Why Liquidity Matters? How Poloniex's Large User Base Benefits Traders

Exchanges are very important in the cryptocurrency industry since they allow people to purchase, sell, and trade a wide variety of cryptocurrencies. Poloniex is one such exchange that has been around for quite some time. Since its founding in 2014, Poloniex has become a reputable cryptocurrency exchange. In this post, we will examine Poloniex from the ground up, exploring its history, characteristics, and arguments as to why it should be considered by everyone interested in investing in cryptocurrencies.

Poloniex was founded in 2009 in Wilmington, Delaware, and its current CEO is Tristan D'Agosta. From its inception, the marketplace served as a P2P trading platform where users could buy and sell Bitcoin directly with one another. It has developed into a full-fledged exchange with a diverse selection of cryptocurrencies over time.

The intuitive design of Poloniex's user interface is a major selling point. The exchange is well-liked by its users because of its user-friendly layout. The user's portfolio value, order book, and transaction history are all accessible in real time via the dashboard. Trading patterns may be easily analyzed because to the platform's support for many chart styles, such as candlestick, bar, and line charts.

Margin trading and lending are two of the sophisticated trading services that Poloniex provides its customers. It is possible for users to borrow funds from the exchange in order to engage in margin trading, and it is also possible for users to lend their bitcoin to other traders in exchange for interest. These additions are great for seasoned traders who want to enhance their earnings.

Poloniex's security measures are one of its distinguishing characteristics. The safety of customer cash is a top priority, hence the exchange has added many safeguards. Two-factor authentication (2FA), which requires users to enter a code given to their mobile device, is one such security measure used by the site. Moreover, the network stores a large percentage of its customers' assets in cold storage, making it extremely difficult for hackers to gain access to those cash.

A mobile app for Poloniex may be downloaded for free on both Android and iOS smartphones. With this software, users may manage their cryptocurrency holdings and execute trades regardless of where they happen to be. You may check out market charts and place trades, just as on the online interface, right from the convenience of your mobile device using this app.

Poloniex is a leading exchange due to its high liquidity. The exchange sees over $50 million in daily trading volume, making it a prime venue for investors buying and selling substantial quantities of bitcoin. In addition, the site has a sizable user base, so there's always someone to make a deal with.

The fact that Poloniex can only be funded with bitcoin is one of its major drawbacks. So, those who do not already possess cryptocurrency will need to do so before trading on Poloniex. But, the exchange has teamed up with a payment processor known as Simplex to make it possible for customers to use their plastic to buy cryptocurrency.

Poloniex may be inferior than other exchanges like Coinbase and Gemini since it does not offer as many digital currencies. But, the exchange has shown its dedication to growing its portfolio by adding numerous new currencies in recent years. These coins include Dogecoin, Polkadot, and Uniswap.

Reference/Source; Crypto Potato