Poloniex: Part 4steemCreated with Sketch.

in #poloniexspotlight2 months ago (edited)

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In the ongoing week of #poloniexspotlight, I have already published Poloniex: Part 1, Part 2, Part 3. Today I will detail Part 4.

This publication will cover the comparison of Poloniex with the major platforms in terms of trading fees, trading pairs for STEEM, withdrawal fees, etc. It will also detail what should be a cost-effective strategy to trade STEEM in Poloniex.

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Comparison with other major Exchanges

Very often we come to know from the general crypto users that they trade their cryptos in majors exchanges like Binance, Bittrex, Poloniex, Huobi, etc and many others. In general, they make a choice based on better liquidity, low exchange fees, withdrawal fees, easy registration(No KYC), etc. In other circumstances, they choose an exchange based on the immediate priority and requirement.

Before going into details on "cost-effective strategy to trade STEEM in Poloniex", let's make a comparison of the Poloniex with other major exchanges in the context of trading fees, withdrawal fees, trade size, KYC/No KYC, etc.

I have selected Binance and Bittrex to compare it with Poloniex, as they are the common name as exchanges in Steem Community.

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From this comparison table, it is evident that the lowest barrier to entry in terms of registration is offered by Poloniex, as it requires just an email address(not even your name) to get started and withdraw cryptos up to 10,000 USD per day. In Binance the minimum requirements to get started are Name, Email Address, and Phone Number. Bittrex follows the complete KYC process.

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In terms of crypto withdrawal fees, Poloniex again stands out, as the TRX withdrawal fee is just 0.01 TRX(~$0.002), which means no fees as it is not even a cent. It also offers the STEEM/TRX pair, which other exchanges do not offer. So those who want to access the Tron ecosystem the ideal channel would be Poloniex. Out of the various base-currencies that are being offered by Binance, the base currency with the lowest withdrawal fee is BNB, with the minimum withdrawal fee 0.001 BNB, which means ~$0.03(approx), but not better than Poloniex's TRX withdrawal fee(~$0.002).

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In terms of minimum trade size with BTC as the base currency, Poloniex stands par with Bittrex, allowing as low as 0.0001 BTC($1.5). But in terms of USDT as the base currency, it stands out, it allows users to trade as little as 1USDT worth STEEM. Further USDT being a stable currency, Poloniex will be the ideal choice for many. Binance does not have a pairing of STEEM with a stable currency.

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How do I trade STEEM/TRX in Poloniex?

I have already explained how to trade STEEM/USDT in Poloniex: Part 2. So please go through that post. In a similar way, you can trade STEEM/TRX. Make sure, you have selected TRX as base currency before searching STEEM in the search box.

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Pairing available for STEEM in Poloniex
  • STEEM/TRX
  • STEEM/BTC
  • STEEM/USDT
Buy STEEM
  • Buy cryptos(BTC or TRX or USDT)with fiat in your regional crypto exchange (e.g. for Indian users, it can be WazirX, BitBNS, or similar other exchanges)
  • Transfer the cryptos from your regional exchange to Poloniex. (BTC or TRX or USDT)
  • Then swap crypto(BTC or TRX or USDT) for STEEM in Poloniex.
  • Transfer your STEEM from Poloniex to Steem Wallet(decentralized control)
Sell STEEM
  • Transfer STEEM from Steem Wallet to Poloniex Wallet.
  • Trade it for BTC or TRX or USDT in Poloniex.
  • Transfer cryptos (BTC or TRX or USDT) to your regional crypto exchange to trade it for fiat (e.g. for Indian users, it can be WazirX, BitBNS, or similar other exchanges)
  • Withdraw your fiat to your Bank account.

Important Note- You should use TRX as the base currency in buying or selling STEEM because Tron(the underlying Blockchain of TRX) is a scalable Blockchain and it incurs very low withdrawal fees(almost nil, 0.01 TRX- $0.002) in Poloniex.

You can also buy crypto using Card in Poloniex, but that might incur relatively higher charges compared to depositing fiat to a regional exchange, trading it for suitable crypto, and then transferring to Poloniex.

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Cost-effective way to trade STEEM for regional fiat currency in Poloniex

The cost-effective way of exchanging crypto is pivoted to the use of base currency and the associated withdrawal fees of that base currency in a crypto exchange.

For example in Poloniex, if you check the withdrawal fees of the base currencies TRX, BTC, and USDT. It is the TRX which is most cost-effective. Further, in the STEEM/TRX pair, you can trade as little as 100 TRX(~$2.7) worth STEEM. Being a top 15 coin in terms of the market cap, TRX is listed in all popular exchanges globally and many regional exchanges are also supporting TRX(including its deposit and withdrawal).

Which pair to choose for trading STEEM in Poloniex?

  • If the purpose of the trade is fiat, then you should trade STEEM/TRX, then transfer TRX to a suitable regional exchange to trade it for fiat.
  • If the purpose is to enter the Tron DeFi, you should trade STEEM/TRX
  • If the purpose is to get BTC, then you should trade STEEM/BTC
  • If the purpose is to get a stable coin, then you should trade STEEM/USDT. With USDT, you can also trade Futures in Poloniex & other stable coins use-case including lending.

