15 traits of Poloniex that makes it one of the prominent crypto exchange in the industry
Back in 2009 when a group of anonymous people naming themselves as Satoshi Nakamoto put forth Bitcoin, a peer-to-peer electronic cash system, no financial expert expected or had even predicted that the size of the cryptocurrency community would reach such immense scales. However, it is now a fact, that the cryptocurrencies have become one of the fully fledged professional disciplines amongst the various other business models.
Cryptocurrency exchanges provide a convenient platform to the traders as well as the investors to buy or sell their crypto assets. It is estimated that there are almost 1600 cryptocurrencies available and hence to manage such amounts of cryptocurrencies, the cryptocurrency exchanges must regularly keep updating themselves with the latest technology in order to meet the requirements of the users.
The best suitable cryptocurrency exchange for a particular user depends on his expertise in the field. Different kinds of exchanges are available for the newbies in the field and for institutional investors as well as full-time traders a dedicated and professional cryptocurrency exchange is available. There are a number of cryptocurrency exchanges throughout the world, amongst which Poloniex is one of the most prominent one in the United States. Some of the key characteristic features that make it, the way it is, are as follows.
- Founded in January 2014 by Tristan D’Agosta, the cryptocurrency exchange has been consistently operating since then with its headquarters at Wilmington, Delaware.
- Poloniex is at the 37th position, according to coinmarketcap, amongst the other cryptocurrency exchanges.
- The cryptocurrency exchange managers almost $70 million worth of daily transaction volume with 100 tokens available.
- Immediately one month after its initiation in January, the company was acquired by Goldman Sachs Group Inc. backed Financial company named, Circle.
- In March 2014, the cryptocurrency exchange was exposed to a hack which resulted in the loss of almost 12.3% of total Bitcoins the company held at that time.
- That resulted in the stoppage of services for a day and the company took full responsibility of it and reimbursed the whole amount to the customers within next few months.
- The cryptocurrency exchange provides advanced trading tools for its customers in order to come to a conclusion about the current market conditions.
- The cryptocurrency exchange also has a 24/7 monitoring system in order to track any suspicious activity.
- All the cryptocurrency assets are stored in a secured cold storage system of the exchange and only the required amount is taken from it during the trading.
- The cryptocurrency exchange is also regarded to be one of the most preferred ones for trading a number of Altcoins, prominently Litecoin.
- The exchange is specialized for trading only between a number of cryptocurrencies but not with the Fiat currencies.
- Due to the nonexistence of any Fiat currencies in the cryptocurrency exchange, one doesn’t need to worry about the regulations across various countries.
- The cryptocurrency exchange is also specialized in Margin Trading where the customers can lend money to someone else and do the trading. It offers a peer-to-peer service to do the same.
- For enhanced security, the exchange also offers a two-factor verification procedure to be completed by all its users.
- For its sustainment, the cryptocurrency exchange levies some transaction fees. The transaction fees decrease as the trading volume increases.
The key difference between any Financial Institutions like a bank and cryptocurrency exchange is that the cryptocurrency exchange doesn’t use a fractional reserve banking system. The customer’s fund in the cryptocurrency exchange is completely in control of the customer and not to exchange. One disadvantage of the exchange is that the cryptocurrency exchange has poor customer service.
According to data, there have been instances, where the problems of a customer are not resolved for almost 90 days. The FAQ section on the company’s website provides answers to the most common doubts that arise among the people and hence eliminates confusion and ambiguities of the customer. The inability of the cryptocurrency exchange for the conversion of the Crypto assets into Fiat currency is regarded as one of the main drawbacks. Regardless of which the trading tools that the exchange provides with reference to the trading pairs between cryptocurrencies, makes it the preferred option for investors and traders.