Finding a trusted and reputable cryptocurrency platform to trade digital assets can be a difficult task with so many options available. In this review, we examine the Poloniex platform which used to be a popular exchange. We will assess and compare its features, supported assets, fees, security and customer service with the top exchanges for crypto.
Poloniex is a long-running cryptocurrency exchange that has been the trading platform of choice for altcoin investors. Since the exchange was founded in 2014, Poloniex has introduced a variety of products such as margin trading, futures and lending services. With an intuitive and modern user interface, Poloniex is an improved exchange that is suitable for all types of traders.
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What Is Poloniex?
Poloniex is a popular exchange that was founded in 2014 and headquartered in Seychelles. Since its inception in the market, Poloniex has become a reliable platform for traders to speculate on spot, margin and futures markets. The trading platform is known for deep liquidity across its supported assets.
There are more than 232 coins listed that can be traded. At the time of writing, Poloniex is the 15th largest crypto exchange in terms of trading volume with over 450 Million transacted in the last 24 hours.
In 2019, The Tron Foundation which is owned by Justin Sun invested $100 Million into Poloniex and launched an Initial Exchange Offering (IEO) to further develop the platform. A new platform called LaunchBase was launched that includes stablecoin lending and uses the TRX token of the Tron ecosystem to reduce trading fees.
Is Poloniex Safe?
Since the Poloniex exchange hack in 2014 that resulted in losing about 12.3% of its total Bitcoin holdings, the exchange has not been involved in any major security incidents. The Poloniex website states it prioritizes a secure platform with industry-leading security and stability, however, the exact measures are not clearly mentioned.
Poloniex has a reserve fund in the unlikely event of an exchange hack and 2 Factor Authentication (2FA) login, API's and withdrawal requests. However, without clear information on other protection measures, it's difficult to 100% trust Poloniex given the previous hacking incident.
Poloniex is a well-rounded centralized exchange for trading digital currencies. The platform features an improved user interface, a wide selection of coins to trade and advanced orders. Combined with margin and crypto lending, Poloniex is a great exchange for all types of traders.
|Markets||Spot, margin & futures|
|Fiat Currency||USD, EUR, AUD & 45 others|
|Trading Fees||0.145% / 0.155%|
|Advanced Orders||Limit & stop-limit|
|Mobile App||Yes (Android & iOS)|
Is Poloniex Legit?
Poloniex has been operating as a digital currency exchange since 2014. However, on August 9, 2019, the exchange was fined $10 million by the SEC for operating an unregulated trading platform for US customers between July 2017 and November 2019 without a licence or valid exception. US customers have since been banned from using the exchange.
Poloniex is popular for trading 232 cryptocurrencies on a robust and stable platform. Other exchanges similar to Poloniex that are credible for spot, margin and Futures trading with reasonable liquidity are listed below as a comparison.
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|Up to $100 welcome bonus||Visit Binance||Binance Review|
|319||0.02% / 0.07%|
|5% off trading fees||Visit FTX||FTX Review|
|Up to 500 USDT in bonuses||Visit KuCoin||KuCoin Review|
|232||0.145% / 0.155%|
|None available at this time||Visit Poloniex||Poloniex Review|
Best Features on Poloniex
The previous charting platform on Poloniex was outdated and clunky. However, the team behind Poloniex has invested in the user experience and redesigned the charting and trading platform. The new interface is simple, clean and well laid out with the powerful Tradingview charts in the middle.
The visually appealing platform also has a good selection of tools, indicators and features to support various trading strategies. This is one of the best features on Poloniex and a significant upgrade from the old Poloniex.
Margin & Futures Trading
Poloniex has expanded its product offering to include a margin exchange and futures contracts for leveraged trading crypto. Margin trading allows traders to borrow funds to increase the size of the trading position. For higher leverage up to 100x, Poloniex has introduced Futures trading on Bitcoin, Ethereum, Tron and 5+ other crypto-assets with 0.01% maker and 0.075% taker fees. The availability of these markets adds flexibility for users to long or short a crypto asset to hedge against volatility or a downtrend without having to use a specialized derivatives platform.
