[This is a sponsored article with Poloniex.]
Disclaimer: Poloniex is not a registered recognised market operator under the digital asset exchange category by the Securities Commission Malaysia, therefore they have no license to operate in Malaysia. This content is for information purposes only, do not take this article as financial advice. Before making any key financial decisions, please ensure that you perform the necessary due diligence.
When dipping your toes into cryptocurrency trading for the first time, many crypto veterans recommend picking the right crypto exchange platform.
There are a number of things to consider, such as the number of tradeable cryptocurrencies available, the transactional fees, how secure it is, and how user-friendly the platform is.
The age of the crypto exchange platform plays an important role too, as older platforms are perceived to be more trustworthy compared to existing platforms that were launched not too long ago.
One example is crypto exchange Poloniex. Here are 3 features the platform has that might benefit the crypto trading community.
1. An ever-growing number of supported currencies
A platform that supports many trading options provides more investing freedom to the users as they can convert them to other up-and-coming currencies quickly.
Having a mix of different cryptocurrencies in your portfolio is never a bad thing, as these currencies were developed with varying functionalities in mind.
For example, while Bitcoin (BTC) is mainly used for transferring money, the Ethereum blockchain uses Ether (ETH) to pay for gas fees, which are used to pay for any processes done on the blockchain. These include minting non-fungible tokens (NFT), creating smart contracts, and more.
Another example is the MATIC token used to access Web3 applications built on the Polygon network with much lower fees and faster than the conventional decentralised applications (dApps).
So, if you own BTC but would like to mint NFTs or use the Polygon network, you can trade your BTC for ETH or MATIC to use those services.
2. Low trading fees across its pricing tiers
Another thing to consider is trading fees, which are taken from each transaction you make on the crypto exchange platform.
In 2021, the average trading fee on 30+ crypto exchanges was around 0.18% of the total transaction, which can be lowered if you have a much higher transaction amount.
However, even with the most expensive tier, Poloniex charges 0.155% of the total transaction, and the fee can be lowered further with a higher-value transaction or by using TRX, the token of the TRON ecosystem.
With lower transaction fees, you can make more frequent trades without incurring a higher cost.
3. The option to forgo KYC requirements for new users
To start trading on some crypto exchange platforms, they usually employ the know-your-customer (KYC) policy, which generally requires the users to be verified via their National Registration Identity Card (NRIC).
Some platforms like Poloniex are now starting to offer non-KYC accounts called Level 1 accounts that do not require any form of identification other than a registered email address and password.
Users can also start their investment journey immediately, instead of waiting for their identities to be verified before being able to trade.
The account has access to several services such as Spot trading, Staking, Futures trading, and buying Bitcoin with cards, with some limitations.
Note that these Level 1 accounts also come with limited functionality though, such as only allowing users to withdraw only up to US$10,000 a day, or up to US$50,000 a day if you enable 2 factor-authentication (2FA).
To upgrade your account to Level 2, you must complete all the KYC checks. Your account will have the previous restrictions lifted, and your maximum withdrawal per day will be increased to US$1 million per day.
Using eight years of experience thus far, Poloniex has plans to improve the crypto exchange platform further. These improvements include a new trading system to enhance trading speed, price-matching, improved API latency, and security for a better investment experience.
They have also just launched Poloniex Global Tour which aims to share more latest news and trends in the blockchain industry.
They want to run more campaigns with attractive prizes to reward existing and new users in the future too.