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Review on Poloniex by Juan Najas
As is common with all centralized exchanges, Poloniex keeps control of all…
As is common with all centralized exchanges, Poloniex keeps control of all private keys to the online wallets holding the users’ cryptocurrencies. However, most of the funds are in secure offline “cold storage.” The exchange offers browser recognition tools and two-factor authentication for account holders.
In 2014, the exchange was hacked and almost 12% of all customer Bitcoin deposits were stolen. The exchange immediately announced that all the funds would be reimbursed.
Given that Poloniex is a centralized platform, it is advisable to keep only the funds you need to lend, trade, or exchange at any given time. The rest of your currency should ideally be stored in offline wallets.
Pros
- Supports over 90 popular digital currencies. This is arguably the highest number in the industry. World’s largest Ethereum exchange by average volume in 2017. Provides extremely detailed charts and efficient data-analysis tools. Offers a high-volume margin trading and lending service for major crypto assets. Its services are accessible from anywhere on the globe. Charges low deposit and withdrawal fees compared to other exchanges. Stop-limit orders to reduce risk.
Cons
- Website loads slowly, compared to other cryptocurrency exchange sites. Customer service leaves a lot to be desired. Private key management is centralized, exposing funds to custodial risks. No advanced order types. Does not accept fiat currency. Was hacked in 2014. However, the exchange fully refunded the affected users. Requires users to create accounts and verify their identity for high-volume activity.
