The bull market is in the air as digital exchanges roll out new features in anticipation of the influx of new retail traders. Just recently, CEX.io expanded its operations to the U.S. to target dissatisfied Coinbase users. Whereas, Circle-owned Poloniex recently announced that its customers can supercharge their trading experience by allowing them to deposit and withdraw funds using their bank accounts. On top of that, the exchange also enables consumers to buy bitcoin using their credit or debit cards.
The crypto-to-crypto exchange has seen its market share plunge from the heights of initial coin offerings (ICOs) in 2018. Crypto data company Nomics reveals that Poloniex currently sits at No. 9 in terms of trading volume. The digital exchange has managed to garner only 0.34 percent of the trading volume year-to-date.
Previously, Poloniex customers needed to own bitcoin or other cryptocurrencies to start trading on the exchange. This greatly restricted the entry of new users, especially retail traders who are new to cryptocurrency trading. If they wanted to trade on Poloniex, they needed to buy crypto tokens from other exchanges and then make the transfers to their Poloniex accounts.
The troublesome process discouraged many people from trading in the Goldman Sachs-backed exchange.
The recent update exponentially improves the entry of new users. By allowing customers to link their bank accounts, users in more than 80 countries can simply deposit fiat currency into their Poloniex account and get it converted into USD Coin (USDC). Consumers can immediately trade their USDC for 17 cryptocurrencies of their choice, including large-cap coins such as bitcoin, Ethereum, and Ripple.
When customers are ready to withdraw, they can simply send their USDC to their bank accounts. Their USDC will automatically convert to fiat currency at the appropriate conversion rate.
Poloniex users have a weekly limit of $50,000 for deposits and $25,000 for withdrawals. However, these limits can be removed depending on the customer’s demand.
For users who wish to directly buy bitcoin, the cryptocurrency exchange has partnered with Israel-based payment processor Simplex to facilitate the process. This enables users from over 60 countries to purchase a minimum of $50 worth of bitcoin on Poloniex. The service comes with a 3.5 percent fee or a $10 charge – whichever is higher.
Therefore, if you purchase $50 worth of bitcoin, you’d have to pay the $10 charge as it is greater than the 3.5 percent fee of $1.75. On the other hand, buying $300 worth of bitcoin would incur a 3.5 percent charge of $10.50.
Circle-owned Poloniex is looking to recover its market share. At the same time, it anticipates the influx of new users in the incoming bull cycle with some crucial updates. Users in 80 countries can connect their bank accounts in order to deposit and withdraw funds on the digital exchange. In addition, credit and debit cardholders in over 60 countries can buy bitcoin on the exchange via Simplex.
Can the crypto-to-crypto exchange regain its former standing among its peers? That remains to be seen. But the rollout of these new features is a big leap in the right direction.
Last modified: June 23, 2020 2:46 PM UTC