Poloniex passes over fire following a major security breach that stole almost 12% of its bitcoin. The hack back in 2014, the broker and website are steadily rebuilding its image, reputation regarding the security front.
As a result, Poloniex today sound security protocols providing trust for its customer. Mostly, the deposits are hoard offline. The exchange is also operating an auditing program. Now, it’s their responsibility to report and take down the suspicious activity.
It enables 2-factor authentication, which conveniently helps to encourage user account security. The privacy topic is subject to major debates, so a user needs to dole out lots of personal information while moving to the Level 2 verification.
The Poloniex website has three major options for a user- Buy, Sell and Trade. Here is a step by step procedure on how can you buy, deposit, sell, and trade on this exchange:
In order to begin making a trade, you need funds in your account. Poloniex offers a large number of coin wallets into which you can make a deposit. Please remember that only crypto-to-crypto coin transactions are supported and some of these coins have a minimum deposit amount.
(NOTE: If you’re also interested in learning about withdrawing coins, please refer to the article
The markets are divided into tabs and several coins are listed under each tab with the latest prices quoted. By picking a coin listed on a specific tab, you select a trading pair to buy or sell. In the example shown below, the trading pair selected is ETH/ BTC where a user can buy or sell ETH in exchange for BTC. You can trade on either a desktop or a mobile device.
To buy or sell a coin based on the trading pair you have selected (e.g. ETH/ BTC), go to the appropriate box and input the desired price and the amount of coins. Below is an example of a user buying ETH in exchange for BTC. You can input fields using 3 methods:
To complete your request, hit the ‘Buy’ button. Once you have placed an order, the system will look for a counter-party willing to sell at or below your ask price. If your ask price is lower than the lowest price that sellers are offering, your order will go into the order book as an open order until a new sell order becomes available where the price either matches your ask price or is lower than your ask price. Then, your order will fill at that time.
Once your order is filled, it will appear as one or more trades under Trade History. Scroll down the exchange page for the selected trading pair to get to the Trade History section. You can view your own trades in the My Trades tab.
How to do trading in Poloniex
Now that we know how to make a deposit and we know a bit about the interface, it is time to make our first trading with Poloniex.
What we should do is simply select a currency in the “Market” in the “Exchange” section. Once we do this, we will be taught all the cryptocurrencies with which we can make a change. The broadest market is bitcoin (BTC) but we also have ethereum (ETH) XMR and USDT. These would be the main currencies of the platform and we can identify as secondary currencies all those with which we can trade.
Once we have selected the currency for trading, we must select the currency we want to buy with it. We do this by clicking on it in the “Market” section. Afterwards, the main graph will be changed to show us the behavior of the selected currency and it will also show us the value of the same according to the main currency of the market. That is, if we are in the BTC market and we are going to buy ETH, we will be shown the value of the ETH in BTC. Just below the graph will appear a purchase window and a sale window.
We only need to place the amount that we are going to acquire, for example, ethereum in the purchase window and that’s it. This type of operations, unlike the deposits, if they are credited instantly by subtracting a feed of less than 2% applied by the broker.
To sell the process is exactly the same, only instead of using the shopping cart, we will use the sales one that appears below the main graphic. We place the amount of the currency that we are going to sell and we are credited with its equivalent to the value of the main currency of the market.
Obviously to start earning money it is necessary that you have financial knowledge about the behavior of the cryptocurrency markets to take advantage of the moments of purchase and sale. However, it is not an impossible task. With a little study time you can begin to operate knowing better the risks of each market and taking advantage of them.