Visa Cryptocurrency Stock

Poloniex Review 2021

Poloniex Review 2021
Written by publishing team

Pros explained

  • Low fees for any trading volume: Poloniex’s highest fee tier starts at 0.155%, which is very low among cryptocurrency exchanges.
  • Available main and active trading platforms: You can use a simple buy form, an active trading platform, or connect to the Poloniex decentralized exchange using a compatible wallet.
  • More than 250 currencies supported: Buy and sell 272 different currencies at the current market price.


Cons explained

  • No advanced command types: In the active trading platform, you can enter buy and sell orders using only market parameters, limit or stop limit.
  • Weak support: Reports of mediocre customer support responses from current and former customers.
  • Hacked accounts history: Polniex was hacked in 2014, hackers stole about $4 million in Bitcoin – roughly 12% of the exchange’s assets.

Investing in cryptocurrency, decentralized finance (DeFi) and other initial coin offerings is fraught with risk and speculation, and the markets can be extremely volatile. Consult a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the author to invest in cryptocurrencies and the accuracy or timeliness of the information cannot be guaranteed.


an introduction

Poloniex would seem like an ideal cryptocurrency exchange for just about any investor. Low trading fees and a list of 272 cryptocurrencies make this platform an attractive option. It also offers margin trading products, cryptocurrency lending, and multiple trading platforms to buy and sell a long list of supported currencies.

However, Poloniex also has a mixed reputation. The site was hacked in 2014, losing $4 million in client assets held on the central exchange, or about 12% of the company’s holdings. It also receives poor marks for customer service.

If you trust Poloniex to keep your account and assets safe, it is a compelling platform worth considering.


Company Profile

Founded in 2014, Poloniex is a Boston-based cryptocurrency exchange and service provider. The exchange supports a long list of cryptocurrencies with very competitive trading fees. If your main priority is to trade a large number of digital currencies at low prices, then you will find what you are looking for with Poloniex.

Poloniex allows users to purchase cryptocurrency using a bank account, Visa, Mastercard, or Apple Pay. It also features trading platforms suitable for both novice and expert traders and works with decentralized financial products, including a decentralized exchange.

Despite the useful options and features in Poloniex, there are some drawbacks on the security and regulatory side. The site has poor customer service reviews. Most worryingly, it has been hacked and SEC regulatory action in the past. This may lead you to take a look at other crypto exchanges that offer better customer reviews and generally stronger security. As per the Poloniex client agreement, it is not available in the US.


Cryptocurrencies are available at Poloniex

Poloniex offers a long list of 272 cryptocurrencies and tokens. Noteworthy coins include Bitcoin, Ethereum, Solana, Stellar, Dogecoin, Shiba Inu, and more.

Users can also trade some volatile currencies such as Baby Dogecoin, Dogelon, and Dogs of Elon. There is a good mix of well-supported tokens and lesser known currencies. It is important to mention the exchange relationship with the TRON (TRX) coin. Owning and using Tron may qualify you for a reduced fee.


Trading experience

There are many platforms available on Poloniex which may be suitable for different levels of trading experience. Beginners should start with the simple buying and selling model, while experienced traders can jump into the active trading exchange.

Basic Cryptocurrency Exchange Model

If you are not a cryptocurrency expert or want to fund your Poloniex account with fiat currency, you can get started with Poloniex’s simple cryptocurrency exchange model. This form allows you to easily buy and sell currency using a bank account, debit card, or credit card.


Simple crypto buying form at Poloniex.

If you purchase with a debit or credit card, you’ll pay a 3.5% fee ($10 minimum) to the card’s processor, Simplex. You may also need to pay an additional spread fee.

Active trading platform

Poloniex’s active trading platform includes a chart with a number of indicators. You can also view recent trades, a summary of the book of pending and open orders, and a quick trading form.

Experienced traders with prior experience in cryptocurrency, stock trading or other active markets are likely to prefer the active trading platform.

mobile apps

Poloniex has apps available for iOS and Android devices. You can get the Apple version in the App Store, and the Android version listed on Google Play or offered as a direct download. The apps allow you to manage your account, view crypto balances, and trade supported currencies.


Outlay

You can qualify for lower costs if you pay for the exchange fee with Tron and have a Tron balance of at least $49.

Once your account is funded with cryptocurrency, fees are a major selling point for Poloniex over competitors. If you trade less than $50,000 per 30 days, the fee is 0.0145% for maker trades and 0.155% for take trades. You also get access to fee discounts if you pay with Tron. If you have enough Tron credit ($49 or more), you qualify for a lower fee category.


Poloniex trading fees as of 1/3/2022.

Other costs to consider include:

Payment method or payment Poloniex Fee
Bank account 0.5% + variable spreads
Debit / Credit Card 3.5% (Minimum $10) + Variable Spread Fee
futures trading 0.01% Maker / 0.075% Taker
Lending Fee 15%
Margin interest fee Differs


protection

Poloniex has been hacked in the past and was recently settled with the Securities and Exchange Commission. Proceed with caution.

Security is not Poloniex’s strong suit. While everything appears to have been raised to industry standards, the company has a history of security and regulatory problems.

