Poloniex Review

poloniex LogoIs the exchange platform of Poloniex safe? Is the exchange platform for cryptocurrency safe and does everyone know who the owners are? This review will show how Poloniex, once an unknown substitute exchange was able to get the trust of its users, advanced functionality, and then, later on, took over market share of its competitor. After suffering from a small security breach, and experiencing full customer refunds, they reached an effective infrastructure reform. Surely the history of Poloniex is a fascinating thing to read about.

Poloniex is currently operational in the US. It is a crypto-to-crypto global exchange and a money service business (MSB). Although it was already established and fully operational in January 2014, it was registered with the Financial Crimes Enforcement Network (FinCEN) on August 29, 2016.

There is almost no data found online about the ownership of the said company. According to the bureau, it has exchange’s offices in   Wilmington, Delaware listed as the location. Based on research, the address goes to an agent.

Someone named Tristan D’Agosta is said to be the founder of Poloniex. This can be found on company profiling website Owler and LinkedIn. Through these pages, it can be found that Tristan D’Agosta is a music composer. He also did freelance writing. He has a  Bachelor of Arts in music from the Rutgers University.

What are said to be the Advantages of Poloniex?

  • Based on average volume in 2017, it is considered as the largest Ethereum exchange in the world.
  • It is the popular place for those who are serious about crypto trading, and traders that are looking for trendy and new coins for assumption.
  • They give very detailed charts and effective tools for data analysis.
  • It is open source, which is transparent for those really interested, who want to check.
  • Aside from an exchange platform, it can give crypto assets a wide choice of margin trading and lending services.
  • The services are readily available from any part of the world.
  • It supports the greatest number of popular digital assets in the business, amounting to over 70.
  • In comparison with other exchanges, it charges low cryptocurrency exchange rates
  • After a minor security breach, the company was able to refund their customers in full.
  • Great feedback and customer service are given by community representatives. They are active in replying to inquiries and hearing responses on social media.

What are said to be the Disadvantages of Poloniex?

  • There are unverified reports of users that are unable to withdraw funds from Poloniex since May 2017.
  • Funds are exposed to safeguarding risks because the key management is centralized and isolated.
  • It eliminates all users who are interested in using the Poloniex to “on-ramp” into crypto because of the incapability to deposit permit currency.
  • Sometimes, there is poor customer support ticketing system, sometimes there is even no support at all.
  • There have been no visible managers or investors, and there have been no interviews on them so far.
  • Another precaution for distrust is that there are no known physical offices.
  • They have turned strict in creating accounts, having potential users verify their identity when it comes to high-volume activity.
  • Due to the boom in cryptocurrency, there have been instances of downtime, as well as, issues on speed.
  • Although this has helped decrease price manipulation with the spreading of deceptive information, the open chat system, Trollbox was lately disabled.

Poloniex Cryptocurrency Exchange

What is Poloniex’s Market Positioning?

Due to insufficient information about the founders of Poloniex, and other people involved in top management, along with the fact that it has no physical office, some question the credibility of Poloniex. Even as this review is being written, it is quite odd that the founders choose to isolate themselves. In online forums such as Bitcointalk and Reddit, the security of user funds on the exchange has been an active topic of discussion.

Because exchanges such as Kraken, Coinbase and Bitstamp share information about their management, founders and investors to the public, they are seen as much more legitimate. Despite this, Poloniex has continued to develop in terms of its customers, transactions and the amount of cryptos supported.

Poloniex has the highest total of traffic in the industry of crypto exchange. The website encounters over 50 million visits in a month. Coinbase comes in next with about 45 million visits monthly.

The sources for Poloniex’s traffic are the United States (24.84%) and Russia (6.06%). Other top countries that cause traffic are the United Kingdom (4.65%), Brazil (3.14%) and Vietnam (3.67%).

One other difference of Poloniex from other exchanges is its absence of support for fiat currency. However, according to some users, not dealing in fiat currency allows breathing-room from government controllers. This has become one of the main advantages. With that, a large number of crypto assets is supported by Poloniex. The number of listed coins was over 70 as of August 2017.

Since the demise of Poloniex’s largest rival exchange, Cryptsy in 2016, Poloniex got almost all of its market share and users. Users hurried to sign up for Poloniex because it was the best alternative. Shapeshift (with 50 crypto assets) and Yobit (250 listed coins) do not support fiat currency. A percentage of crypto holders favor Shapeshift because an account is not needed by its users. Due to this, Shapeshift does not have most of the tools and amenities traders need such as graphs.

Although Poloniex does not have any mobile applications, the mobile version of the website works effortlessly like the desktop version. Poloniex API is also available. This is where third-party developers can make tools for analysis of data and management of accounts.

For those who seek to convert from one margin trade, cryptocurrency to another, and lend, Poloniex is the first choice. The services are readily available and only has few requirements needed for sign up,  unlike Bitstamp, Coinbase, and Kraken.

What is the Security at Poloniex?

In terms of centralized exchange audits, the exchange handles all private keys to the wallets which have your cryptocurrencies. The exchange guarantees users that it keeps most of their deposits offline. There is 2-factor verification for account holders, along with browser detection tools.Users must believe that the actions in place are strict enough and that individuals in charge of funds are truthful.

