Poloniex review 2023: Security Concerns, Is it Safe?

Poloniex review
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With Poloniex you can buy, sell, and trade Bitcoin (BTC), Ethereum (ETH), and the best altcoins on the market. This Poloniex review is an up-to-date, detailed analysis of the Poloniex exchange, containing everything you need to know about Poloniex and whether it’s the right exchange for you.

Let’s find out!

Poloniex review

The Poloniex trading exchange was founded in January 2014 by Tristan D’Agosta and was originally headquartered in Delaware, i.e., a cryptocurrency trading exchange based in the United States. This Poloniex trading exchange was one of the world’s largest cryptocurrency exchanges, based in the United States. Soon after its launch, the platform was subjected to a cyberattack in 2014, which resulted in the loss of nearly 12% of its Bitcoin pool.

In addition to this loss, the platform bore the consequences and returned to the investors an amount equal to their lost Bitcoin investment. Later that year, it recovered from this setback and increased its trading volume by being the first to list Ethereum (ETH) on its trading exchange. Then, in the first quarter of 2018, Poloniex was acquired by M/s. Circle (a payments company) for nearly $4,000,000.

Following its acquisition, Circle transformed Poloniex into one of America’s first fully regulated cryptocurrency exchanges. As a result, Poloniex is one of the most popular and well-known US crypto exchanges, particularly among US investors, experienced traders, and new users. Its daily trading volume exceeds USD 100 million.

Furthermore, after experiencing another setback and some challenges in the form of Cryptocurrency CLAM crash details in early 2019 as a result of the uncertainty in the U.S. cryptocurrency regulatory environment; as a result, at the end of the same year, i.e.., in November 2019, the parent company M/s. Circle swirled out the strategy and switched Poloniex as an organization into a separate entity under Polo Digital Assets Ltd.

This newly formed company was officially registered in the archipelagic island country of the Republic of Seychelles, which is a remote island in the Pacific and is well known for its favorable crypto regulations, as well as being the home of other unregulated cryptocurrency exchanges such as BitMEX, Prime XBT, Binance, and others. Polo Digital Assets Limited, a newly formed entity, is Poloniex’s parent company.

Furthermore, an unnamed group of Asian investors, including TRON CEO Justin Sun, supported and funded the formation of this parent company. Circle used this strategy to avoid the challenges of being a US-regulated company/regulated international exchange and instead became a platform without verification and a fully unregulated exchange.

Poloniex review: What is Poloniex?

Poloniex Exchange may appear to be a perfect cryptocurrency exchange for almost any investor. This platform is appealing due to its low trading fees and selection of over 400 cryptocurrencies. It also provides margin trading products, cryptocurrency lending, and a variety of trading platforms for buying and selling the numerous supported currencies.

What is Poloniex

Poloniex review: Poloniex Pros and Cons

Pros

  • Poloniex bug bounty: Poloniex goes an extra mile to ensure the safety of the exchange and its users by integrating a bug bounty program that incentivizes cyber security researchers that finds ways in which the exchange can be exploited via a hack, bug etc.
  • Poloniex blog: Are you new to cryptocurrencies? Well, Poloniex has a blog filled with rich educational resources all for your consumption.
  • Perpetual contracts with 100x leverage: Trade perpetual contracts with up to 100x leverage on Bitcoin, Ethereum, TRON, and 8+ other crypto assets with Poloniex Futures.
  • Ability to earn: Let your crypto work for you. Hold TRON (TRX), Cosmos (ATOM), and more to receive regular rewards with the Poloniex simplified staking program.
  • Community: Poloniex has community members in socials like Facebook, reddit, twitter telegram and offers a variety of activities such as trading campaigns to compete against fellow traders and discuss all things crypto in its legendary TrollBox.

