Poloniex.com – Scam or Not?

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NEWS: Poloniex is quite overloaded at the moment, the support is answering very slowly and the website itself is quite slow and using lots of your computers resources. At the moment, you can try Livecoin as a alternative for  Altcoin trading.

Poloniex is one of the most diverse cryptocurrency exchanges in the world. They provide a superb liquidity for the majority of altcoins, which can be traded against Bitcoin.

Poloniex

Tristan D’Agosta founded the exchange in January of 2014. The Poloniex executive level is kept anonymous, probably because digital currencies are still a bit shady business and they don’t have a license for offering exchange services in the United States. The company is based in San Francisco, California. They are focused on the United States market but tend to attract altcoin traders from all over the world as well.

Verification on Poloniex

The account creation on Poloniex is rather simple and can be done in under 5 minutes. The user provides necessary information and needs to click on the confirmation email in order to complete the creation of an account.

The verification process is similar to the verification on other exchanges, and it has two levels.

The first verification level requires email verification, first and last name as well as country of residence. When completed, the daily withdrawal is set to 2,000 US dollars, and margin trading is enabled.

The second verification level requires personal information, address, phone number and a scan of photo ID (passport, national ID, driver’s license) and a picture of the user holding Photo ID. It can take a few days for the staff to review the submission and to verify the account. In the case of any problems, a user will be notified to contact support regarding the verification.

When completed, this level of verification allows daily withdrawal limit of 25,000 US dollars.

There’s also a third level of verification which can provide limits higher of 25,000 US dollars. Additional details about the requirements aren’t publicly available, so users or companies need to contact support.

The exchange doesn’t support FIAT currencies. Deposits are possible only in digital currencies. The closest thing to FIAT currency is Tether USD, which is basically US dollar placed on the Blockchain.

The support for digital currencies, on the other hand, is enormous:

  • Bitcoin (BTC)
  • Litecoin (LTC)
  • Dash (DASH)
  • Ethereum (ETH)
  • Zcash (ZEC)
  • Monero (XMR)

And over 80 other popular digital currencies are available for trading on Poloniex. The full list can be seen here for registered users, or on the live trading screen for non-registered users.

Poloniex Fees

The trading platform uses a standard maker-taker model which encourages market liquidity by rewarding the makers with a lower fee. It likewise results in a better market spread, because it motivates the makers to outbid each other. This model is particularly important for Poloniex since they are one of the most diverse exchanges with over 80 supported cryptocurrencies and it’s a significant challenge to provide a good liquidity for all of them.

The users are charged according to the following fee schedule:

  • below 600 BTC – 0.15 percent for the maker, 0.25 percent for the taker
  • from 600 to 1,200 BTC – 0.14 percent for the maker, 0.24 percent for the taker
  • from 1,200 to 2,400 BTC – 0.12 percent for the maker, 0.22 percent for the taker
  • from 2,400 to 6,000 BTC – 0.10 percent for the maker, 0.20 percent for the taker
  • from 6,000 to 12,000 BTC – 0.08 percent for the maker, 0.16 percent for the taker
  • from 12,000 to 18,000 BTC – 0.05 percent for the maker, 0.14 percent for the taker
  • from 18,000 to 24,000 BTC – 0.02 percent for the maker, 0.12 percent for the taker
  • from 24,000 to 60,000 BTC – 0.00 percent for the maker, 0.10 percent for the taker
  • from 60,000 to 120,000 BTC – 0.00 percent for the maker, 0.08 percent for the taker
  • over 120,000 BTC – 0.00 percent for the maker, 0.05 percent for the taker

For lenders, there’s a 15 percent flat fee to earned interest.

The fees calculation is based on the last 30 days of trading volume for each user and automatically adjusts the fees according to the volume.

Deposits and withdrawals are free of charge on Poloniex.

Trading

The trading screen on the exchange is very smart. It offers multiple time frames, multiple-option candlesticks and both Fibonacci levels and Bollinger bands. This trading view is available for all of the 200+ trading pairs.

There are four primary markets on the platform:

  1. Bitcoin (BTC)
  2. Ethereum (ETH)
  3. Monero (XMR)
  4. Tether (USDT)

Each market has its own box and all trading pairs listed below. During last year, Poloniex accounted for over 99 percent of Tether trading volume and remains the only market with high liquidity for Tether trading.

