How To Use Poloniex Exchange - The Ultimate User Guide
Poloniex is one of the best-known cryptocurrency exchanges. It was founded back in 2014. The platform is based in the US. It is safe to say that Poloniex was among the crypto companies that have set the standards of the modern-day centralized cryptocurrency exchanges. Many of the features provided by this platform have become compulsive. The exchange offers a diverse set of supported currencies, but it's important to realize that fiat money can't be used on this platform.
This exchange doesn't exist in the form of the mobile app, but the mobile version of the website is quite convenient. The functionality includes margin trading which can be attractive for institutional traders while other features and quite an intuitive interface can fit well less experienced users. Traders with programming skills can create their custom tools via the exchange's API or using the open-source code.
- Poloniex Verification Process
- How Long Does Poloniex Take to Verify?
- Moving Money In and Out of the Account
- How to Buy Cryptocurrencies on Poloniex?
- How to Buy Bitcoin?
- How to Buy Ripple?
- How to Transfer From Coinbase to Poloniex?
- How to Withdraw From Poloniex?
- How to Withdraw USD From Poloniex?
- Trading on Poloniex
- Polonoiex Margin Trading
- Why Does Poloniex Need Social Security Number (SSN)?
- How to Delete a Poloniex Account?
- How to Use Poloniex API
The registration process on Poloniex is quite simple. One needs to input the first name, last name, country of residence, email address, date of birth, and password (twice). Also, it's required to pass the reCapture test and agree with the terms and conditions of use of the website.
The next step is the confirmation of the email address. After clicking the confirmation link that is sent via the email the user is free to log in. As soon as one signs in, the website requests more information. It includes city, street address, postal code, the country, the region of the country, social security number, and phone number.
Providing this data is necessary to be allowed trading on Poloniex. It is needed to be able to start trading with a daily withdrawal limit above $25,000.
Poloniex Verification Process
Another step is the verification of the account. To do so the potential user is required to upload ID/passport/driver's license photo. Those users who wish to be able to withdraw more than $25,000 per day should contact the support team and ask for the additional (final) verification step. There's no available information on the data requested from users who want to get access to the full set of the exchange features.
How Long Does Poloniex Take to Verify?
According to the website, the verification process can take up to several days and in some cases, it can continue via the emails with the support team. The exact Poloniex verification time is not specified anywhere in the official sources. If we take a look at the reports left by Poloniex users around social media (e.g. Reddit) we will find out that sometimes traders have to wait for months. More than that, the accounts of some of these people are frozen by the platform administration. The case even became the reason for the DOJ interest. Nevertheless, it seems that in many cases verification takes less time. It is recommended to insistently ask the support team to complete the verification if the account review takes too long.
Moving Money In and Out of the Account
To deposit money on Poloniex one needs to click on the Balances button in the upper-right part of the website and choose "Deposits and Withdrawals" in the pop-up menu. It takes the user to the next page containing a large list of supported coins which can be deposited/withdrawn. As soon as the needed currency is chosen one gets the personal deposit address. When the money is sent, one should wait for confirmation that might take up to 4 hours. When the funds finally appear on the account, one might start trading.
It was already mentioned that fiat money can't be deposited on this exchange so how to deposit USD to Poloniex in case if one doesn't have any cryptocurrencies? There are several alternatives to funding the Poloniex account with USD. First, it is possible to buy Bitcoin with a credit card using Simplex service which is available for the Poloniex exchange users. Also, it is possible to send some USD via bank wire transaction. To do so, the user must link the bank account to the exchange. Sent dollars will be deposited in the form of so-called stablecoin — cryptocurrency pegged to the US dollar USD Coin (or USDC). This opportunity was introduced by Poloniex after the platform was acquired by Circle.
How to Buy Cryptocurrencies on Poloniex?
Markets can be found in the Exchange tab of the website. In the right part of the exchange page, users can choose one of the markets: BTC, USDC, USDT, or ETH market. For example, if the user clicks on the BTC tab, he/she will be able to choose the currency to buy or sell it in exchange for BTC and see all the associated info in the list.