Competitive Trading Fees
Trading fees are an important consideration for traders that want to buy and sell a particular cryptocurrency asset or market. The fees on Poloniex start from 0.145% to 0.155% for makers and takers. The trading fees can be reduced with higher trading volumes or holding Tron (TRX) tokens. For comparison, the table below shows a comparison of Poloniex's fees against the top crypto platforms.
|Exchange||Max. Trading Fee|
|Huobi Global||0.2% / 0.2%|
|Poloniex||0.145% / 0.155%|
|Kraken||0.16% / 0.26%|
Poloniex Lending feature allows individuals to borrow money from other users on the platform. The funds can be used to invest in cryptocurrencies on the spot exchange. In return, the lenders can earn interest on their crypto which is a viable way to make a passive income.
While there are advantages with borrowing funds directly on Poloniex to purchase cryptocurrencies given the volatile nature of the asset class, there is a 15% fee charged on the interest earned by lenders which is quite expensive.
Staking on Poloniex allows its users to earn staking rewards for holding digital currencies on the trading platform. The supported coins for staking include Cosmos, Tron, BitTorrent and WINK. The benefit of staking cryptocurrencies on Poloniex include no lock-up periods and the ability to withdraw funds at any time to use on the exchange. The staking rewards are within industry returns compared to the top staking platforms for crypto, however, the fees are a little high. For example, staking ATOM has a 25% fee.
Poloniex Troll Box
The infamous troll box on Poloniex allows traders on the platform to participate in a community to share trade ideas and thoughts. Often misused in the past for shilling altcoins, the trollbox can be a great source of information.
Is Poloniex Free?
To create an account with Poloniex, the process takes a few minutes. Users will be required to provide an email address and password. There is no cost involved to create a new account or maintain a wallet. There are some fees involved to use an account such as trading between assets and a blockchain network fee for withdrawing to an external wallet.
These fees are common for a centralized exchange to cover the companies expenses for providing the infrastructure to create a safe trading environment.
Poloniex Verification Levels
Poloniex users can start crypto-to-crypto trading without ID verification. There are 2 levels of verification with different withdrawal limits, margin requirements and leverage amounts on the Futures platform.
Users can access unlimited trading, unlimited deposits, $10,000 per day in withdrawals and lending with a valid email address and password. For higher limits up to $500,000 a day, a full Know Your Customer (KYC) process will need to be completed.
Altcoin traders can browse and select a wide variety of pairs to trade. There are 234 supported coins with pairings against BTC, TRX, ETH, BNB and several stablecoins. In total, there are 374 markets that can be traded on Poloniex which is comparable to the top trading platforms. Poloniex regularly adds new assets to its list of supported coins which is ideal for altcoin traders.
Volume & Liquidity
Poloniex is currently the 14th largest crypto spot exchange in the world by traffic, liquidity, trading volumes, and confidence in the legitimacy of trading volumes reported. At the time of writing, Poloniex has processed approximately USD 245 million in daily transaction volume over the last 24 hours. ELON/USDT, BTT/USDT and BTC/USDT accounting for nearly 40% of all transaction volume on the exchange.
The BTC/USDT trading pair on Poloniex has a liquidity score of 698 based on the slippage incurred by various order sizes. This is reasonable liquidity, however, the trading volume on ELON and BTT indicates the exchange is used for speculative trading and not the best option for Bitcoin/USDT trading by high net worth individuals.
In comparison, the trading volume and liquidity for BTC/USDT on KuCoin, FTX and Gate.io are 893, 824 and 792. Institutional and professional traders are better suited to these exchanges for high-volume trading with minimal price slippage filling large orders.
Trading With Poloniex
Selecting a cryptocurrency platform depends on the trading interface for many investors and traders. This is where the majority of time will be spent analyzing the charts and looking for trading opportunities.
User Interface & Charting
The user interface on Poloniex has been significantly overhauled within the last 24 months to improve the trading experience. The new layout is clean, visually appealing and responsive on all devices including tablet and mobile. In short, the modern user interface is suitable for beginners and advanced traders.
The supported assets are easy to find on the left which is organized by their trading pair (e.g. BTC, USDT and altcoins). The charts and order window is located in the middle with the order book next to the asset list. The user interface is not customizable to show and hide certain elements to suit the individual. There is a dark mode available which could be useful, however, users will need to modify their chart appearance each time they switch modes which is not ideal or practical.
Indicators & Drawing Tools
The Poloniex charting package is integrated with the popular TradingView charts which are renowned for providing excellent trading tools and charting features for crypto. The Tradingview features are hidden by default and need to be expanded each time.
