Based in San Franciso, United States, Poloniex is a popular crypto-to-crypto exchange known for offering advanced trading features and strong security. It is a fantastic exchange for beginners because it has a simple user interface which allows for easy and seamless trading. Perhaps one notable thing about Poloniex is that with it, you cannot trade crypto against fiat currencies. The platform allows trading between cryptocurrencies only. On a positive note, though, Poloniex has multiple crypto pairs, a fact that makes crypto traders very thrilled about the exchange. The coin pairs supported by the exchange include Bitcoin, Ethereum, Litecoin, Monero, Ripple, Zcash, and Ethereum Classic.
What are the pros and cons of Poloniex?
• Good liquidity: With liquidity of over $10 million of daily traded crypto, Poloniex is certainly worth writing home about.
• High security: Poloniex takes security very seriously. It enables 2-factor authentication for user accounts amidst other security strategies. Sure, it was hacked in 2014 but the platform has since enhanced their security notches higher using the necessary security protocols. Despite the hacking, Poloniex gave their users all the stolen funds. This speaks volume about their integrity.
• Wide selection of crypto pairs: Poloniex is hands down one of the leading exchanges with an abundance of available assets and trading pairs.
• Margin trading: Even with a small amount, users can invest in the cryptocurrency along with their Polonecks.
• Low commission: If you are a big-time trader on the platform (trading 1,000BTC or more daily), you enjoy low commissions on operations (up to 0, 00%).
• Absence of fiat trading: This one is a bummer for many traders because it is absolutely limiting. That said, some smart minds have found ways to hedge.
• Withdrawal limits: Users on the exchange can only withdraw up to a maximum of $2,000 per day. This is quite too low for many traders. Luckily, you can increase your limit by undergoing an additional verification.
• Speed: The Poloniex website can be annoyingly slow. Speed is of utmost importance in the crypto world hence this can be a major turn off for many.
• Language limitation: If you don’t understand English, the exchange will not make much sense to you at all.
Reasons to close Poloniex account
Although Poloniex is one of the most lively and user-friendly exchanges in the world, it can be impractical for many traders out there. For starters, the fact that it doesn’t support fiat currency makes everything all the more complicated. This means that if you have to make deposits and withdrawals, you can only do so online via cryptocurrency. Since most traders trade their crypto against their fiat currency, having no fiat-crypto feature might be a good reason to close a Poloniex account.
Secondly, if you have any issues with crypto withdrawals and can’t get the Poloniex support to help you, or it takes too long to get help, it might be a good idea to move to greener pastures.
Another reason to delete your account is because of security. Although Poloniex guarantees a high level of security, realize that it is a centralized exchange. They have your private key meaning there’s a risk (however small) of being hacked. However, try to bring this up with the support before terminating your account.
How to Delete Poloniex Account
Currently, you can only shut down your Poloniex account using the following procedure:
Step 1: Sign into your account
Step 2: Navigate the support ticket and fill out the form with all the requested details. Be sure to select the “Request to remove my account” option on the subject type.
Step 3: Include your honest reason for your decision to delete your Poloniex account.
Step 4: Click the submit button.
Step 5: Wait for the confirmation message that your account has indeed been closed.
How to withdraw your cryptocurrency from Poloniex
Before you delete your account, you should first withdraw any pending balance in there. If you don’t, the deletion exercise won’t be activated. To withdraw your funds, follow these few steps:
Step 1: Visit the Poloniex website
Step 2: Navigate the withdraw button
Step 3: Open your mobile or desktop wallet to generate a deposit address
Step 4: Copy this address and paste on the checkbox displayed then enter the number of coins you want to withdraw.
Step 4: Wait. Depending on network traffic, the process may take a few minutes to 4 hours. It shouldn’t go more than this.
Step 5: The final step is the user confirmation. Remember this feature isn’t enabled for customers with 2-factor authentication.
Best places to store cryptocurrency outside of Poloniex
When considering where else to turn to after Poloniex, you’ll be faced with quite a choice to make. You’ll have to decide between using a centralized system and a decentralized system.
1. Centralized systems
Simply put, centralized systems, or hot wallets are connected to the internet. Poloniex falls in this category plus many others including Binance, Bitfinex, Coinbase, Kraken, and Bittrex. The advantages of centralized systems include ease of accessibility and high liquidity. But they have quite a number of drawbacks– the biggest one being security. Being connected to the internet, hot wallets are constant hotpots for theft. In the last 9 years, more than 30 digital currency exchanges have been hacked. If you must you’re your digital assets in a hot wallet, make their amount minimal. This way, a hacker won’t waste expensive resources trying to assess small money. Then there’s the issue of government bans and poor support. Centralized systems also experience hacks and bans because when you buy cryptocurrency, you technically don’t own it. The reason is that they keep your private keys.
2. Decentralized systems: best value for your money
The best place to store and trade crypto is decentralized systems or hardware wallets. A hardware wallet can be simply defined as a physical device that is mainly kept offline while still having the ability to be connected to a computer wherever needed.
Decentralized systems have a solution for all the aforementioned limitations of centralized systems. Essentially, when you make a transaction on a hardware device, you are asked to confirm it by pressing a button on the device. This makes it impossible for a hacker to get through to your assets. What’s more, unlike hot wallets that use third-party services to store customers’ funds, cold wallets give customers complete control of their accouns without the risk of hacks or server downtimes. In the history of cryptocurrency, no single cold wallet has ever been hacked before.
Some of the hardware wallets recommended for storing crypto include Ledger Nano S and Trezor. Each has distinct features that make it ideal for crypto storage but if you must know Trevoor has awesome customer service while Ledger has small writing that’s hard to read. The bottomline is, these two devices will keep your funds safe for the long haul.
Polonex Support Review
Sure, Polonex claims that their customer support is quality but there’s much to be desired here. For a long time now, many users have complained of a lack of a good customer support service. Many have claimed that their queries often go unanswered for months. Issues with withdrawals have also been reported. In the coming days, we can only hope that Poloniex pulls up their socks on this one.
Arnold Webb received a Masters Degree in Computer Science from Harvard University. Arnold currently is a full-time researcher and trader in the cryptocurrency industry. Arnold contributes content to CryptoCelebrities.co, The Bitcoin Magazine and several other publications.