Poloniex chart

There are three main order types:

  • Buy
  • Sell
  • Stop Limit

These orders are available for all currency pairs.

Similar to BTC-e, there’s a troll box – but despite the moderator’s effort, it can be malicious, and crooks are looking to trick the new users. Tip: it’s called “troll box” for a reason, information found in this public chat can’t be trusted.

The exchange supports margin trading, and it offers 2.5x leverage on some currency pairs:

  • BTC/XMR
  • BTC/ETH
  • BTC/MAID
  • BTC/XRP
  • BTC/DASH
  • BTC/FCT
  • BTC/LTC
  • BTC/STR
  • BTC/BTS
  • BTC/CLAM
  • BTC/DOGE

There’s also a lending option, where users can offer or demand a loan with the certain interest rate.

The exchange currently doesn’t offer to trade futures and derivates at the moment.

Ease of Use

The interface looks great, and it’s easy to use. Shifting between more than 200 trading pairs is quick, and the website looks great.

There are no apps for Android and iOS, but the platform is responsive, and it looks good on mobile devices. Some third-party apps were made with Poloniex API, but the majority of users agree that these apps cannot be trusted, especially when it comes to trading with money.

Poloniex Customer support

The exchange offers support via email, ticket and directly from troll box. The fastest way to get the answer is by asking the moderators directly in troll box, but they are known for delays. The support isn’t one of the advantages of Poloniex – they take too long to respond, and the responses often aren’t complete. There’s also a knowledge base, but it isn’t extensive, and it covers only basic questions.

User experience of Poloniex.com

There are some scam reports related to Poloniex. Some of them accuse the exchange of tempering with Ethereum Classic and making organized pumps and dumps (artificially blowing the price up and then suddenly crashing it). The accusations remain without much evidence, but many users commented on the posts related to it.

The scam accusations mainly come from the users who haven’t received free ETC at the time, so it’s fair to say that the majority of accusations were biased at the time of writing.

The website of Poloniex is quite slow and it seems the developers did not do a good job here. Compared to other exchanges, it seems to use lots of resources in your Browser and if you have a couple of tabs opened at the same time, the performance of the site goes close to unusable.

Poloniex Welcome

Poloniex Security

Like other trading platforms, Poloniex offers two-factor authentication for both login and withdrawal authorization. Also, an email confirmation is required for withdrawals. The exchange claims that the majority of customer funds are held in cold storage, as well as that they are monitoring the platform 24/7 for any unusual activity.

The exchange was hacked in March of 2014, just two months after launch and at that occasion hackers stole 12.3 percent of Bitcoin on the exchange, which was approximately 50,000 US dollars at the time. The vulnerability was easily fixed, and there were no incidents since.

Poloniex wasn’t able to absorb the loss, so Mr. D’Agosta, CEO of the exchange, stated:

“If I had the money to cover the entire debt right now, I would cover it in a heartbeat. I simply don’t, and I can’t just pull it out of thin air.”

Instead, the fee was raised from 0.2 percent to 1.5 percent, and the loss was equally distributed to all customer accounts. After two months the balances were restored, and the fee was returned to normal 0.2 percent.

Mr. D’Agosta handled the situation very well, by going public immediately and explaining what happened. His reaction was applauded by the community and played a great role in reducing the reputation damage to Poloniex.

The exchange has email and SMS notification, but PGP encryption isn’t used in communication.

Poloniex Review Conclusion

Poloniex is an excellent exchange for all those looking to trade altcoins as well as Bitcoins.

Pros

  • Many altcoins to trade in
  • Margin trading in altcoins
  • Good liquidity

Cons

  • No fiat currency trading
  • Pumps and Dumps
  • Poor support

A great exchange with a good reputation.

 

Do you have experience with this Bitcoin Exchange? Please share it!

 

Go to Poloniex.com
Write a Review about Poloniex.com:

79 User-Reviews for Poloniex.com
  1. John, 24. June 2017

    Non existent support, ETH fake Transaction IDs so your money is gone effectively if you try to take it out of Poloniex. It has happened with SIA and other altcoins as well. Avoid with your life. Poloniex is a scam lately.

