In order to maintain the digital market and the online trade, cryptocurrencies have become the most used and exchanged currency in the world. Just in the same way that FIAT money works, cryptocurrencies are traded in an exchange house with Bitcoin as the reference coin. In this matter, lots of this sites or “exchangers” are growing all over the world and each one supports a number of cryptocurrencies, being Poloniex one of the most important of this exchange houses in the world.
What you need to know about Poloniex
Poloniex is one of the biggest cryptocurrency exchange house of the world and it’s based in the United States. It works with Bitcoin, Ethereum and other references for their trade. In this website, you can only trade one cryptoasset for another and no FIAT money gets involved in the business so it is necessary for you to already have cryptocurrencie to trade with them
Poloniex also works as an e-wallet for you to keep any coin you’re trading, since it “opens” a new wallet every time you purchase a new digital currency. The best part of this is that your money won’t be used as a fractional reserve (as in a bank) but will only be stored for you to arrange. Nevertheless, since cryptocurrencies have no support in case of lost, it is recommendable to only keep in exchangers e-wallets the number of coins you’re trading and any reserve should be transferred to a private e-wallet.
Why using Poloniex?
- They manage up to 80 different cryptocurrencies so you can trade the ones that you need, all in one site.
- The Huge volume of business. The move so much digital money that it would represent a loss for them to close and cheat users.
- As we mentioned before, while other sites have been having web collapse issue due to volume overflow and government regularities, Poloniex kept working normally all along.
- If you’re a massive trader and move great sums of digital money, the fees get lower and lower since Poloniex allows discount for users that move more than 600BTC/month or more
- As it is based in the United States, regulations and terms are a little bit clearer than in a Russian or Chinese exchanger, unless you’re Russian or Chinese, of course.
To open an account in Poloniex you must enter their website and register following the directions and meeting the requirements they announce. If you’re a small trader, requirements are quite basic but as you grow as a costumer it is also possible that Poloniex requires more reliable information about yourself and take a few days to corroborate them. Also, if you’re a company, the required documents get even more complicated but is still quite convenient to work with this site since all the requirements work as a safety for the users too.