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What Is Poloniex?
A crypto exchange is where you buy, sell and trade cryptocurrencies. To invest in crypto, you need to choose a platform first, and this Poloniex review can help. How do you find the right fit?
Alongside the rise of crypto, many different platforms have come.
They’re different in terms of the options offered, usability and security. In this guide, we introduce you to the Poloniex exchange. Here, you will discover the Poloniex app, its level of security and how to trade there.
Poloniex
Poloniex
Poloniex hosts services to sell, buy or trade cryptocurrencies. These top coins help to express what Poloniex is:
*Keep in mind that Terra (LUNA) and NEAR Protocol (NEAR) are not available on Poloniex. However, the exchange hosts native tokens from various blockchains, which include:
The mobile version of the Poloniex exchange is available on Android and Apple.
Poloniex was created by Tristan D’Agosta in 2014, but by 2018, the Circle Company bought the exchange and its ownership out. Circle is a crypto firm supported by investors like Justin Sun who is a well-known personality in the crypto world. Justin is the CEO of the crypto network Tron.
Previously, he worked for the Ripple network in support of banking institutions.
Circle’s takeover of Poloniex reportedly cost $400 million and was driven by the company’s ambition to “accelerate the token economy.” In November 2019, Poloniex was completely owned by Circle, and in that same year, the exchange’s headquarters moved from San Francisco to Bermuda.
Although accessible in many countries, it is not available to users living in the United States.
Circle’s takeover of Poloniex attracted the attention of the Securities and Exchange Commission. This securities police of the USA took action against Poloniex, accusing it of not being registered. As its basis, the SEC accused Poloniex of trading unregistered securities in 2017 to 2019.
The commission’s claim was that Poloniex sold assets, without proper registration, illegally to U.S. citizens. This is while operating as if a U.S. company, renting an office within Boston. In its filing, Poloniex had to be registered to sell securities to the U.S., which is a clause causing delays for other sites too.
The Ripple network was plagued by the SEC for two years on the same terms.
« Poloniex chose to increase profits rather than comply with federal securities laws[, selling] digital asset securities on its unregistered exchange. Poloniex attempted to circumvent the SEC’s regulatory regime, which applies to any market to bring together buyers and sellers of securities, regardless of the technology applied. » Kristina Littman, Responsable de la Cyber Unit de la SEC Enforcement Division
Faced with this, Poloniex, having been acquired by Circle, was able to transact a settlement agreement with the SEC. In August 2021, the new Poloniex exchange, to clear its past with U.S. citizens, settled its action suit for $10.4 million. To no longer pursue the site for its U.S. dealing, Poloniex paid the SEC:
Some issues still lingered as the SEC has since drafted legislation to account for similar exchanges. The SEC said it needs time to “solicit and appoint a fund administrator capable of executing a claims process and developing and proposing a distribution plan.”
Poloniex
Poloniex
Like Binance or Coinbase, Poloniex offers more than just an exchange service.
Find out more about the ecosystem below:
Of course, the main service of Poloniex remains crypto trading. As mentioned above, the exchange gives you an edge by offering hundreds of cryptocurrencies. From meme coins, DeFi tokens, metaverse crypto and ICO tokens, you can find them all on the Poloniex app.
Poloniex has these two ways to trade crypto:
You can lend bitcoin through Poloniex’s lending services. Have a look here:
You’ll find promotions on Poloniex’s exchange that, though time sensitive, will let you earn free tokens.
Like Binance, the Poloniex app has its own launchpad, which is a menu tab where you can search out new tokens. The search tool gives you the opportunity to invest into new projects or to purchase new tokens at lower prices. Just recently, Poloniex offered JUST and APENFT tokens within its launchpad.
Poloniex has a reliable referral program. Friends that use your referral link and open a Poloniex account count toward the rewards you get. Through the Space Travelers program, by referring Poloniex, you earn:
Poloniex also has a tab where bonuses are and are associated with your “futures” trading volume that go into a “trial fund.” Trial funds cannot be withdrawn from, but you can use them to place futures orders or pay fees. For example, at the time of writing this guide, the active bonuses were:
The Poloniex exchange is usable as a decentralized crypto exchange (DEX) through SunSwap.
Unlike Poloniex, which is centralized, SunSwap allows you to exchange crypto peer-to-peer, which is to say without going through intermediaries. Like most DEXs, you cannot use fiat money but only crypto for the exchange, which is TRON in this case.
SunSwap operates on the TRON blockchain and supports TRC-20 tokens. These tokens run on the TRON blockchain and are compatible with Ethereum. A few other tokens that SunSwap offers include:
Poloniex
Poloniex
Now that you know Poloniex a little better, find out how to trade crypto on the platform.
The exchange cannot be used in the following regions or countries:
To open an account, the exchange asks for the following information:
The Poloniex exchange offers two account tiers. The two levels are distinguished by their withdrawal thresholds as follows:
Once you’re verified, your account is then created. You’ll receive a link by which you must open to confirm via email. In addition, the platform uses KYC or “Know Your Customer” protocols. As a result, you will have to provide personal information and verifiable documents to prove your identity with.
You have the option of activating a two-factor authentication lock on your account. This can prevent malicious persons from connecting to the exchange in your name or carrying out transactions.
Each security option differs depending on whether you’re at tier 1 or 2. With tier 2, you can freely reset your password and collect insurance against the loss of your funds.
You can buy crypto with a bank or with a Visa and MasterCard. Other options include transfers or Apple Pay. The following assets can be purchased with your bank, debit or credit card:
To buy crypto, you need to deposit funds into your account, which can be fiat or crypto to purchase the assets you want.
Trading is carried out in the Poloniex Trade tab. Here, you will exchange one crypto into another. As stated above, the exchange offers hundreds of cryptocurrencies. In addition, you have the choice between spot or margin trading.
As with any exchange, there are three types of fees:
The Poloniex works diligently to ensure adequate security. Poloniex is relatively safe. Unfortunately, the platform experienced two significant attacks in 2014 and 2020. Let’s talk a little more about what happened in 2014.
Poloniex was the victim of that cyberattack on March 4, 2014. The thieves made off with around $4 million in crypto. Following this attack, the exchange lost the equivalent of 12.3% of bitcoin reserves.
As stated by the owner
“The hacker discovered that if you place several withdrawals all in practically the same instant, they will get processed at more or less the same time. This will result in a negative balance, but valid insertions into the database, which then get picked up by the withdrawal daemon.”
To avoid massive withdrawals from its users, Poloniex unanimously reduced its customers’ balances by exactly 12.3%. The loss, however, would be paid back overtime through network fees.
“If I didn’t make this adjustment, people would most likely withdraw all of their BTC as soon as possible to ensure they didn’t stay in the remaining 12.3%. » Tristan D’Agosta, CEO of Poloniex
The platform survived its two cyberattacks without losing accounts or its reputation.
Poloniex has a unique stance from a regulatory view. On one hand, Poloniex was once the critical focus of the SEC. On the other, the exchange distanced itself from the U.S. market, settling in Bermuda, to avoid U.S. regulations. For now, the exchange is not available to U.S. investors.
Poloniex
Poloniex
