Poloniex: Part 2

In the ongoing week of #poloniexspotlight, I have already published Poloniex Part 1, Today I will detail Part 2.

This publication might sound silly for seasoned crypto traders, but very useful for naive users. Further, the new users will have firsthand information on how cost-effective their trade is going to be with Poloniex and also how good it is for a micro-trader.

TRX extends the utility (of native token of an exchange platform) in Poloniex

Exchange platform's own native token is a very common concept these days, that is another way to ensure sustainable development of the platform, to attract the traders to invest in the native token so as to get a better discount rate on trading fees.

Among the popular exchange platforms like Binance, Huobi, Kucoin, etc who have their own native tokens, BNB(Binance) is no doubt an outperformer as a native token of an exchange platform, perhaps due to repaid growth of the platform within a short period of time. But more or less, the utility of such a token is limited to the platform only. BNB is an exceptional case.

Poloniex as such does not have any native token. However, with the recent partnership with Tron since Nov 2019, it now offers an additional discount on the baseline trading fees by 25% should the trader use TRX balance to pay the trading fees.

If you want to leverage this benefit & avail 25% discount on trading fees, you just need to opt-in to the trading fee discount.

How do I opt-in trading fee discount in Poloniex?

• Go to Setting (Assuming you are already logged in to Poloniex using your Email ID & password).
• Then Click on Trading Tier-Status.
• In the fee discount section, just enable that button(to Opt-in to the 25% discount)

Important Note- Make sure that you have sufficient TRX balance to pay the fees. You just need to have TRX balance in your Poloniex wallet to make this 25% discount work for you.

Here TRX is not the native token of the Poloniex exchange. Poloniex with the new partnership with Tron has introduced this new-use and utility to the TRX coin. TRX is also giving the same opportunity for the token holders to avail discounts on their trading fees.

This is significant, because:-

• TRX holders have another benefit, they can use the TRX balance to avail 25% discount on their trading fee tier.
• TRX is ranked 15th, with a 1.714 Billion USD market cap. So being a popular coin, it is ubiquitous in the exchange domain with better liquidity.
• The traders generally maintain a portfolio of popular tokens. However, high-frequency traders also go for the platform's native token to make their trading fee competitive, to ensure a better cost-effective exchange. Such a trader won't have to buy a native token of an exchange platform separately; just with TRX balance, they can enjoy the same benefit in the Poloniex platform.

Put simply, a coin like TRX(top 15 in market cap) is extending the same benefit of an exchange's native token.

Spot Trading in Poloniex

Before being able to trade in Poloniex, you need to send the coin to the Poloniex wallet. You can send it either from your decentralized wallet or from any other exchange platform.

Then you need to choose a suitable base currency(that pairing must also be available in the exchange). Swap it for the base currency. If your target currency is other than Base currency, you need to swap it once again to get the desired coin.

As per your requirement, you can use the coin for subsequent use such as "Trading it for fiat in a local exchange, For lending, and for other DeFi investment, or simply for HODL, etc".

How do I swap an asset for a base currency and/or a target currency

• Log in to your Poloniex account.
• Click on Exchange
• Choose the desired currency pair to trade(Assuming you have already deposited the coin in the Poloniex wallet). You can also search the coin by entering the coin name in the search field. For example, I have selected STEEM/USDT.
• Now you can see the order book, price chart, depth chart.
• Buy/Sell-- Enter the limit price(Market Maker), Amount. You can also directly select an available price from the order book(Market Taker).
• Then click on Buy/Sell.
• If the price that you entered is available in the order-book, then it will be immediately filled, otherwise, it will be listed as an open order(Market Maker). When a Market taker will respond to that price, it will be filled.

In a similar way, you can also swap the base currency for the target currency, should the target currency different from the base currency.

The best thing about Poloniex is that the minimum amount you can trade in USDT as a base currency is as little as 1 USDT, in the case of TRX as the base currency it is 100 TRX, in the case of BTC as the base currency it is as little as 0.0001 BTC. So it definitely caters to the micro trader as well.

The cost-effective pair is TRX. Because the withdrawal fee in the case of TRX is only 0.01 TRX(~0.00025 USD), negligible fee, not even 1 cent. So the best strategy will be to chose TRX as the base currency and then send it to your local exchange for fiat trade. TRX being a popular top 15 coin, is listed in almost all exchanges. In that way, you will make your withdrawal fees nil. That will make the net effective exchange rate quite lucrative.

Example,

You send 100 USD worth of STEEM in Poloniex. You trade it for TRX. 100 USD worth STEEM after trading for TRX will be 99.875 USD worth TRX(after applying trading fee- 0.125%). If you have TRX balance to pay the trading fees, then the same trading fee will be 0.09%, so the net amount will be 99.91 USD worth TRX after trading.

Withdraw TRX to your local exchange to trade for fiat. TRX withdrawal fee is almost negligible. A micro trader can easily trade as little as 2.5 USD worth STEEM in the Poloniex platform with TRX as the base currency.

Conclusion

Poloniex as an exchange platform with the recent partnership with Tron has already dropped the strict KYC policy and made it simpler than ever, allowing the users to achieve Level-1 with just an Email ID and Password. Further, the trading fee is also significantly lower than the industry average.

But looking at the wide list of Base pair currency, enabling users to trade as little as 1 USD worth crypto to trade, almost no withdrawal fees in the case of coins like TRX, etc sounds like a best-fit exchange platform for all.

Thank you.

Cc:-
@steemitblog
@steemcurator01
@steemcurator02

Unless otherwise stated, all the images, infographics, charts, tables, etc(if any) are my original works. Screenshots are taken from the Poloniex official exchange site.

---

The post payout is set to "Power Up 100%".