Poloniex review 2022. Is it safe to use?

This is Poloniex review.

Poloniex is a cryptocurrency exchange with a focus on the US market. It has been in operation since 2014, and it is one of the most well-established exchanges.

Poloniex has a total of over one million registered users, making it one of the large exchanges in the world although it is no longer as popular as it used to be.

The exchange supports multiple cryptocurrencies and fiat currencies, including Bitcoin (BTC), Ethereum (ETH), Monero (XMR), Dogecoin (DOGE) and Tether (USDT).

In this article, we will review the Poloniex exchange, discussing its fees, features, and security. 

What is Poloniex?

Poloniex is an American cryptocurrency exchange operated by Circle Internet Financial Limited Company based in Delaware, USA. It allows users to trade digital assets against each other or against USDT (Tether).

  • Poloniex review

Poloniex was launched in 2014 by Tristan D’Agosta, Rami Kawach and Michael Oved as a peer-to-peer crypto exchange that allowed users to trade directly with each other without using a central escrow account as Coinbase does. 

In 2015, Poloniex closed its doors to new registrations due to overwhelming demand which caused performance issues for existing users. The company re-opened registration in 2016 after upgrading its servers and moving them closer to its headquarters in Boston, Massachusetts.

Poloniex is a very reputable exchange with more than 700 coins listed on its platform. The exchange allows users to trade between BTC and various other cryptocurrencies including ETH, LTC, XRP, ZEC, ETC, BCH and many others. The exchange also supports margin trading and offers some of the best crypto-to-crypto rates in the market.

However, Poloniex has been criticized for not being transparent enough with its operations and policies. The exchange’s website does not provide much information about its team members or about any plans for the future development of the platform. 

This lack of transparency makes it difficult for investors to understand how their funds are managed by the company and what measures they take to protect them from theft or loss due to hacking attacks or other technical problems that may arise with the system during normal operations or downtime periods due to maintenance work or upgrades on servers etcetera.

Poloniex Review: Trading Fees

Poloniex has a very low fee structure, but it is not the cheapest exchange. Poloniex charges 0.25% per trade, which is a little bit higher than some exchanges. The good thing about this is that you do not need to make more than 100 trades per month to become eligible for the 0% fee discount. If you make over 100 transactions per month, you will get a 0.1% discount on your trading fees. This can be increased to 0.25% if you make over 300 transactions each month.

This means that if you trade on Poloniex every day, then you would only have to pay 0.05% overall in fees each month! This makes it one of the most affordable exchanges out there when compared with other exchanges that charge higher fees like Bitfinex or Coinbase Pro (GDAX).

There are no deposit fees on Poloniex, though there are withdrawal fees that vary depending on the cryptocurrency being withdrawn. The standard withdrawal fee for Bitcoin is 0.0008 BTC, while Litecoin withdrawal fees are 0.002 LTC, Dash withdrawal fees are 0.01 DASH and Ether withdrawal fees are 0.02 ETH.

Poloniex Review: Security, Privacy and Customer Support

Security 

Poloniex has been around since 2014 and has always had a reputation for being secure. However, in 2017 there were several cases of users losing funds due to some technical issues with the site. 

In one case, a user was able to withdraw more bitcoin than he should have been able to because the system did not recognize his account as being verified yet (this is normally required in order to withdraw larger amounts). Once he realized what had happened, he quickly moved his funds out of Poloniex and into another wallet where they could not be accessed anymore by anyone else. 

In another instance, around $50 million worth of bitcoin was stolen from Poloniex wallets due to an unknown vulnerability in its codebase. The exchange then froze withdrawals temporarily until it was confident that no other accounts would be compromised in the same way again.

The company has introduced the following security features to protect its users’ funds: 

Cold storage – 98% of all funds are held offline in cold storage, which makes it impossible for hackers to access them. Hot wallets are used for emergency withdrawals only. 

