. Of course, it is certain that the group will have to finance itself in one way or another. A model commonly used in the market is used here, which takes both the trading volume of the customer and the trader characteristics into account.
And so a distinction is made between makers and takers. On the other hand, you don’t have to reckon with any fees if you want to deposit on Poloniex. When paying out, however, it should be noted that a transaction fee is charged which is completely independent of the operator of the platform. Here it depends simply on the respective network which is to be used.
- This then charges the fees which are necessary to maintain the system. Insofar these costs are merely passed on by the platform. In order to get an exact overview of the resulting payments, one can make use of a corresponding overview directly on the website.
- Here the difference between the so-called makers and takers is explained: A simple trade is always concluded between two parties, the maker who writes the order into the order book and thus leads to more available trading opportunities and the taker who accepts the offer and thus removes an order from the trading book.
- Makers lead to more liquidity in the market and are therefore rewarded with cheaper price models. This creates a lot of activity in the market, as the various makers naturally push the button on each other when it comes to better offers. However, takers have the advantage that they get to the desired trades faster because they do not have to wait for a suitable offer. Every 24 hours, the group calculates the user’s trade volume in the last 30 days.
If you have traded under 600 Bitcoins, which should be the case for most ordinary traders, then a Maker Fee of 15% will apply and Poloniex fees of 0.25% for Takers. If you become particularly active and have a high trading volume, you can even reduce your maker costs to 0%, or 0.05% if you are a taker. One can also lend money, then 15% is added to the earned interest. It is really to be welcomed that the provider is practising extraordinary transparency.
It does not take long to see the necessary information on the costs incurred. Of course, this is customer-friendly and leads to the fact that, in principle, you can always see what payments you have to expect to be made to the company. This is a clear sign of seriousness and credibility. It is advisable to take a closer look at the FAQs of the platform. Finally, any questions regarding the use of the website and the potential costs will also be answered here.
Summary of the test report
Poloniex can therefore convince by its manifold possibilities. In addition to regular currency exchange, you also get access to lending and margin trading. You may already have explored the Poloniex Twitter account. Here, the company will treat itself to an attractive communication channel. To be able to deposit with Poloniex, you should first verify your personal data. This serves the security and corresponds to the further impressions in the offer.
There are basically four different Poloniex Coins, but they can lead to all kinds of currency pairs. So the best thing to do is to examine the possibilities on the platform. This is even possible without a login. However, you should keep in mind that German has not yet found its way onto Poloniex. Nevertheless, after a Poloniex test you have to emphasize positive impressions. This is certainly a strong competitor in the market.
A more detailed review can be found at bestbitcoinexchange.