Poloniex is a crypto-to-crypto exchange which has been established since 2014. It is one of the more difficult exchanges to use and was acquired by payment processor Circle in February 2018. The exchange offers a wide variety of crypto-to-crypto trading. There are currently over 170 cryptocurrencies available to be traded against Bitcoin. Poloniex also offers trading against Monero and USD Tether. It is one of the only exchanges which offers trading against Monero. Margin trading is also available for traders. The funds for margin traders are provided by other users on the platform that can lend their funds for a small return. The lending aspect is one of the features which has made this exchange popular. Loans are typically for two days but when annualized, some loans have had high returns in the double digits. There are also many bot services which automatically renew loan offers in search for attractive rates.
The exchange is based in the United States and has a fee of 0.25% on trades. There are no fees for deposits or withdrawals charged by Poloniex but withdrawals are subject to the typical blockchain mining fee. In the future, Circle plans to make fiat trading available on Poloniex. Overall, Poloniex is an important exchange in the cryptocurrency ecosystem but is not the ideal option for beginners. Typically, cryptocurrency users with more experience will try out this exchange because of its lending feature and a wide variety of cryptocurrency. Users can also enable two-factor authentication to add an extra layer of security to the account.