Poloniex: Part 1

Introduction

The exchange facilities are like the gateways to connect to the traditional market, it also serves as an investment platform for many. It also facilitates the exchange of one crypto to the other and also with the fiat.

We have a plethora of exchanges in the crypto sphere, the competition has gone up, and the trading fee has become competitive as a result.

Although the definition of the best exchange is defined by the immediate requirement & priorities of the user, the general definition of the best exchange is attributed to its competitive exchange fees, better liquidity, wide selection of crypto assets and pairs, security, competitive crypto withdrawal fees, etc.

Today I will introduce you to Poloniex exchange facility, which serves as a platform for both the very basic trading experience and advance trading-- offering futures trading, lending, etc. Further, it also allows users to buy crypto with a debit/credit card.

In the ongoing #poloniexspotlight, I will cover the detailed use-cases of this exchange facility. Today as an introduction to this exchange platform, I will cover its features and how to get started with this exchange facility.

Poloniex

Poloniex is an early adopter of cryptos, serving as an exchange facility since 2014. It offers order book model crypto to crypto trading. It also enables users to buy crypto with a Debit/Credit Card. The payment processing partner for buying crypto with Card is Simplex.

Enabling users to buy crypto with cards connect to the traditional players of the legacy financial ecosystem, thus creates room to attract newcomers to adopt crypto.

Poloniex pioneers as one of the best exchange facilities by lowering the barrier to entry, allowing users to pass Level 1 with just an email ID and password, it does not even require your full name and address. A user with Level 1 can withdraw up to $10,000/day.

Level 1
Requirement- Only an Email Address

Features- Unlimited Deposit of assets, Card purchases, Lending, Futures(10X leverage), Withdrawal up to 10000 USD/day

^{Note- Buying crypto with Cards involves third party payment solutions like Simplex, and they might ask for Identity Verification.}

Level 2
Requirement- Complete Profile Information such as Name, Address, Date of Birth, Mobile Number, etc and ID Verification.

Features- Unlimited Deposit of assets, Card purchases, Lending, Margin Trading, Futures(100X leverage), withdrawal up to $500,000/day, etc.

The number of listed cryptocurrencies in Poloniex is more than 100, including the majors like BTC, ETH, LTC, TRX, EOS, XRP, BNB, USDT, etc. To know the detailed list of supported cryptos in Poloniex Exchange, click here.

The beauty of Poloniex is that it also offers a wide list of base currency-- TRX, BTC, Alts(ETH, BNB), Stablecoins(USDT, USDJ, DAI, PAX, USDC, BUSD). Such a structure gives more flexibility and also saves time, saves additional fees, as the trader does not need to go for a 2-fold or 3-fold exchange to realize a target currency.

The trading volume in Poloniex is also quite impressive, one of the top 20 in the exchanges list with the highest 24 hour trading volume. The most recent stat(as of 2nd Nov 2020) shows the 24-hour trading volume is 54.03 million USD and it is currently ranked 18th.

Source

The latest performance test at observatory villa by Mozilla shows that the security grade of Poloniex stands at B-, which is an above-average security score. You can perform the security test at Observatory by Mozilla-- https://observatory.mozilla.org/.

Poloniex allows users to buy crypto with fiat. The minimum amount to buy cryptos with Card is $50 and the maximum daily purchase limit is $20,000. The maximum monthly purchase limit is $50,000.

Fee Schedule

Source

At the very basic level, the Maker/Taker fee is 0.09%(below 50K trading volume, monthly), as the monthly trading volume exceeds 50K, the fees get lower, become even more competitive & the market maker fees become zero with 50 million monthly trading volume. So there are different slabs of monthly trading volume and based on that you can enjoy lower trading fees.

Even if the basic level 0.09% trading fee is considered, it much lower than the industry average, even lower than the giant exchange like Binance.

Further, for crypto withdrawal, there is a fixed fee for each crypto asset. For example, for BTC it is 0.0005 BTC, the TRX withdrawal fee is 0.01 TRX.

