Many cryptocurrency exchanges are competing with each other to take the leadership position. In that list, Bitfinex and Poloniex are two major exchanges that come in the top list having the highest trading volume. Many new coins and tokens try their level best to get listed in these exchanges to get more volume and become a leading cryptocurrency or token. Let’s have a detailed comparison between the two to know which one is better and will become the leader in this space.
Bitfinex – One of the World’s leading Exchanges
Bitfinex is one of the biggest exchanges in terms of trading volume. It has a very intuitive design and straightforward interface to trade. Many traders and trading analysts prefer Bitfinex over other exchanges. The Bitcoin and other cryptocurrency prices on Bitfinex are taken as standard price globally. High volume is very important for best bid and asks prices, and that’s why traders prefer to trade on big exchanges like Bitfinex.
The exchange is based in Hong Kong and has a daily trading volume of more than $1 billion. The exchange doesn’t support any fiat currency, but supports Tether (USDT) – a US dollar backed cryptocurrency that has value pegged at a dollar value.
Poloniex – Best Exchange for Altcoin Trading
Poloniex was launched in 2014 and is based in the US. The exchange was recently acquired by Circle, a company owned by Goldman-Sachs. Poloniex is an exchange that is well suited for altcoin trading. This exchange is also very user-friendly and has a very easy-to-use interface for trading. Since this exchange is owned by Goldman-Sachs, Poloniex wants to be the first registered exchange, fully compliant with SEC.
The exchange has a vast number of altcoin trading pairs, and it is best for trading altcoins. The wide range of altcoins pairing is helping the exchange to grow exponentially since the altcoin market is growing at a fast pace. The altcoin trading options available are Tether, Bitcoin, Ether, and Monero.
Another important feature of the exchange is its security. The exchange provides high security and is multilayered for sending or receiving funds. Also, the user funds are stored securely offline, and only the funds required for active trading are online. This minimizes risks and makes it difficult to hack the funds stored in cold storage. Users are allowed to enable 2-FA (two-factor authentication) for login and while sending funds one will get the email notification, and the funds are released only after the user confirms the email approval.
Bitfinex vs. Poloniex
Both Bitfinex and Poloniex are very big exchanges that are leading in global volume. It is important to compare the two exchanges for traders to analyze and choose the one that is best suited for their trading preferences.
Advantages of Poloniex over Bitfinex :
- Many altcoins pairs to trade and benefit.
- Liquidity is high especially for altcoins
- Very secure and impossible to hack.
- Going to be regulated exchange fully compliant with SEC
- Variety of altcoins to trade.
- The exchange is transparent since it is backed by Goldman Sachs.
The advantage of Bitfinex over Poloniex :
- Very high liquidity
- Very low fees
- The exchange has been hacked but is now very secure.
- Poloniex has poor support compared to Bitfinex.
- The website is fast and fluidic compared to Poloniex.
Both the exchanges add value to the cryptocurrency space since they are serving millions of traders and investors globally. Exchanges like Poloniex and Bitfinex are very important centers for pulling in liquidity into the crypto market. Even though both the exchanges have some disadvantages over the other, one needs to keep in mind that big exchanges like this are going to rule the world globally when Bitcoin and other Cryptocurrencies go mainstream.