Poloniex Review: Why Users are Switching from this Exchange
Poloniex is a top 10 cryptocurrency exchange in terms of trade volume, but recently it’s been losing market share to competitors. In this Poloniex review, we’ll give you a rundown of the exchange and explain why users are switching to other options.
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- Launched in 2014
- Based out of Wilmington, Delaware, USA
- Cryptocurrency only exchange, meaning you can only deposit, withdraw, and trade crypto. No fiat currency support.
- Supports trading for over 65 different cryptocurrencies.
- Reports of very poor customer support, some users claiming it took months to resolve simple issues.
- Trading Fees: Maker-taker fee schedule, with a maximum fee of 0.25%.
- Official Site: Poloniex.com
As Bitcoin and altcoin prices exploded in mid-2017, it was common to see Poloniex with the most daily trade volume of any exchange.
The image below shows 24 hour exchange volume according to coinmarketcap.com on June 1st, 2017 (using Internet Archive’s “Wayback Machine”). On this date, Poloniex had nearly three times the amount of trade volume 2nd place Coinone (a Korean Exchange) had.
Nowadays, it’s rare to see Poloniex in the top five rankings of daily trade volume. The exchange is also usually behind their main competitors Binance, Bittrex, and HitBTC
So, what led to this drop in Poloniex’s market share?
It’s likely that the biggest factor was the poor customer support offered by Poloniex. Users flocked to community forums, like Reddit, complaining that Poloniex customer support was taking months to resolve issues or even to respond to complaints. It got so bad, that NEWSBTC wrote an article titled, “A 90-day Pending Support Ticket on Poloniex is the new Normal”.
Fed up with how they were treated by Poloniex, many users switched to rival Bittrex. With the launch of new competitor Binance in July of 2017, altcoin traders now have two better options than Poloniex for trading a variety of alternative cryptocurrencies.
While customer support was likely the biggest factor, there are other factors that likely played a part in the switch to rival exchanges, including:
- Binance and Bittrex have continuously added more new cryptocurrencies than Poloniex.
- Binance offers lower fees than Poloniex for the vast majority of users.
- Binance has less a strict verification and account creation process.
With customer support sometimes taking multiple months to resolve issues, we do not feel that Poloniex is a safe exchange to use. This time frame is clearly unacceptable and can be very costly.
In some situations, users have had their accounts frozen or had issues with missing funds. Even if these issues eventually get resolved, damage can be done in the meantime. For example, you could miss an opportunity to buy or sell a coin you expected to have significant price movement.
The bottom line is, the funds you deposit to a cryptocurrency exchange are yours and you should be able to quickly do what you want with them. This is not always the case with Poloniex.
Poloniex Withdrawal Limits Warning
By default, your Poloniex account will not allow you to withdrawal any funds. The exchange first requires you to verify your account.
If you do decide to use Poloniex, despite the issues discussed above, we strongly recommend first verifying your account before depositing any funds. You don’t want to end up in a situation where you have funds on the exchange, but can’t get your account verified to place withdrawals.
Poloniex’s customer support is among the worst in the industry and we do NOT recommend using this exchange.
- Community Trust Grade
- User Experience
- Available Cryptocurrencies
- Deposit/Withdrawal Methods
- Customer Support