The exchange was hacked in 2014, hackers stole nearly $4 million in assets. In response, the exchange reduced customer account balances by 12.3%. This is a serious problem and could be reason enough to avoid Poloniex. While the platform survived the crash, you may want to be careful when holding large balances with this exchange.

Poloniex has also cleared US securities regulators. Poloniex was accused by the Securities and Exchange Commission (SEC) of operating an unregistered digital asset exchange in August 2021, and Poloniex paid more than $10 million to settle with the SEC. While Poloniex’s problems may be in the past, that’s another red flag.


Open a Poloniex account

Poloniex operates a centralized exchange and a decentralized exchange. For the Central Exchange, which we review here, you will need an account. As mentioned above, Poloniex is only available to users outside the United States.

The Poloniex registration process is similar to other cryptocurrency exchanges. You’ll start by creating an account with your email address and a password.

To unlock all account features and higher limits, you need to complete a Level 1 and Level 2 verification process. Level 1 includes unlimited trading, unlimited deposits, and daily $10,000 withdrawals. Level 2 allows up to $500,000 in daily withdrawals, margin trading, and faster customer service if your account is locked out.

Requirements for Know Your Customer (KYC) verification include adding your contact information, a photo of your government ID, and a photo.


Customer service

Poloniex offers customer support primarily through email. Users can submit a basic contact form to open a customer support ticket. The exchange also provides a help section that answers common questions.

For the most part, Poloniex is a self-service platform where you take care of maintaining your own account. If you don’t feel comfortable searching for answers to questions using the help sections, you may prefer an exchange that offers more options for customer support.


customers satisfaction

Customer reviews are a weak point for Poloniex. The exchange has over 200 reviews on Trustpilot and an average rating of 1.5 out of five stars. Reviewers report issues such as lost money and poor customer service responses.

While Poloniex receives low scores from reviewers, it’s worth noting that poor customer support is an industry-wide issue. If your account is hacked or you accidentally send cryptocurrency to the wrong address, you are unlikely to get your money back regardless of the exchange.


Account management

Poloniex users can manage their accounts through the online control panel and mobile apps. You can use the account dashboard to navigate through the account settings and basic account features, including the trading platform, futures trading and lending.

Anyone with experience using online stock brokerage or online banking should have no problem navigating the Poloniex dashboard and apps.


How does Poloniex compare to other cryptocurrency companies

When compared to other cryptocurrency exchanges, Poloniex offers low fees and a large number of cryptocurrencies. However, you may prefer an exchange with a stronger reputation and history.

Poloniex vs. Queen Piece

  • Poloniex fees are only 0.145% or 0.155% at the highest level. Coinbase fees start at 0.50%, plus the spread.
  • Poloniex features lending, margin, and futures trading products, while Coinbase only offers spot trading at current market rates.
  • Coinbase has a better reputation for security and regulatory compliance.
  • Coinbase is available for users in the US, while Poloniex is not.

In the end, no cryptocurrency exchange is perfect for everyone. That’s why it’s so important to spend the time understanding the features that are most important to you. Also, consider shopping for the lowest fees and the best account security features.

Read the full Coinbase review.

Final verdict

Poloniex offers low costs and an extensive list of cryptocurrencies, including some that are well-developed and little-known ones. Despite this, there are some security and regulatory questions of concern. It is also not available in some countries.

If you are considering opening an account with Poloniex, research what the exchange offers to help determine if it is a good fit for your crypto goals and needs.


methodology

Investopedia is dedicated to helping those interested in investing in cryptocurrency make informed and secure decisions. We are committed to providing our readers with unbiased reviews of the best cryptocurrency exchanges for investors of all levels.

Exchanges are only considered for review if they are safe, secure, liquid and either regulated by an appropriate agency or fully decentralized.


Investopedia requires writers to use primary sources to support their work. These include white papers, government statements, original reports, and interviews with industry experts. We also refer to original research from other reputable publishers where appropriate. You can learn more about the standards we use to produce accurate and unbiased content in our editorial policy.

  1. Poloniex. Fee Schedule. Accessed January 3, 2022.

  2. CoinMarketCap. “The Most Important Cryptocurrency Spot Exchange.” accessed. January 3, 2022.

  3. Coindisk. UK cryptocurrency exchange EXMO says $4 million of funds hacked were through Poloniex. Accessed January 3, 2022.

  4. Poloniex. Poloniex: User Agreement. Accessed January 3, 2022.

  5. Poloniex. Listed Assets. Accessed January 3, 2022.

  6. Poloniex. “Crypto Asset Exchange.” Accessed January 3, 2022.

  7. US Securities and Exchange Commission. “The Securities and Exchange Commission is charging Poloniex for operating an unregistered digital asset exchange.” Accessed January 3, 2022.

  8. Poloniex. “Level 1 vs. Level 2 Verification Features.” Accessed January 3, 2022.

  9. Trustpilot. Poloniex. Accessed January 3, 2022.

  10. Queen Piece. What are the fees for Coinbase Pro? Accessed January 3, 2022.


About the author

publishing team