Poloniex vs Coinbase | Comparing Two Popular Exchange Platforms
Coinbase and Poloniex are two popular cryptocurrency exchanges, but this is essentially where the similarities end. Coinbase is a top-notch, beginner-friendly exchange for users looking to trade fiat and four of the most popular cryptocurrencies. By contrast, Poloniex is a declining platform with no fiat support that is used for trading among a wide range of alternative coins.
In this Poloniex vs Coinbase cryptocurrency exchange comparison we’ll explore the two platforms in greater detail while covering the following topics:
- Coinbase vs Poloniex: Side-by-Side
- Are They Safe?
- Platform Interface and Features
- Trading Fees
|Buy/Deposit Methods||Cryptocurrency Only||Debit & Credit Cards,|
Bank Transfers, Cryptocurrency
|Sell/Withdrawal Methods||Cryptocurrency Only||PayPal, Bank Transfers, Cryptocurrency|
|Purchase Fees||0.25% or less||~1.49 % via bank transfer|
|Supported Cryptocurrencies||65+||Bitcoin, Ethereum, Litecoin, Bitcoin Cash|
|Location||Wilmington, Delaware||San Francisco, California, USA|
|Customer Support||Very Bad||Good|
|Review & User Guide||Poloniex Review|
Coinbase is widely regarded as the most beginner-friendly cryptocurrency exchange. The platform allows users to easily trade fiat currencies for four of the most popular cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Based in the United States, Coinbase adheres to a variety of strict security measures and has a sterling industry reputation. The platform has served over 20 million customers and is the most popular cryptocurrency exchange in the world.
Poloniex is a cryptocurrency-only exchange launched in 2014, based in Wilmington, Delaware. Poloniex is used primarily for trading among a wide range of alternative coins, putting it in the same camp as platforms like Binance and Bittrex. Poloniex was once among the top 5 cryptocurrency exchanges in the world by daily trade volume, but is ranked 22nd today. How did Poloniex fall so far behind? Keep reading to find out.
Part of what has earned Coinbase its popularity and reputation is its first-rate security practices. These practices include:
- Coinbase separates customer funds from company funds and never uses them for operational purposes.
- 98% of customers’ cryptocurrency funds are stored in secure offline cold storage.
- Remaining online cryptocurrency funds are fully insured.
- US residents’ USD balances are FDIC insured up to a maximum of $250,000.
- Coinbase fully complies with U.S. regulations like The Bank Secrecy Act and The USA Patriot Act
In addition, Coinbase also gives users several tools for protecting their personal accounts including 2-Factor Authentication (2FA), required verification for new devices, and the ‘Coinbase Vault’, which provides users with additional security measures like time-delayed withdrawals and multiple signer options.
Poloniex, on the other hand, has a much spottier record when it comes to security. Users have reported numerous problems with the platform ranging from missing funds and frozen accounts, to withdrawals that were listed as ‘pending’ for weeks or months without any responses from customer support. While many of these issues were resolved eventually, Poloniex has since developed a reputation for itself as an exchange with sub-par security and customer service.
Coinbase was designed with the absolute beginner in mind. The exchange interface is clean and straightforward. The lack of clutter and intuitive layout makes it very easy to deposit or withdraw funds and make trades. It lacks some of the advanced features found on other platforms like its sister exchange, GDAX, but is an excellent choice for a first foray into cryptocurrency.
Poloniex’s user interface is nothing to write home about. Navigating the site is intuitive and most of the information you need can be found on the main exchange page. That being said, the screen feels a little more cluttered than competing platforms, and the color scheme is not particularly appealing.
Coinbase allows users to trade four of the most popular cryptocurrencies: Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
Coin variety is one of Poloniex’s few strengths. The platform currently supports 99 unique cryptocurrencies for users to trade between.
Coinbase users can make deposits using bank wires, bank transfers, and debit cards. The option to use a debit card is a welcome addition that most other exchanges do not support.
Note: Coinbase used to support purchases with credit cards as well, but has recently changed their policy.
Poloniex is a cryptocurrency-only exchange, meaning users can only make deposits and withdrawals in cryptocurrencies. Users looking to trade on Poloniex must first convert their fiat currency to cryptocurrency on an exchange with fiat support before transferring that cryptocurrency to Poloniex.
Coinbase is on the expensive end when it comes to fees. Users paying with debit cards will be charge a fee of 3.99%, and those paying with bank payments will be charged fees of 1.49%.
Poloniex follows a maker-taker fee schedule in which user fees decrease as their 30-day trade volume goes up. Both the maximum and minimum fees are significantly lower than Coinbase’s. The maximum fee is 0.25% and the minimum is 0.05%.
In this comparison we’ve covered the positives and the negatives of Coinbase and Poloniex. If we had to recommend one over the other, it would undoubtedly be Coinbase. There’s a reason why Coinbase is so popular: it provides an excellent user experience and is a great avenue for newcomers to begin cryptocurrency trading. The option to pay with debit cards is a particularly useful feature.
Poloniex, on the other hand, leaves a lot to be desired. It supports a wide range of alternative coins, which is great for those who are interested in altcoin investing. But Poloniex’s security and customer service issues are difficult to overlook, and users interested in altcoin trading would be better off using other platforms like Binance or Bittrex.