There are three ways to buy the desired cryptocurrency on Poloniex:
1. It is possible to ask for the needed currency for the desired price (which can be lower than the lowest ask at the market) and create the respective order.
2. Another way is to post an order with the lowest ask price already existing in the market.
3. Or one can take the existing order from the order book if the user agrees to pay the requested amount of money.
After choosing the best way to buy/sell the needed currency one should tap the Buy button. That's when the system will start to look for a match for the user's order. In case if the ask price is lower than any other order in the exchange, then the user's order will be placed in the order book as an open one. If the system finds a match for the requested price, then the trade happens at the same moment. The open orders can be canceled by the user anytime. When the order is filled it can be found in the Trade History tab (My Trades).
The trading fee varies between 0.15% (for maker orders) and 0.25% (for taker orders). Those whose monthly trading volume is above $25,000 pay lower trading fees. Just like many other exchanges, Poloniex doesn’t collect deposit fees.
How to Buy Bitcoin?
Buying one of the basic currencies (BTC, ETH, USDT, USDC) is the easiest task on Poloniex. If one wants to buy BTC he/she should click on the BTC tab in the Markets section and find the deposited currency in the list. This currency will be sold in exchange for BTC.
For example, one chooses to sell 10 LTC in exchange for BTC (see the screenshot above). The user should pick LTC in the list in the Markets tab (in the right part of the website) and fill the desired price in the Sell LTC section and tap Buy or choose the existing order from the order book (which can be found under buy/sell LTC sections). The same way one can buy Ether, USDT, or USDC.
How to Buy Ripple?
As there are no separate tabs for the currencies besides ETH, BTC, USDC, and USDT, users wanting to buy other currencies should use a slightly different algorithm.
For example, some user is going to buy Ripple (XRP). This person will have to get one of the basic Poloniex currencies first (BTC, ETH, USDT, or USDC). As soon as one of these currencies (as an example we will use USDT) is deposited in his/her account the user will be able to buy XRP. The algorithm is the following: the user should tap on the currency he/she wants to sell in exchange for Ripple in the Markets tab (USDT) and choose XRP in the list. In the Buy XRP section, one needs to specify the price and the desired amount of Ripple and tap the Buy button or alternatively look for the satisfactory order in the order book under the buy/sell XRP sections.
How to Transfer From Coinbase to Poloniex?
Those Coinbase users who want to diversify their trading experience can easily send their coins to the Poloniex account. We'll use the example of Bitcoin to show how it works. To transfer some bitcoins from Coinbase one needs to proceed to send/request tab on this exchange (horizontal menu in the website header). After clicking on the send/request button the user should insert some information in the Send tab. The first section that should be filled is the Bitcoin address. This address can be found on Poloniex. The user should proceed to the Deposits and Withdrawals tab of the Balances section, choose Bitcoin in the list and click on Deposit. Right after it, the system will generate a personal Bitcoin Deposit Address for the user. This address should be pasted in the Bitcoin Address (Recipient) section of the Send tab on Coinbase. The next step is specifying the amount of Bitcoin. When the amount is inserted one sees the amount of the network fee. That's when it's time to click on the Send Funds button, then one needs to confirm this action after the check of the inserted data. In the case of Bitcoin, Coinbase to Poloniex transfer time can last from 10 minutes to around a couple of hours. After the confirmations take place, the information about the Bitcoin transfer can be found on Poloniex in the Transfer Balances tab of the Balances pop-up menu.
How to Withdraw From Poloniex?
The withdrawal process is simple. To withdraw funds, one needs to click on Balances in the upper-right part of the website and choose Deposits and Withdrawals in the pop-up menu. There the user should proceed to the Withdraw section and specify the wallet address of the needed currency and the needed amount. It's important to realize that some currencies require the use of additional tools (payloads, memos, etc). One should never neglect these rules in order not to lose money.
