Tips for Trading Cryptocurrency Using Poloniex
There are various mediums for trading cryptocurrency. Poloniex is one of the biggest decentralized exchange in the cryptocurrency market. It is gradually becoming the best cryptocurrency exchange around, as it allows margin trading as well lending. Poloniex is one of the most established and reliable US-based digital asset exchange.
The trading platform is extremely neat, user-friendly and stable. From the years of my trading experience in Poloniex, I have no major issues on loading and missing trades. The deposit and withdrawal procedure is intuitive and straightforward.
Apart from Bitcoin exchange, the website also allows users to deal with altcoins. Currently, Poloniex supports up to 90 altcoins traded against Bitcoin(BTC), Thereum(ETH), Monero(XMR) and USD Tether(USDT). This increases the chance of profitable trade. Also, getting started in Poloniex is quite simple. You just need to follow some basic steps as below.
Before, please head to http://poloniex.com and then start the first step.
The mainpage screenshot of Poloniex.com
Create an Account
The sign in and create new account screen
At the beginning you just have to create an account (see the top right corner), click on create account and then fill-up all your details and please do remember click the captcha to prove that you are a real person.
Check your mailbox for verification email and click on the necessary link provided. After that, you can log in and go to the ‘My Profile section.
The ‘your profile’ screen
Follow all the verification instruction on the left column on your profile page. You probably need few hours or up to one day for the verification procedure to be finalized. And, please take note that you can secure your account by setting up Two-Factor Authentication (2FA) for the account. This is not compulsory but highly recommended. The 2FA setup page is located left next to my profile tab.
Please refer here on official Poloniex guide on how to set up Two-Factor Authentication (2FA).
The ‘deposits and withdrawals’ page
You can also check on the history of logins, order, transactions, as well as deposit and withdrawal from the user dashboard. You can see the option on deposit and withdrawal on the ‘Balances’ tab. Poloniex currently only accepts bitcoins and other major altcoins deposits and withdrawals.
Keep the Track of your Deposits
You can store your different cryptocurrency wallets and choose one to convert for the trading. Once you try to convert your coin based wallet, a link will appear at the bottom of the page. You need to click the link and wait for a couple of minutes. Then under the ‘history’ section of the ‘Balances’ tab, it will show whether your transaction is completed.
After the verification and deposit, you are now ready to trade.
Poloniex employs a volume-tiered, maker-taker fee schedule for all trades. For more information on our trading fees, visit the Fee Schedule page.
There are zero fees for deposits. For withdrawals, there is a transaction fee required by each network as indicated on our withdrawal page. This is a network fee, not a Poloniex fee.
Choose the Market and The Main Trading Page
The altcoins table list
Poloniex provides you an easy option to choose the market to trade on. You can switch and check between Bitcoins, Ethereum, Litecoin, Zcash, and even USD Tether. There are up to 90 other altcoins are listed on Poloniex.
You can check the trading price of each of the markets and choose accordingly. The current trading price of all the cryptocurrencies are provided in the main trading platform. There is the bitcoin price (trading against USDT) chart along with real time prices of other altcoins.
Check the Graph
The main trading chart
The graph provided in Poloniex is very descriptive and vivid. It depicts the price fluctuations of all the current and previous prices.
The graph provides specific dates and figures and provides you a history of ups and downs of the bitcoin markets. You can choose the style of representation of the graph, as per your trading requirement. The chart also provided additional technical indicators such as Fibonacci Levels, Moving Average and Bollinger Bands to gauge the market momentum. The Poloniex graph only provide the candlesticks with various time frame options you can switch.
Buy order form
Below the main graph, there are the main form you can place an order. There three types of transactions : market buy, market sell and stop-limit. Poloniex provides you a special option for ‘Stop-Limit’. Here you can set parameters for your altcoin of your choice to buy or sell.
– Buy : Buying at the current market price
– Sell : Selling at the current market price
– Stop-Limit : executed at a specified price, or better, after a stated stop price has been reached. It is also refers as limit order to buy or sell at the limit price or better.
Once you define the limit in terms of amount or limit, then the action will be performed automatically once the value of your chosen cryptocurrency hits the mentioned predefined figures.
The ‘order book’ table below it simply show the current orders with the prices in the altcoin and BTC and the total sum denominated in BTC.
Market Depth screen
The marker graph is just a visualized version of depicted from the order books. It will help us assess the strength between the buyers against the sellers. The large blocks are usually refers as ‘wall’ by traders.
My Open Orders and Trade History
The final two sections at the bottom of the page.
The ‘My Open Orders’ will list down all the current open orders. And the trade history is the list of the latest transactions of that particular coins
Chat in the TrollBox
Here is another sub-section that you can check the vibe of the cryptocurrency exchange by reading the chats of the other traders in the site. The Trollbox is a live chat room wherein all the cryptocurrency traders of the site, post their comments.
There you go, a very simple guide on how to register and start trading cryptocurrency in Poloniex market. Poloniex is one the most trusted exchange in this crypto world. But it also has its disadvantages.
– High liquidity
– Easy UI
– Fast Server Verification is fairly simple with minimum disruptions
– The coins listed are generally more stable ones, hence reduced risks
– Margin and lending facilities
– Limited coins choice compared to other exchanges
– Support response is slow
– The chart is not the best i could find
One of the biggest strength of Poloniex is it allows margin trading which is not available in many exchanges. However, it’s stringent coin listing requirements caused it loses a lot of businesses to other smaller competitors that are leveraging these to expand.
Nonetheless, if you want a secured environment to trade, Poloniex is good choice. It is definitely one of the biggest and with most liquidity in the cryptocurrency market.