Two-factor authentication (2FA) – you can choose from several types of 2FA: Google Authenticator app or SMS code via Telegram messenger are two options available on Poloniex.

Privacy

Poloniex has a pretty good privacy policy, which means that you can use it anonymously if you want to.

Poloniex does not require to Know Your Customer (KYC) information when you sign up for their services. They also do not require AML identification verification when making deposits into your account or withdrawing money from it. 

However, they do require KYC if you want to trade on their platform using fiat currency like USD or EUR (this is called an “enhanced verification”). If you want to make any withdrawals over $2 million worth of assets from your account.

Customer Support 

Customer support is one of the most important parts of any platform or service. This is because you need to be able to get help when you need it.

Poloniex offers good customer support. The site is not very user friendly and can be difficult to navigate, but Poloniex provides users with a support centre containing answers to frequently asked questions. 

There are a few different ways to contact customer support on Poloniex. You can leave a message in their public chat room, or you can use the ticket system.

The ticket system is pretty basic and does not offer any sort of live chat feature. It does not even give you a way to send an email directly to customer support, although they do have an email address listed on their site.

Poloniex’s customer support team is available 24/7 via email and live chat, which is great. However, they aren’t very responsive, and it can take days or weeks for your issue to be resolved.

Poloniex features

Poloniex offers a wide selection of digital currencies and tools for trading them. 

Here are some of its most important features: 

A variety of cryptocurrencies – Poloniex has one of the most extensive selections of cryptocurrencies available on any trading platform. The site lists more than 100 coins, including Bitcoin, Ethereum, Monero, Dash, etc.

Margin trading – This feature allows users to borrow money from the exchange in order to trade on margin with leverage. The interest rate charged by Poloniex varies depending on which currency is being traded, but it can be as low as 0% or go up to 12%. 

Multiple order types – There are many different order types available on Poloniex, including limit orders, market orders and stop-limit orders. These allow you to specify how much profit or loss you want when placing trades on an asset.

Stop-loss orders – A stop order is an order that gets triggered when an asset’s price reaches a specified point (the stop price). This feature works similarly to a limit order except that it does not have an expiration time attached to it (as opposed to limit orders which have an expiration time). You can use stop-loss orders to protect yourself from losses if the price of an asset drops below what you predetermined. 

Flexible funding options – You can fund your account using any major credit card or debit card. You can also transfer funds from your bank account directly into your account

Low Fees – When compared to other exchanges such as Binance or Bittrex, Poloniex charges lower fees for both takers and makers on its platform. You pay 0% if you are buying or selling tokens while if you are placing limit orders then you will be charged a 0.25% fee for every trade that gets executed against your order.

Pros & Cons of Poloniex 

Pros

High Liquidity: Trade with up to 100x leverage on some coins or 10x leverage on others. You can minimize risk by limiting your margin trades. 

Good Customer Support: Poloniex has been around since 2014 and has built a reputation for providing top-notch customer service. If you ever have an issue with an order or anything else on the platform, they will help you out with it.

Cons

The biggest con is that it has a very poor interface, and this can make it difficult to use. The second problem is that it has a lot of restrictions on withdrawals; you need to submit identity documents before you can withdraw any funds. This means that if you don’t have time to get the documents in order, you will be locked out of your account for months.

There are also reports of people having issues with their transaction history. The site might show a withdrawal as being processed when actually nothing happened. In such cases, users will have to contact support in order to get the issue resolved.

Is Poloniex Safe?

There are no official statements about how secure Poloniex is, but there have been several issues reported by users in the past few years. 

Some users reported that their accounts were hacked and some people even had money stolen from them.

So if you are going to use this exchange platform, make sure your account is protected with two-factor authentication (2FA) and do not share your password with anyone else.

Conclusion 

Like most other exchanges, Poloniex has its pros and cons for both the trader and the investor.

My sense so far is that Poloniex is a very solid exchange. The platform has been around for some time and demonstrated its ability to keep things up and running.

You can also check our reviews on Okex and KuCoin.

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