Cons

  • Not available in the US: Poloniex made an announcement that it will be shutting down US operations and no longer providing services to the US users. So US users are prohibited from accessing Poloniex exchange services.
  • Poor Customer Service: Poloniex exchange customer service system has amassed a pool of negative reviews from users.
  • Poloniex hack: Polniex was hacked in 2014 and the hackers made away with 12.3% of its coins, and again late in 2020, when hackers stole about $4 million in Bitcoin which is approximately 6% of Its assets as at the time.
  • Fees: While Poloniex has cheap trading fees, its fees for buying and selling crypto are more expensive. It partners with Simplex, a payment processor, for these transactions. To pay with a credit or debit card, Simplex charges a fee of 3.5% to 5% for this, with a $10 minimum, and Poloniex also charges its own 0.75% fee.

Poloniex review: How does Poloniex work

Poloniex, unlike other exchanges, is not equipped to handle cryptocurrency purchases and sales. It does, however, allow you to purchase some cryptocurrencies via a payment processing partner, Simplex. You can pay with a debit or credit card, but the fees are quite high.

Poloniex is a cryptocurrency trading platform that specializes in exchanging different types of cryptocurrency, such as Bitcoin for Ethereum. Poloniex has over 500 spot trading pairs, so you can make a variety of trades.

Users in supported countries can also use a Simplex bank account to buy and sell cryptocurrency. This payment method has lower transaction fees than card payments.

Poloniex also provides futures trading in addition to spot trading. Customers can trade perpetual swap contracts with up to 100x leverage on a variety of major cryptocurrencies. There is significant risk associated with crypto futures, but for investors interested, Poloniex is one of the exchanges that offers this feature.

How does Poloniex work

Poloniex review: How to use Poloniex

To gain access to Poloniex’s suite of products and services, you must first sign up, verify your identity, and then buy, sell, trade, and explore all of Poloniex.

Poloniex Sign up

Step 1

Visit Poloniex on their landing page and click on “Get Started” or “Sign up” at the top right corner. On the next page, fill in your email address and create a password, then, if you have a referral code (9B2JSJ3A), enter it in the referrer code field. 

Poloniex Sign up

Step 2

Now click on “Click to verify.” Pass the captcha, tick the box to agree that you’re 18 years of age, and click “Sign Up.”

How to use Poloniex

Step 3

Head to your Gmail address to confirm your sign-up. Open the email sent to you by Polonix and click on “Verify My Email.”

Step 4

Now you’ll be redirected to Poloniex. Click on “Continue to Log In.” You will now be prompted to log in to your account. Input your email and password, click on “Click to verify,” pass the captcha, and click on “Log in.” 

Note: Congratulations! You have successfully registered on Poloniex. Now a pop-up on the page will prompt you to enable the discount and pay less in trading fees.

Step 5

To enable your discount and start paying less to trade, click on “Enable 30% discount.” On the next page, head to the fee discounts section and toggle on “Get 30% off your fees when you pay with TRX.”

Step 6

To increase your options, unlock more features on Poloniex, and also enable margin trading, click on “Profile” on the navigation bar and click on “Get started.” This in turn will require you to verify your identity. 

Poloniex KYC

Step 1

Now make sure you fill in your correct details and click “Submit.” On the next page, click “Start” to commence the ID verification process.

Poloniex KYC

Step 2

Choose your country and select the ID type you’d like to upload. On the next page, you’ll be required to choose an upload method. Select “Continue on Mobile” on the next page, and input your email address. 

Step 3

A link will be sent to you to take a clear picture of the front and back of your selected ID type and upload it. 

Step 4 

Now, after successfully uploading your ID, you’ll be required to undergo face verification. Click on “Start” to commence. 

Note: Make sure your face fits perfectly into the oval provided to achieve a successful scan.

Step 5

Now head back to your PC and wait a few minutes for it to be verified. Then you can begin to deposit and explore all of Poloniex.

How to enable two-factor authentication on Poloniex 

Increase the security of your account by enabling TWO-FACTOR authentication (2FA).