If you pay the trading fees with your TRX Balance, then you will get a 25% discount on your trading fees. For that, you need to send your TRX to the Poloniex wallet.

Getting started with Poloniex

• Go to https://poloniex.com/. Click on "Sign Up".

• Enter the Email ID, Set Password, Confirm Password(Make sure that the password is at least 8 characters long). Click on the Checkbox to agree to the "terms, policy, e-sign consent".

• Click on "Sign Up".

• Then go to your email account and check your inbox, you will find an email from Poloniex, asking you to Activate your account. You can simply click on Verify Email to activate your account.

• Now you are done, Now you can log in to your account using the email address and the password set by you during registration.

• Once you logged in, click on "Setting". You will find that your profile is now Level1 Verified, and your withdrawal limit per day is $10,000 USD/day.

Enable 2 FA

It is highly recommended to enable 2FA(2-Factor-Authentication) as an extra security layer to your account.

• To enable 2FA, Go to your "Setting", then click on "2FA".
• Now write down(or print) the 16-digit key and keep them in a safe place.
• Scan the QR code of this 16-digit key with Google Authenticator(assuming you have already downloaded and installed Google Authenticator). Now you will keep getting the dynamic 6 digit code in your Google Authenticator.
• Enter the password(of your Poloniex account) and enter the code, check the box and then click on Enable 2FA.

How do I deposit STEEM in Poloniex?

• Go to Wallet(Assuming you are already logged in Poloniex). Click on Deposit.
• Type STEEM in the search box, then STEEM will be sorted. Click on it.
• Then click on Deposit.
• Copy the Memo, Copy the address.

Now from your Steem Account, you can transfer STEEM with the designated address and Memo(mandatory), to get your fund in the Poloniex wallet, and then you can trade STEEM for the base currency like USDT, BTC, TRX, etc.

In a similar way, you can also withdraw STEEM from the Poloniex wallet to your STEEM wallet or any other valid STEEM wallet. You just need to go to the wallet and then click on withdraw, select the desired currency, enter the external crypto wallet address, include the memo(if required), and withdraw.

Pros & Cons of Poloniex

Pros

• No KYC, No complex registration is required. One can get started with a simple Email Address to become Level 1 verified.
• Simple user interface.
• The trading fee is the lowest in the industry, only 0.09% at the basic level, with high monthly trading volume, it further gets lower.
• Wide list of supported cryptocurrencies, more than 100.
• Margin trading is possible even without KYC.
• It also offers an entry-level experience to the new user and traders by allowing them to buy crypto with cards.
• The base currency includes all popular stablecoins.
• Even if someone loses access to his email account, he can still recover his Poloniex account, through a detailed & thorough security process.

Cons

• Customer Live Support is a little slow.

Summary

With the new partnership with the Tron foundation(since Nov 2019), Poloniex has further lowered the barrier to entry, one can get started with a simple Email address, the trading fee(0.09%) is even lower than Binance. Further, with TRX Balance you can further reduce it by 25%, with higher trading volume, a trader will rise to the next tier to enjoy a much lower trading fee.

It allows the user to get started with a simple registration with just an Email ID. No other centralized exchanges match such a simple process of registration, even their No-KYC policy includes at least Name, Mobile Number/2FA, Email Address. Poloniex makes it simpler by offering Level 1 with just an Email address.

Poloniex DEX, Margin trading, Lending, etc are the other variants of Poloniex to bring advanced and DeFi use-cases to the table. Put simply, Poloniex caters to a wide consumer base ranging from Basic to advanced traders, seasoned crypto players to naive users, also enable the entry-level experience by allowing users to buy crypto with cards.

Thank you.

Cc:-
@steemitblog
@steemcurator01
@steemcurator02

Unless otherwise stated, all the images, infographics, charts, tables, etc(if any) are my original works. Screenshots are taken from the Poloniex official exchange site.

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