Poloniex Exchange Review with Pros and Cons – Is it Safe?

Poloniex was the most popular cryptocurrency exchange before Bittrex.

They offer margin trading and lending.

Table of Contents

  1. When did they start?
  2. Do we know the founders?
  3. How secure is it, is there 2FA, etc.?
  4. What’s the withdrawal limit?
  5. Is it insured, if not, is there a backup fund?
  6. What does the exchange focus on?
  7. What are the fees?

START AND FOUNDER

Poloniex was founded in the United States, in early 2014, by Tristan D’Agosta.

Just four years later, the exchange was acquired by Circle for $400 Million; however, that only lasted 1.5 years, as the exchange got sold again, in October 2019.

It is currently owned by Polo Digital Assets, Ltd.

Poloniex is based in Boston, MA.

SECURITY

Just like on any reputable exchange, you have the ability to add Two-Factor Authentication here too.

Since the Circle acquisition, they became much stricter, like requesting you to verify yourself for even the most simple things.

The verified withdrawal limit is $ 25,000.

INSURANCE

To our best knowledge, Poloniex is not insured; however, they keep the majority of the user funds in Cold Wallets, and they have acquired numerous US State Licenses, so it’s fair to assume that they are on the safer side of cryptocurrency exchanges.

THE EXCHANGES FOCUS

Poloniex focuses on becoming a regulatory friendly altcoin exchange, while also offering margin trading.

Ever since they got acquired by Circle, they started to focus more and more on customer satisfaction, like developing a mobile application and making it better week by week.

The number of open support tickets also went down from 142,000 to just 200 in a month.

Poloniex showcasing its ability that allows users to stake on the website.
Cosmos is one of the many coins on which Poloniex distributes the staking/holding rewards between its users.

FEES

They have a different maker and taker fee, and they both depend on the past 30 days trading volume.

MakerTaker30 Day Volume
0.15%0.25%< $25,000
0.08%0.20%< $1,000,000
0.05%0.15%< $2,500,500
0.02%0.13%< $20,000,000
0.00%0.10%≥ $20,000,000

Poloniex

8.5

Ease of Use

8.5/10

Security

8.7/10

Fees

8.2/10

Pros

  • Option to margin trade
  • Much improved support
  • Ability to lend coins to margin traders

Cons

  • Having to verify yourself