Is Poloniex legit? A brief overview of security measures
Poloniex is a very popular online platform for crypto trading, and many newbie traders choose it as their first exchange. Indeed, the platform offers attractive trading conditions and some really interesting passive earning options. However, the most important aspect of every crypto exchange is security: you need to make sure that your funds won’t be lost after a hacker attack or something like that. In this article, we are going to take a close look at Poloniex and whether you should trust it or not.
Poloniex is not really exceptional when it comes to its trading options. Sure, you can trade several dozen popular cryptocurrencies like BTC or ETH, but that’s it. However, there are also fiat pairs, which means you can trade fiat directly. Margin trading is allowed, leverage goes up to 1:100. The minimum deposit is $50 or 0.03 BTC, so you can start trading with just a small amount of money. The exchange uses a proprietary platform for trading and there is a single account option. As you can see, everything is as simple as possible.
Moreover, the exchange has a very user-friendly interface without too many conditions and various features. Poloniex also provides you with all kinds of crypto trading educational materials and 24/7 support. This is probably why so many newbies stay on this exchange for a long time. But what is really great about this exchange is its passive earning options. There are two: staking and P2P lending. Although they differ a bit, you don’t need to have any special skills to benefit from them, all it takes is a tap to start earning.
Alright, let’s get to our big question: Is poloniex legit? Well, it is considered a reliable platform by a good part of the global crypto community, but it is currently not regulated by any financial organization. Poloniex started out as a US crypto exchange in 2014, but failed to strike a deal with regulators. As a result, the United States Securities and Exchange Commission (SEC) charged them with illegal online trading in 2021. To solve this problem, Poloniex had to pay around $10 million and then moved its headquarters to Bermuda.
The exchange has also suffered a few hacker attacks. However, the platform makes sure that this won’t happen again by applying various security measures like two-tier verification or special protection against DoS attacks. Overall, Poloniex is relatively safe and legitimate.