There is a wide range of time frames and tools to draw trend lines, add indicators and chart patterns to perfectly time a trade. Examples of indicators that can be applied include:
- Simple Moving Averages
- Relative Strength Index (RSI)
- Bollinger Bands
- Average True Range
- Volume, Stochastics; and others.
Unlike other trading platforms, switching between trading pairs or logging out retains technical analysis on the charts. This includes overlays, lines and shapes that have been applied. This can be a major frustration for traders.
Poloniex supports limit and stop-limit orders. There is no button for a market order which should be avoided, however, a limit order at 'market price' can be entered by clicking on the last bid or ask price in the order book. Poloniex does not offer advanced orders such as stop-market, trailing stop, take-profit or stop-loss orders. In general, the ability to place orders and manage positions is sufficient for most traders however could be improved with additional order types.
The order book window is quite small but is fully intuitive to auto-fill entry prices to avoid mistakes by typing in the incorrect decimal place. The trade amount can be quickly populated using the auto-fill options (e.g. 25%, 50% or 75%) which is a default feature on most trading platforms. The trade fees are shown above the order window to check the maker and takers fees are correct based on the monthly trading volume amount or discounts for holding TRX tokens.
Poloniex has a starting fee of 0.1450% and 0.1550% for maker and taker orders. The trading fee can be reduced with higher trading volumes over a 30 day period or holding TRX tokens. Compared to other spot exchanges, the default trading fee is reasonable but not the cheapest in the industry. For example, the transaction fees on Binance, Crypto.com and Gemini are 0.1%, 0.2% and 0.5% respectively for buy and sell orders.
|Trading Volume (30 day)||Trading Fee (Maker / Taker)|
|< $50K||0.1450% / 0.1550%|
|$50K - $1M||0.1050% / 0.1200%|
|$1m - $10m||0.0700% / 0.1150%|
|$10m - $50m||0.0500% / 0.1100%|
|$50m+||0.0200% / 0.1000%|
To obtain cheaper trading fees less than Binance, users can hold TRX tokens for a discount on the transaction costs. Holding at least $49 worth of Tron within a Poloniex wallet offers a discounted fee of 0.0805% and 0.0875% for maker and taker orders. This is a relatively small amount of TRX tokens to hold to be eligible for a discount trading fee.
For margin and leveraged traders using the Futures platform, Poloniex has a flat trading fee of 0.01% and 0.075% for maker and taker orders. This does not include the margin interest fees for borrowing funds. While the fees are competitive, there are cheaper fee alternatives for leverage trading such as Bybit, PrimeXBT and BitMEX.
Poloniex Mobile App
Poloniex has a mobile trading app that is supported on iOS and Android devices. Based on customer feedback, the app has an average rating of 4.4/5 based on 6,670 reviews which is excellent. The app is intuitive, responsive and easy to use for beginners and advanced traders alike.
The majority of features available on the desktop version have been carried across to the app allowing users to deposit funds, trade crypto, monitor positions and withdraw funds at any time and place. Conducting technical analysis is quite difficult, however is the case with most crypto exchange apps.
Poloniex provides several support channels to get in touch with their customer service teams such as Twitter and Telegram and a live chatbot which can be useful. There is a comprehensive FAQ section on the website that covers a broad range of topics.
According to reputable websites, Poloniex has been rated poorly for its overall services and customer support with an average 1.5/5 star rating based on 217 reviews. The comments are recent and related to missing deposits, withdrawals and terrible customer service. Based on these reviews, we would recommend avoiding Poloniex and using a reputable crypto trading platform.
Frequently Asked Questions
According to the Poloniex User Agreement, residents from the USA are not allowed to use the services of Bitfinex. Individuals from the United States are strictly prohibited from creating an account and trade on the platform. Individuals will need to find a cryptocurrency exchange in the US that is licensed by FinCEN.
Poloniex Inc is a cryptocurrency exchange that was established in 2014. The companies head office is located in Wilmington, Delaware in the United States of America (USA). The exchange was acquired by the global internet finance company Circle, which is headquartered in the US.
Poloniex has significantly improved its user interface and trading platform. The supported assets and markets are impressive which include spot, margin and futures with reasonable liquidity. However, we do not recommend using Poloniex due to the repetitive negative feedback on review websites. In our opinion, there are better alternatives with similar features than Poloniex to use without having to take the risk of missing deposits or lost funds.