  2. Rando, 25. June 2017

    I have stuck there thousands of coins over 34 days now..

  3. Alex, 27. June 2017

    Awaiting Approval BTC-0.05 from 2017-06-12, 5 star))

  4. Xmblpb, 27. June 2017

    Awaiting Approval for days, Support not responding. ★☆☆☆☆

  5. roy, 27. June 2017

    Awaiting Approval for a $2000 withdrawal.
    No response from support, nothing.
    Maybe they are EXIT SCAMMING, because if they are not,
    they need to change their damn management.

  6. Shailesh Jain, 28. June 2017

    Awaiting approval since june 14 2016 for btc withdrawl. Too bad

  7. marius81, 28. June 2017

    I can confirm is a scam. Move all your coins as fast as u can because the legal issues will soon close Poloniex.

  8. james, 2. July 2017

    they answered ticket way after me, they stole my 1.83 bitcoin and fuck offf

    sad news for them im a crazy motherfucker

    heres the face of the thief we need to catch https://www.linkedin.com/in/tristandagosta

    Lets start the hunt fellows

  9. John, 2. July 2017

    ITS A BAD EXCHANGE SINCE JUNE 2017 – THEY ARE ACTIVELY MONITORING USER TRANSACTIONS ESPECIALLY FOR BITCOINS AND PUT THEM FOR “confirmation” which can take 72 hours. 5 hours my bitcoins are not send.

  10. Jake, 6. July 2017

    OMG. I can’t even setup my account. I cannot figure out the proper way to write in the phone number. I’ve done it every which way possible. Seriously??!!

  11. tomsb, 11. July 2017

    Its totally sucks!
    My money in “Awaiting Approval” More than 4 days!!! No one asked for my 5 tickets. Worst & scum

  12. leigh, 13. July 2017

    worst site ever, they have 8 of my bitcoins and I have this feeling their are exit scamming

  13. Zac, 15. July 2017

    Bytecoin trading has been disabled for over a month?
    Help desk do not reply to queries as to when it will return.
    I’ve seen this movie before, I’m taking my coins off this site.
    Something is not right at Poloniex.

  14. james, 19. July 2017

    guys i think its worse then we thought , i found this article , the guy is saying they did the same thing with ethereum fork ; if you guys a a bit wise , youll understand that they are doing the same now with bitcoin, i suggest everyone to rush a complaint to the sec that they arrest these guys asap

    https://www.reddit.com/r/ethtrader/comments/4ue785/i_am_filing_a_complaint_with_the_sec_regarding/

  15. Peter, 19. July 2017

    Just rubbish support. They do not reply for tickets for 30 days and more. Complete ignorance of the customers.

  16. Scott O, 19. July 2017

    I have 10 Ether missing on Poloniex and it’s been 41 days since I opened my support ticket up and they have yet to respond to me after countless efforts to reach them. It’s a known issue with a Ether withdrawal software issue where the transaction shows as completed in Poloniex but the TXID never even shows on the Ethereum blockchain.

  17. murkis, 20. July 2017

    SCAM!!!

    Awaiting Approval LTC 20.00000000
    2017-07-17 18:58:43
    Address: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    2017-07-20 18:32 no answers at all just automatic email we will review SHORTLY…
    Still waiting for approval…

  18. Myroslav, 22. July 2017

    they locked my account and not respoding on my request to unlock.
    No mobile or skype contact. They looks more like old cheting forex sites.
    Took real money and no cotact with them.
    I want to somehow call police, becuase they simply hold my money but not respoding on my mails!

    OLD FOREX CHEATING COMPANY !!!

  19. Robert, 23. July 2017

    Well as I see in this post and from a whole bunch of other post forums, I am also now a victim of the Poloniex “awaiting approval” fiasco. I have moved coins many of times from Coinbase/GDAX to Poloniex and vise versa without any problems(ETH, BTC, and LTC). So on the 14th of July I moved .256 BTC from Poloniex to Coinbase. I got confirmation email to approve transaction , approved it, and the next thing I know “awaiting approval” shows up. I have level 2 verification on Poloniex. I waited 24 hours, submitted ticket(#319713), and was assigned to an agent (Javan). Well it stills shows being processed. Oh I forgot to add that I move “LTC” from Poloniex to Coinbase with no problem the next day. Since my frustration I have opened 3 other tickets, no reply, no agent assigned. Nothing!!! Just get the emails of tickets submitted. Just out of curiosity, on my last ticket that I submitted, I sent a ticket in to close my account. I’m at the point of chocking this up to “Lessons” learned. What’s funny is that they haven’t even responded to that one either, this was a chance just to take my money, no questions asked. So I leave it up to you, to decide what Poloniex is really up too. I will update post when and if this ever gets resolved.