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Use-case

@drqamu is a Steem user, hails from Kashmir, India, who regularly publishes his diary posts in Steem Blockchain. He wants to build his SP. For that, he wants to buy 15 USD worth of STEEM. Explain how does he connect to a regional exchange and Poloniex to trade 15 USD worth STEEM and to send it to his Steem account? How much fee in total he has to pay to realize STEEM in his Steem wallet? Which base currency should @drqamu choose?


In this use-case, @drqamu should choose TRX as the base currency to trade in Poloniex, because it incurs low fees and highly scalable. However, he has to make sure that TRX is supported in the regional exchange facility. WazirX is known to be a good exchange platform in India and TRX is listed in wazirX.

@drqamu wants to buy 15 USD worth of STEEM and transfer it to his Steem Wallet.

So he trades fiat for crypto in a regional exchange(e.g. wazirX), then transfer it to Poloniex, trade it for STEEM, and then finally transfer it to Steem Wallet.

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Let's see what are the fees that he needs to pay at various stages.

  • Load the fiat wallet in a regional exchange. For example- Deposit 15 USD(approx 1110 INR) to WazirX wallet- Deposit Fees incurred- 5.9 INR- $0.08. So the net amount becomes $15- $0.08= $14.92

  • Then trade fiat(INR) for TRX- Fees incurred- Trading fee 0.2%- to trade 14.92 USD, it will incur $0.03 fee. Net amount after trading= $14.92- $0.03= $14.89 worth TRX

  • Transfer TRX from wazirX wallet to Poloniex wallet- Withdrawal fee in wazirX- 5 TRX (approx $0.135)- So the net amount received in Poloniex wallet= $14.89- $0.135= $14.755 worth TRX

  • Trade TRX for STEEM in Poloniex Exchange market. The trading fee- 0.125%- to trade $14.755 worth TRX, it will incur $0.02. Net amount after trading= $14.755- $0.02= $14.735 worth STEEM

  • Transfer STEEM from the Poloniex wallet to the Steem account- Withdrawal Fee- 0.01 STEEM (negligible fees).

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So for 15 USD worth STEEM, the total fees that you pay in the entire process= $15- $14.735= $0.265. In terms of percentage, it is roughly 1.77%, which is quite competitive and well below the global average(3%). Please note that with a higher amount of trading, the percentage fee will significantly decrease.

In a similar way, @drqamu can also trade STEEM for TRX in Poloniex and then transfer it to wazirX to trade it for INR.

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Conclusion

Binance is a popular exchange, but the USDT & TRX pairing for STEEM is not available in Binance.

Poloniex not only offers STEEM/TRX and STEEM/USDT, along with STEEM/BTC, it also lowers the barrier to entry by lowering the minimum trade size(as low as 1 USDT) and allowing the micro traders to access this ecosystem. So it creates an opportunity for the regular small-scale traders, middle-class Steem community.

Thank you.

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Cc:-
@steemitblog
@steemcurator01
@steemcurator02

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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%".

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Hello @sapwood, this content is very good for steem community, for more especially those of us who would want to trade and invest well using poloniex. The post is said to be very detailed and I really found it very useful for me, though I have ever traded with poloniex but doesn't know much about into details like what this post explains.

Few noted points inferred from your extract:

"If the purpose of the trade is fiat, then you should trade STEEM/TRX, then transfer TRX to a suitable regional exchange to trade it for fiat."

I think it sounds good if one wants to trade steem and pay little amount of fees. That is why poloniex have so many trading options. But you have really explained how things work. Because many of us trade in without knowing the best way we can save a lot of money or beat high charges of fees.

Thanks very much for this amazing information you have fed our steem blockchain 🙏

#twopercent
#ghana

Yes, strategically choosing a base currency like TRX can save a lot of withdrawal fees, which exchanges generally charge high than the Network fees. But Poloniex makes it as low as 0.01 TRX which is even less than a cent, means no fee will incur when you withdraw TRX.

Thank you.

Thank you.

Nice entry @sapwood. I like the tiered system in Poloniex. With just your email, name and country, you can do a reasonable amount of trading on the exchange. Their fees are also encouraging too. One of the lowest you can get. Poloniex is really an exchange to use for me. You really took time to go into the details of trading with Poloniex especially with the use cases you mentioned. That was class.

#onepercent #nigeria #affable

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Poloniex truly offers the simplest sign up requirements as well as provides multiple pairs for steem trading.

The stable usdt coin is my favorite on the platform as it preserves the original value of your money and protects it from rapid fluctuations.

#onepercent #ghana #affable

A stable coin pairing always attracts investors/traders, and Poloniex furthers it by allowing to trade as low as 1 USDT worth STEEM.

Thank you.

Wow 😮 thank you soo much @sapwood much information let me go ahead and try this on my end 😊

Thanks @sapwood , let me give it a try.

Let me know about your experiences. If you find any difficulty, just tag me, I will help you, guide you.

Thanks.

Thanks alot . I completed smoothly what i was trying to.

Thank you for taking part in the Spotlight on Poloniex Contest.

Keep following @steemitblog for the latest updates.

The Steemit Team

Thank you so much.

Steem on.

Thanks for posting that, I was wondering how to use the trading website, and then I found this. I find the wallet a bit confusing, but your post explains at least some of what I would like to know.

Thank you. Glad that this helps your cause.

Steem on.