Poloniex – avoid if you can as long as issues don’t get solved
Poloniex is crypto exchange based in the United States that supports more than 65 cryptocurrencies currently and has strong security with two-factor authentication. Poloniex is registered with the Financial Crimes Enforcement Network (“FinCEN”) as a Money Services Business (“MSB”), registration number 31000091844018. Clients funds are only used to facilitate trading through their account and the vast majority of customer deposits are stored offline in air-gapped cold storage. Poloniex offers a web-based platform, the charting package is average with several technical indicators available.
In 2014 Poloniex announced that about 12.3 percent of its Bitcoin holdings were stolen by a hacker. The hacker found a vulnerability in the code that takes withdrawals. Poloniex has provided compensation to their users, Poloniex owner Tristan D’Agosta said then: “I take full responsibility; I will be donating some of my own money, and I will not be taking profit before the debt is paid.” In spite of that, it can be said that the Poloniex network itself is relatively safe now. The verification process has two levels, the first verification level requires email verification, first and last name as well as country of residence. The second verification level requires personal information, address, phone number and a scan of the photo ID (passport, national ID, driver’s license) and a picture of the user holding Photo ID. Poloniex doesn’t support FIAT currencies, deposits are possible only in digital currencies. Some currencies have additional memos, fields, payload and minimum deposit requirements and clients should pay attention to these rules and exceptions before making deposits. There are some scam reports related to Poloniex. Some of them accuse the exchange of tempering with Ethereum Classic and making organized pumps and dumps. I have read on forums that some users complain about the rates because the rates vary, sometimes over 0.25% while sometimes as low as 0.01% daily. According to user experiences, Poloniex is also having issues with their withdrawal and their support. Some users are complaining that their withdrawal has been processed after two weeks or more. The customer support is only available on their desktop site at this time (the contact form). Some users have complained about horrible customer support from Poloniex staffers. Support requests sent to email address may be ignored and there is no live chat available at this moment. In my opinion, the customer support should be better and certainly needs some improvements. Poloniex certainly needs to increase their support staff in order to solve the support issues very fastly because newcomers might afraid investing with Poloniex. Some users are complaining that website of Poloniex is quite slow and it seems the developers did not do a good job here.
Experiences with Poloniex
Poloniex is quite overloaded at the moment, the support is answering very slowly and the website itself is quite slow and using lots of your computer’s resources. I did not find any incidents and complaints that make this exchange scam but Poloniex certainly needs some improvements to become a reliable partner. The user reviews about Poloniex are fairly mixed, complaints vary from a slow processing, lack of response by the customer support, problems with withdrawal.. In my opinion, there are lots of better exchanges available on the market. The following quotes give you a sense of what other traders think about this cryptocurrency exchange:
- Since their support takes over 60 days to respond to my tickets, I’m guessing they have no interest in fixing it
- My Account was hacked and the support service did not answer my message already a few months
- I haven’t had a single problem about Poloniex so far but just like you I always see people complaining about Poloniex
- I didn’t have any problem with Poloniex. But 2 days ago i try to open the long position in the margin trading. I closed my buy order (before I buy and start long position), but my loan was still active
- I have one bad experience with Poloniex, my account was hacked but I think it was my fault because I didn’t use two-factor authentication
- I have a negative experience with Poloniex few months ago when I tried to transfer a coin from another exchange. I waited many days but did not receive my coin so I sent them a ticket regarding my withdrawal but did not received any reply from them not until after 2 months I think