Withdrawal fees on Poloniex are flat and different for each currency. The website claims that these fees are used to cover the cost of the broadcasting transaction to the network.
According to the website, the transaction time should not overcome 4 hours. Nevertheless, sometimes transactions get "frozen" for days. Some users complain about long periods of Poloniex withdrawal pending. Such things might happen when the platform suspends the withdrawals of certain currencies due to tech maintenance. In the Withdraw list, users can see if the withdrawals are temporarily disabled. Most users who have faced the problem of the stuck transaction recommend to contact the support team and ask for help.
How to Withdraw USD From Poloniex?
Users wanting to withdraw USD from the Poloniex account might use the connected bank accounts. It works through the tokenized version of USD known as USD Coin (USDC), a stablecoin pegged to the US dollar.
Trading On Poloniex
The first thing we'll discuss is how to read the Poloniex charts. The element that can be found on most of the other exchanges is so-called candlesticks that show the market trends, upward (green) and downward (red), that took place in certain periods of time. The candlestick charts help to evaluate the current market trend.
Besides this, charts reflect the Last Price, 24-hour change, 24-hour low, and 24-hour high. Plus we can see the 24-hour trading volume on a certain market. These figures help to evaluate the liquidity and the current market situation.
In the right part of the screen, one can see the prices (and price changes) of the coins supported on the platform.
Under the buy/sell section there are the trade history and the market depth chart graphically reflecting supply and demand on the market (buy and sell orders).
Poloniex Margin Trading
As the exchange provides an opportunity for leveraged trading, verified users can proceed to the Margin Trading tab and place orders backed by the borrowed money. The algorithm is the following:
1. The user should transfer some assets to the Margin Trading account via the Transfer Balances button.
2. When the account is funded it's time to start trading. Buying creates a "long" position while selling is creating a "short" position. The positions can transit into one another in the process of trading.
3. As soon as the position is closed, the loans get automatically settled. If the user earned something while trading, these assets will be added to the margin account. In the opposite case, the lost money will be deducted from the collateral.
In order to short, let's say, Bitcoin on Poloniex one needs to check if the shorts are in the high position in the chart. If they are, the shorting of Bitcoin is riskier. The shorting is reasonable only in the case of Bitcoin is in the downtrend. The trader is selling borrowed Bitcoin at a relatively high price, and then buy the same amount of BTC for the lower price.
Why Does Poloniex Need Social Security Number (SSN)?
As the company became fully compliant with rules associated with tax, AML (anti-money laundering) and CTF (counter-terrorist financing) regulations, it requires users to provide verifiable personal data including SSN. In the case of illegal activity such as financing some violent activity, illegal gambling, money laundering, and so on, Poloniex will be able to cooperate with the investigation.
How to Delete a Poloniex Account?
First of all, it's better to withdraw all the money from the account before closing it (or it will be lost). Trades can be exported via Trades History. Deposits and Withdrawals can be exported through Deposit and Withdrawal History. As soon as all the funds are withdrawn, the user should contact the support team and ask them to delete the account. There's no other way to close the Poloniex account.
How to Use Poloniex API?
On Poloniex one might use both HTTP and WebSocket APIs. HTTP API is needed for private read access (to the user account). The public HTTP endpoint can be obtained through GET requests. The private endpoint is obtained through HMAC-SHA512 signed POST request (with the use of API keys). The results are returned in JSON format. Push notifications about the order books can be set via WebSocket API.
Only the verified users may create API keys. Withdrawals should be enabled manually for each key. It is recommended to turn on the IP restrictions for API keys.
One can't use a private HTTP endpoint without a nonce (the numeric expression should be greater than the previously used nonce). In order to ease the work with nonces, it's better to use a separate key for each client process. All the necessary coding info can be found on the website.
In general, there are not many difficulties in using Poloniex as the interface is user-friendly. Moreover, the support team is quite responsive so it's better to contact them in case of dealing with troubles. Probably before asking a question one will be able to find the answer on the support center page. Hopefully, our little guide is helpful, too.