Introduction to Poloniex
In your search for a reliable cryptocurrency trading platform, it is likely that you will come across Poloniex in your research. Established a few years ago, this U.S.-based trader has proven to be a strong platform in the ever-complex world of cryptocurrencies and trading. If you look into reviews and similar information, you will find a number of positive reviews of this business. They have worked hard over the past years to establish themselves as one of the strongest contenders for your time and money. In other words, if you are new to the world of trading, this is going to be a platform at least worth a look on your part.
At the same time, there are some potential red flags to consider. When looking for platforms for cryptocurrency trading, or any other type of online trading, it is important to keep safety in mind at all times. This includes the ability to withdraw your money in a straightforward fashion, with plenty of different payment methods, combined with good customer service. On this crucial front, Poloniex has received a few criticisms from customers over the years. Naturally, as we take a look at the features, pros, cons, and pricing of Poloniex, we will also keep such criticisms in mind.
In terms of the history of Poloniex, there are a few things to keep in mind.
Established in 2014, there is no question that Poloniex got off to a rough start. An unremarkable company in many ways, it took a year or two of surviving an unpredictable market for the trading platform to find a foot holding on the market. Operating from the United States, the company survived a minor security breach some years ago, which may be where some of the bad reviews came from. As the company survived this incident, a massive rehaul of their infrastructure was carried out. This gave the company a considerable makeover, which in turn allowed them to begin to dominate. There is no question that they have come a long way in the past 5 years and counting.
Furthermore, in the summer of 2016, Poloniex succeeded in registering with the Financial Crimes Enforcement Network, which is also known as FinCEN. They are now officially registered as a Money Service Business, or MSB.
While it is difficult to find concrete information on the background of those started this company, or where in the United States the official headquarters is located, it is nonetheless true that Poloniex is popular with many longtime traders of cryptocurrency. There are a number of reasons why this seems to be the case. We can explore those things in greater detail with a closer look at the pros and cons of Poloniex. What you will ultimately want to do, if you are a newcomer to this type of trading, is determine whether or not the company is going to be a good fit for your needs.
Many have praised Poloniex for a robust array of supported currencies, combined with good customer service and useful resources. There are also mobile apps for both Android and iOS users, and both have been well-reviewed by a variety of traders from a variety of backgrounds. You will also want to keep in mind that more than ninety trading pairs are being offered at present. There are some third-party options that utilize the Poloniex API, but experts agree that you should avoid these options at all costs.
It is worth noting that Poloniex has a number of interesting features. An early listing of a new project is just one example of what we are talking about. You will also want to take note of early listings for both airdrops and forks. The company also boasts a generous collection of research materials and informational resources. A newcomer to Bitcoin and the like can certainly learn the basics and beyond with this platform.
On the other hand, while many praise Poloniex for offering a variety of cryptocurrencies, a range of options to use their platform, and more, there are some potential negatives that should be explored. Other traders have called them a disreputable group that will, at best, make it extremely difficult to get your money out. Let’s dig deeper into both ends of this subject of the pros and cons of Poloniex.
Far and away one of Poloniex’s biggest benefits will be the deep inventory of supported cryptocurrencies. In addition to the currencies themselves, Poloniex also supports various types of pairings. The list currently includes BTC pairing, USDT pairing, and ETH pairing. Among the various coins you can check out at Poloniex are Stellar, Bitcoin, XRP, Litecoin, Monero, Steem, and many others. If you want to work with a number of cryptocurrency options right out of the gate, it is easy to see how Poloniex will be able to accommodate that without any trouble.
Poloniex prides themselves on working with the latest coins. To that end, they are an ideal stopping point for anyone who wants to see what’s trending in the world of cryptocurrency. Serious traders will also appreciate the fact that Poloniex offers some of the most detail-orientated charts to be found anywhere. Those who want to take advantage of comprehensive data analysis tools will also find a lot to enjoy here.
With over 120 digital assets being supported, there is no question this platform can keep you busy for a very long time to come. Also interesting is that most of the code for the trading interface is executed from the client side. This means hardcore enthusiasts can explore its open source potential. This isn’t something we recommend for newcomers, but it is worth keeping in mind all the same.
Low crypto deposits and withdrawal fees are also bound to impress you.
Finally, it is also worth noting that the company addresses the security breach a couple of years ago. They have also worked to step up their presence on social media. These are just a few of the reasons to explain the popularity of this platform.
Let’s address the biggest potential red flag of them all. Poloniex has been criticized and accused on occasion of making it difficult, if not impossible, for individuals to withdraw their money in a straightforward fashion. These are unconfirmed reports, but they are worth keeping in mind all the same. Some users have reported not being able to withdraw their funds at all. Others have stated that they were able to get their money, but only after sending numerous messages to Poloniex customer service.
Most cryptocurrency platforms have been accused of such practices at one time or another. The number of such complaints against Poloniex is not significantly higher than other platforms. One could make the argument that it is roughly the norm. You are naturally free to research these accusations in greater detail. You just won’t find much. In fact, it is very difficult to find any sort of serious information on the background of the company, its managers and agents, or any investors associated with the platform. This can all be combined to create a rather glaring red flag. All of this should certainly be kept in mind. The lack of physical offices is something else you are going to want to keep in mind.
Finally, we should also talk about their customer service. This is where even the best reviews of Poloniex are apt to have some issues. The ticketing system used for customer support is extremely poor, to put it mildly. The system does not seem to be run in any specific fashion that we can determine. We cannot tell you how long it is going to be, before you even hear back from someone. Poloniex also doesn’t have the best reputation where it concerns managing customer concerns in an efficient, pleasing fashion. Some reviews have simply described the customer service as average.
Given the enormous importance of reliability in cryptocurrency trading, this is definitely something you are going to want to keep in mind.
As Poloniex only works with crypto withdrawals and deposits, the fees associated with the platform are minimal and quite transparent. Because of this, it is indeed one of the most affordable exchanges to be found anywhere. Traditional deposit methods tend to be more expensive, which is due to the fact that they require additional regulations, vetting considerations, and fees.
Maker fees fall somewhere between 0 and 0.15%. For taker fees, you can expect a figure somewhere between 0.05% and 0.25%.
With a solid interface and a fairly impressive backstory, Poloniex is definitely going to come up in your research. Our suggestion is to take what they offer with a grain of salt. This can be a good place to explore and understand what cryptocurrency has to offer. At the same time, with some of the more troubling red flags in consideration, we cannot suggest this platform as your sole cryptocurrency destination. Our advice would be to keep things simple here if you plan to become a member and to look for a more reliable source for bigger opportunities.
David is a financial expert who graduated from the University of Fordham (Master in Finance) in 2001. He has 10+ years of experience in private equity and wealth management. With strong expertise in senior-level financial planning, personal financial analysis, and mortgages, David knows his way around personal finance. Before working at CCR he used to be a financial analyst at McKinsey.
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