Step 1

On the navigation bar, click on “2FA.” Download “Google Authenticator” if you don’t have it installed. Also, make sure you backup your 16-digit key or print a copy and keep it somewhere safe.

How to enable two-factor authentication on Poloniex 

Step 2

Open it, click on the + button at the bottom right corner, and select “Scan a QR code.” Then use your phone to scan the QR code, and immediately a 6-digit code will be sent to you with the name Poloniex and your Gmail attached, i.e., Poloniex (rahena56kalare@gmail.com). Copy it and input it into the code section.

Step 3

Now tick I have backed up my 16-digit key, and click on “Enable 2FA.” Now you have successfully enabled your 2FA. 

How to Deposit on Poloniex

You’ll learn how to deposit USD to Poloniex Exchange by following the steps below.

Step 1

In the top right panel of the page, select “Wallet” > “Deposit,” and then choose the coin you wish to deposit.

How to Deposit on Poloniex

Step 2

Select the network you wish to use to generate your deposit address/QR code.

Step 3

Copy your Poloniex deposit wallet address and/or additional payment ID/QR code.

Step 4

Enter your copied Poloniex deposit address or scan the QR code on the withdrawal page of your origin wallet or exchange.

How to Withdraw on Poloniex

With the below steps in this Poloniex review, you’ll understand how to withdraw from Poloniex.

Step 1

Make sure you’re logged into your account. Then click on the “Wallet” section at the top right of your screen.

Step 2

Click on “Withdraw” and select the asset you wish to withdraw. 

Step 3

Now select the network you wish to withdraw from.

Step 4

Enter the destination address, an additional payment ID, and the amount you wish to send.

Note: If you’d like to withdraw all your funds, you can click “Max Amount” to do this easily.

Step 5

Now click “Continue,” and review your withdrawal before finalizing it by clicking the “Withdraw Asset” button. 

Step 6

User confirmation is needed to complete the step.

How to Withdraw on Poloniex

Note: Customers with two-factor authentication enabled for their withdrawals do not receive email confirmations.

How to Buy on Poloniex

With our Poloniex review, you’ll understand how to buy crypto with your credit or debit card on Poloniex in just a few steps.

Step 1

On the Poloniex website, navigate to the top menu and select “Buy Crypto.”

Step 2

Determine how you want your card purchase to be denominated. Then choose from the list of cryptos you can purchase. 

Note: If your card is issued in another currency, you might incur an FX/international use charge from your bank.

Step 3

Choose the asset and amount of crypto you want to purchase – the fees and total charge will be displayed underneath.

Step 4

Adjust the amount of crypto you are interested in purchasing and proceed when you are ready.

Note: Make sure to read the important notes and disclaimers before proceeding. 

Step 5

Now you will be redirected to Simplex.com to input your card details and complete your purchase. 

Note: You are likely to be required to verify your identity during the Simplex checkout process, so make sure you have a valid form of ID ready.

Poloniex Supported Cryptocurrencies

Poloniex Exchange offers a wide selection of cryptocurrencies, amounting to over 400. This wide range of assets is available for buying, selling, and trading. Some of the most popular cryptos include: 

  • Aave (AAVE)
  • Basic Attention Token (BAT)
  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • BitTorrent (BTT)
  • Bytecoin (BCN)
  • Cosmos (ATOM)
  • Dogecoin (DOGE)
  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Frontier (FRONT)
  • FTX Token (FTT)
  • JUST (JST)
  • Litecoin (LTC)
  • Monero (XMR)
  • OmiseGO (OMG)
  • Polkadot (DOT)
  • Stellar (XLM)
  • Tendies (TEND)
  • Tether (USDT)
  • TRON (TRX)
  • Uniswap (UNI)
  • USDCoin (USDC)
  • WINk (WIN)
  • Zcash (ZEC)

Poloniex review: Poloniex Fees

When it comes to trading, Poloniex fees are among the lowest in the industry. Poloniex charges its users for placing spot and margin trades, as well as cryptocurrency withdrawals.

