Exchange trading is a fairly common practice in the financial world, and from the moment the first online exchanges began to appear, it gradually almost completely went online. The essence of trading and exchange trading is that people are professionally studying the patterns of change in the rates of various currencies. They earn by buying and selling currencies at different rates at different times.
Exactly the same principle applies on cryptocurrency exchanges. They appeared relatively recently, but they began to gain popularity very quickly and turn from local resources into large global sites with a multi-billion dollar turnover. One of the most popular and sought-after today is the Poloniex exchange.
A bit about cryptocurrency exchanges in general
The first cryptocurrency in the world - Bitcoin - appeared in 2009. She did not cause much hype at that time, so no one was interested in this technology for the first few years. Over time, the capitalization of the network began to grow at an incredible pace, new cryptocurrencies began to appear, and in order to ensure convenient circulation of all these funds, cryptocurrency exchanges began to be created.
Compared to conventional exchanges, the life span of even the largest cryptocurrency exchanges today is negligible. This is manifested in the fact that many of them are extremely unstable and cannot provide the proper level of security and reliability. New exchanges are blocked every day, they freeze user accounts, do not allow funds to be withdrawn, and so on. To avoid all this, you need to choose from the largest exchanges that maximize the safety of funds and trade security. These include Poloniex.
How did the Poloniex exchange come about?
Despite the fact that Japan is the official homeland of cryptocurrencies, a very large number of exchanges, exchangers and major market players are in the US market. Poloniex Exchange was founded in America in 2014. This project was handled by a team of experienced developers who very seriously approached the creation of the most convenient and safe resource for trading cryptocurrencies.
The result was impressive. The exchange almost immediately gained immense popularity due to its high stability of work and some indisputable advantages, which are worth discussing in more detail.
User Reviews and Exchange Benefits
If you pay attention to the reviews, Poloniex can rightfully be considered an exchange with the most loyal user base. This is due to the large number of advantages that provide the highest level of comfort when trading.
One of the main advantages of the exchange is the reduced size of the commission. This is probably the most significant factor for large investors. It implies that the larger the transaction amount between users, the lower the size of the commission. The largest commission Poloniex is 0.25%, which in itself is not very much. However, this rate gradually decreases with increasing transaction amount and in the end can reach 0.05%.
As a second advantage, a very wide variety of different currencies can be noted. The exchange supports almost all the more or less large tokens today, so it is very convenient to use it to track the exchange rate and prospects of young cryptocurrencies.
Of course, one of the main reasons that reviews about Poloniex are mostly positive is the high level of security. There is two-factor authentication on the exchange , which allows you to provide almost 100% guarantee of the safety of user data. As for protection against attacks by hackers and DDoS, everything here is also quite stable. For all the time there was not a single case where hackers could manage to somehow seriously harm the exchange and its users.
Margin trading
This item should be discussed separately, since this is not so much an advantage as a feature of working on the exchange. Margin trading implies that users can exchange loans with each other at certain interest rates. That is, any user can both give a loan, which in the future will help him earn money, and arrange it if he finds a suitable offer.
The system of margin trading is quite simple and transparent, it is only necessary to understand it once. Reviews of Poloniex most often say that this form of cooperation between users is very convenient and useful, which means that you can safely use it if necessary.
How to use the exchange?
First of all, it is worth noting that the Poloniex cryptocurrency exchange in Russian does not function. This means that for correct operation, the user will need at least a minimum knowledge of English. In fact, it is not necessary to be able to speak it, it is enough to know some terms that are often used in the trading process. If this is all right, you can start registering Poloniex accounts.
Account creation
In order to start working on the exchange, the user will need to enter some personal data. On the first page, you are asked to provide a working email address and come up with a password. Then a special confirmation letter will be sent to the mailbox. After the account is confirmed, you can enter it from the start page using your username and password.
This ends the process of creating an account, however, in order to gain access directly to trading, it will be necessary to go through the verification process. At the first stage, when a person is just starting to understand how to use Poloniex, it will be enough to enter your full name, city and other data that people usually fill out in various forms. This will allow access to trade in small amounts, which are enough for personal purposes.
If a person needs access to trading more serious amounts, the verification process will be a little more complicated. An identity card is required, most often it is a passport that is requested, and a photograph of a person with this certificate. Passing this level of verification is not so difficult, and it is definitely worth doing for those who intend to seriously engage in exchange trading. You don’t have to worry about the safety of your personal data, just as the exchange provides a fairly high level of security and confidentiality.
Trade
The interface of the site is quite simple and intuitive, although it is impossible to use the Poloniex cryptocurrency exchange in Russian. Most of the screen on the main page is occupied by the course chart of the selected pair. To the right of the graph is a complete list of available currencies, so the user can always choose the one that he needs and see a graph of its rate.
Using this field, traders determine the patterns in changes in cryptocurrency rates and monitor the dynamics for certain pairs. This information helps to make a conclusion about which currency is the most promising and which is best to sell until it has fallen in price.
Under the chart are the fields with which the purchase and sale takes place directly. Here, the interaction mechanism is quite simple: the user selects how many cryptocurrencies he wants to buy right now and carries out the transaction at the best offer. The table, which is located on the left under the exchange fields, just contains information about the most advantageous offers at a given time.
The table on the right, on the contrary, shows the demand for the currency pair that is now selected by the user. It is necessary if a person wants not to buy, but to sell a certain amount of cryptocurrency. Then he enters the desired sales amount in the corresponding field, focusing on the current demand in the table on the right, and his proposal appears in the table on the left. If the moment comes when this offer becomes the most profitable, the transaction is carried out.
Finally
This was all the basic information that is necessary to start trading on the exchange. As already mentioned, the reviews of Poloniex are quite positive, because it is certainly an excellent option for both experienced and novice participants in the cryptocurrency world.