The exchange experienced a minor security breach in 2014 where 12% of all customer bitcoin deposits were taken. With that, users with stolen funds were told that they would be reimbursed. Poloniex was able to fulfill this, many months after.

With all the information presented, it can be seen that insufficient information about an originator is not always negative. Despite this, it is sensible to retain on the exchange only as much as you need to give, trade. Poloniex is still a central platform that has high risk.

With central exchanges, you should continuously send whatsoever funds you don’t instantly need on the platform to a wallet you control.

Overall User Experience

The Poloniex has a fine working interface, except when the site is experiencing difficulties from real peak trading times. Some users are welcomed by a typical Cloudflare page. These pages are common amongst crypto sites and are used as a filter for various things such as malicious traffic.

The interface was redesigned in 2015 and the company has received many good reviews regarding their website presentation and development.

Overall, the experience of the average user can be compared to those using Bittrex or Kraken. Poloniex can also be compared with Shapeshift. The only difference is that you will need to sign up to Poloniex. Shapeshift permits guests to trade without registering. As for choosing a pairing, is not as upfront as Shapeshift.

One common issue from its users is that the deposits take a while to reflect in the user account. Some have also said that some coins were never received. Also, many users blame the customer support because of their poor and sluggish handling of complaints. There were reports of tickets taking months to be resolved.

Use of Poloniex Account

Account types

Creating an account on Poloniex is relatively easy compared to other digital asset exchanges. Although it observes some degree of requirements, the process is less strict because the exchange only receives crypto deposits.

Only one account is permitted, and registration of more than one may lead to suspension or removal from the platform. Having an account, however, automatically gives one access to all three services: exchange, trading and lending services.

The exchange service is in charge of the movement of worth from one crypto to another. The margin trading service allows you to control your cryptos and receive gains from price fluctuations.

If you are risk opposed but still want to generate income from the platform, cryptocurrencies can be put up so that you can lend and trade with them. You will get a definite interest rate once this is done.

When you are involved in margin trading, you basically have access to the three sectors offered on Poloniex. Exchange can be made in the margin trading and a lending or borrowing sector. You can borrow assets from the lending section to invest in the margin trading section.

If you are thinking of moving your value to another crypto type, the classic exchange section is used. This is also where you make deposits.

In comparison to Bitstamp/Kraken or the GDAX of Coinbase, Poloniex seems to be the easiest to use. You are ready to deposit and start trading right away upon sign up. However, one unique feature is that Poloniex gives additional risk-averse crypto holders the choice of loaning out their coins.

Verification of Accounts

There are also three levels of account in Poloniex.

The first level of verification is providing an email address, name and country of residence during the signup stage. You are allowed a daily lowest deposit and withdrawal amounting to $2,000 cryptos during level one verification. With this level, you can exchange, trade and lend having only the minimal deposit and withdrawal.

You need to apply for level-two verification if you want to increase your daily limits. This can be achieved by giving your physical address, passport ID, phone number, postal address, date of birth and.

Poloniex also entails you to upload an ID photo and a passport photo. Upon approval, the daily boundary for deposits and withdrawal becomes $25,000 worth of cryptos.

You can get an even higher level account with a limit that exceeds $25,000. You apply for this level by reaching out to support. The deposit and withdrawal limits Poloniex offers are relatively higher than you will get from accounts on Coinbase, Kraken, and Bitstamp.


Poloniex is one of the most inexpensive exchanges to use since it receives only crypto withdrawals and deposit. This is because the exchange doesn’t support fiat currency. These cost more than cryptocurrencies because of KYC vetting, added supervisory requirements, and interbank fees.

Both the maker and the taker pay business fees. Usually, a maker pays lower fees in a transaction compared to a taker. The fees of a maker vary from 0% to 0.15%. On the other hand, the taker varies between 0.05% and 0.25%. Lower fees are paid when a higher amount is involved in a trade.

Such fees are applicable to both the exchange and the trading platform. Lending fees are established by those who have their funds for borrowing. Being a highly competitive market, the lenders with lower interest tend to be more successful when traders take their offers. Yet, regular loan offers on the platform charge a minimum of 0.2%. Poloniex takes 15% of the incomes of the lender.

Poloniex Alternatives

These are the most popular alternative cryptocurrency exchanges aside from Poloniex:

  • Kraken.com – not many crypto coins, high volumes & fast fiat deposit/withdraws. It has a high trust rating. There is a comprehensive review of Kraken. (USA)
  • Bittrex.com – fewer users many coins, – but fiat deposits and less than 10k USD are allowed. Margin exchange is coming soon. (USA)
  • Yobit.net –most available cryptocurrencies, good to try because it has signification user-base. (Russia)
  • Shapeshift.io- go-to service for immediate swaps among altcoins. No account is needed. (Switzerland)
  • Changelly – offers comparable fast swapping like Shapeshift. Fiat deposits are allowed. (Czech Republic)


Kevin Lee is a former tech advisor who cut his teeth in Silicon Valley. He now spends his time sharing his passion for investing in diamonds and jewelry. You can reach Kevin for any comments by using this form.