The Poloniex trading fee schedule is rather straightforward. The fee you pay per trade depends on whether you’re on the taker or maker side of the deal, as well as your 30-day trading volume. VIP customers that fall into Poloniex Plus Silver, Gold, or market maker tiers pay 0% for maker trades and less than 0.04% for executed taker orders.

Poloniex Fees
Source Poloniex

Poloniex Withdrawal Fees

Poloniex charges its users a withdrawal fee of approximately 0.0005 BTC per BTC – Withdrawal, which is way below the average industry withdrawal fee of approximately 0.0008 BTC per BTC – withdrawal.

Poloniex APP

Poloniex has apps for both iOS and Android devices. The Apple version is available in the App Store, while the Android version is available in Google Play or as a direct download. You can use the apps to manage your account, view your crypto balances, and trade supported currencies. The Poloniex app has a star rating of 3.9 with over 500k downloads. Below is a review from a user of the Poloniex exchange app.

Poloniex APP

Poloniex API

Poloniex provides APIs for interacting with the exchange via HTTP and WebSocket. Both provide public market data read access as well as private account read access. The private HTTP API provides private write access to your account.

The public HTTP endpoints are accessed through GET requests, whereas the private endpoints are accessed through HMAC-SHA256 signed POST requests with API keys. HTTP endpoints of both types return results in JSON format.

Push notifications about public market data and your private account are possible with the websocket API. For requests related to your private account, it requires HMAC-SHA256 signed requests using API keys, just like the HTTP API.

Poloniex also provides SDKs in a variety of languages that can be used to access HTTP and Websockets endpoints.

Poloniex review: Poloniex Restricted Countries

This Poloniex review displays a list of countries that cannot conduct services on the Poloniex exchange. They include:

  • Afghanistan
  • Burma
  • The Chinese Mainland
  • Crimea
  • Cuba
  • Democratic Republic of Congo
  • Iran
  • Iraq
  • Ivory Coast
  • Lebanon
  • Libya
  • Mali
  • North Korea
  • Palestine
  • Somalia
  • Sudan
  • Syrian Arab Republic
  • Yemen
  • Zimbabwe
  • The United States and all US Territories (such as American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and US Virgin Islands).

Poloniex Support

Clicking on the support button on its website takes you to a basic contact form to open a customer support ticket. Users can also get support through email. The exchange also offers a help section that answers frequently asked questions (FAQs), and you can also reach Poloniex customer service through Troll Box and via Twitter and other social media networks.

That aside, Poloniex has amassed a pool of mixed user reviews on Playstore and a 1.6 ⭐ rating out of 252 reviews on Trustpilot regarding its customer support system. Below is a review from a user of Poloniex exchange.

Poloniex Support

Poloniex review: Is Poloniex Safe?

Security is important and cannot be overstated. As seen above, Poloniex security raises concerns. While it appears everything has been brought up to industry standards, the company has a history of security and regulatory problems.

In 2014, the exchange was hacked, and hackers stole $4 million in assets. As a result of the exchange, customer account balances were reduced by 12.3%. This is a serious problem that should make you avoid Poloniex. Furthermore, it was hacked again in 2020.

Poloniex has also had run-ins with US securities regulators. The SEC charged Poloniex with operating an unregistered digital asset exchange in August 2021, and Poloniex paid the SEC more than $10 million to settle. Although Poloniex’s issues may have been resolved, this is yet another red flag.

While the platform survived these incidents, you should exercise caution if you have large balances with this exchange. Despite the security concerns, Poloniex is a compelling platform worth considering if you trust them to keep your account and assets secure.

It also has a bug bounty program that incentivizes cyber security researchers who find vulnerabilities and report them. Also, if a potential vulnerability is discovered, it should be reported here.

[WPSM_AC id=2177]


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