What Is Poloniex? | Investopedia

Britcoin As digital currencies have become increasingly popular in recent years, investors have found new ways to conduct business in the space. New startups, apps, modes of fundraising, tokens and currencies themselves have all entered the market at a rate that is sometimes astonishing. The industry has changed quickly in its short history, and that has led many investors to be cautious when it comes to potential security risks.

Founded in earlyPoloniex has emerged as one of the most important and polarizing names in the world of digital asset exchangelargely for its relationship with user and transaction security. And how does it relate to the broader world of virtual currencies? Put simply, Poloniex is a digital asset trading service. It is a type of exchange through which users can transact in different digital currencies around the world.

In this way, Poloniex is very similar to any of an ever-increasing number of digital currency exchanges headquartered in various countries. What makes Poloniex different from the way many other exchanges are structured, however, is the fact that it is designed as a pure digital-currency-to-digital-currency exchange. Users may only transact in cryptocurrencies. In the case of some exchanges, users can buy or sell cryptocurrencies with or in fiat currency.

This is currently not the case for Poloniex; all exchanges are done via other cryptocurrencies. Whereas most digital currency exchanges allow users to buy into a cryptocurrency with fiat currency of some type or another, with Poloniex, users must already own at least some quantity of one of the digital currencies on offer in order to participate in the exchange market.

While this may seem on the surface to be a hindrance, many cryptocurrency users have nonetheless flocked to Poloniex for the variety of currencies that it includes in its list of offerings. Poloniex has experienced numerous redesigns and expansions since its initial launch. The service now also provides technical analysis and user support in addition to its original trade functions, as well as an expanded range of trading features.

About the author


View all posts