  20. Wolfgang, 25. July 2017

    About the Tier Status:
    they do offer the tier fee schedule but in fact it lags behind for several days. For algotrading it means that hundreds of dollars in fees are charged EXTRA. See the discussion here e.g. https://www.reddit.com/r/PoloniexForum/comments/6jyxsa/poloniex_tier_status_does_not_update_causing_huge/

  21. angry_man, 25. July 2017

    Worst support ever (maybe comparable with Yobit exchange, they are at least responding). Deposit easily made within 2hrs, withdrawal not processed even after 7 days. No response from support, total ignorance. Looks like a exit scam.

  22. Sezo, 27. July 2017

    I had a Support Ticked on Poloneix and 24 hours passed still no aswer yet.
    7 days passed PASC deposit but not in Balance yet. Evet it is shown in the History list.

  23. Robert, 28. July 2017

    Here’s the update, after 14 days Poloniex has finally resolved my issue and transferred my .256 BTC into my Coinbase acct. Will I ever trade again on Poloniex, probably not, until I see a tremendous improvement in customer service support tickets. I hope the best for you who still have issues with support tickets on Poloniex. Got lucky.

  24. kljsdghfhlukdswg, 1. August 2017

    New terms of service just came in, just one trade or withdrawal or deposit will result in accepting their terms of service, (taken from new Terms Of Service)
    I thought this was the most interesting: ADDITIONALLY, YOU HEREBY WAIVE YOUR RIGHT TO PARTICIPATE IN A CLASS ACTION LAWSUIT OR CLASS-WIDE ARBITRATION.

    You have no rights, they dictate all, HEIL POLONIEX!

    You can deposit, you cant withdrawal, and now you cant do anything about it…?!

    Do you really want to trade there?

  25. John, 9. August 2017

    Awful awful awful. Firstly 2F authenticator wont work, then I’m frozen out and now no response to support tickets. It seems they are now expecting a “run” on them with so much bad comment and cant open for fear of this. They are very bad news.

  26. Lilly, 10. August 2017

    I just started using poloniex for a week. My coins disappear today and I couldn’t contract customer support. Horrible website, don’t use it.

  27. bwkim, 12. August 2017

    They are lying.

    Monitoring around the clock.
    Our auditing programs monitor exchange activity 24/7/365. Their job is to report and block any suspicious activity before it becomes a problem.

    Is it true?

    I lost a lot of coins because they did not unfreeze my account.
    They are still not unfreeze my account and unresponse my ticket.
    Now, I lost almost 50 bitcoin.

  28. Jason, 15. August 2017

    If at all possible I would give this company “0” stars. So my first experience with Poloniex started off great. Then I began to have deposit issues. I’ve put in tickets and have yet to get a response after weeks. Their support center is mostly non existent. Ultimately, my effective balance is zero and will most likely lose or never get my deposits. As a general rule of thumb, I don’t do business with companies out of California. This will be third and final company out of California to rip me off from my hard earned money. I recommend that you do not use this site for anything. They will lure you in with the best prices on currencies and slowly rip you off and there will be nothing you can do about it because of their new user agreement. Get your currencies away from these people and stay as far away from them as possible!

  29. ycl, 16. August 2017

    I have sent 1241.209187 XEM 2 days ago but it didnt show up in my account.
    This is the txid: 2a7b4c0427a54803bcb5e0545eef2e065335cc534643ac27a2dbc3725bb23df0
    I opened ticket two days ago but still they didnt reply. For a financial service platform this much delay is unacceptable. Its obvious they are scam. Forums are full of complains. Stay away from them. We must find a way to file them to SEC and let those guys arrested!

20 Total Ratings with 3.00/5 possible Rating Points. Bitcoin Exchange