Poloniex and Coinbase are both popular platforms that cater to pretty much the same demographic. However, they ultimately also serve different purposes.
When you’re diving into the world of cryptocurrency trading, it’s important to choose the correct platform. As such, in this article, we’ll offer a detailed comparison of both Poloniex and Coinbase so that you can deter which one is correct for you.
PART 1: Poloniex VS Coinbase Key Features: What’s the Difference?
The major difference between Poloniex and Coinbase comes with the fact that Poloniex is a crypto-to-crypto exchange platform. As such, you can use Poloniex for trading in cryptocurrencies but it’s not ideal for beginners who want to purchase altcoins. Furthermore, in keeping with that, Poloniex also has over 70 cryptocurrencies available for trading, which is ideal for serious traders and provides a lot more trading pairs.
Coinbase is a lot better suited for beginners or those who want to simply purchase cryptocurrencies. You can purchase or trade in one of the three most popular cryptocurrencies and you can do so using a variety of payment methods, using fiat currencies. However, it’s not ideal for serious traders as it also draws a high transaction fee.
|Reviews||Poloniex Review||Coinbase Review|
|Exchange Type||Cryptocurrency Exchange||Easy Cryptocurrency Buying/Selling|
|Fees||0.25%||1.49% to 3.99%|
|Cryptocurrencies Supported||Bitcoin, Ethereum, Litecoin, and 68 oth-ers||Bitcoin, Ethereum, Litecoin|
|Payment Methods||Only Cryptocurrencies||Bank Transfer, Credit Cards, Cryptocurrency|
|Ease of Use||Good||Great|
|Limits||N/A||Up to $50,000/week|
|Check Website||Poloniex Website||Coinbase Website|
PART 2: Poloniex VS Coinbase Trading: Which one is better?
Coinbase only supports the most popular cryptocurrencies, i.e., bitcoins, ethereum, and litecoin. Poloniex supports all the major cryptocurrencies, but it also supports 68 other cryptocurrencies.
Coinbase supports the use of popular fiat currencies USD, EUR, and GBP. Poloniex, doesn’t support the use of any fiat currencies as it’s a crypto-to-crypto platform.
Coinbase is available in 32 countries across the world, and Poloniex is available in all the countries, depending on their domestic cryptocurrency limitations and laws.
The transaction fee in Coinbase varies between 1.49% to 3.99%. This range accommodates the transaction fee and the withdrawal and deposit fees. However, Poloniex is a lot more reasonable and it has a low transaction fee of just 0.25%.
PART 3: Poloniex VS Coinbase Trust: Which one is more reliable?
Coinbase is a San Francisco based company founded in 2012, and as such it’s one of the pioneering exchange platforms. Furthermore, it enjoys a vast public faith and trust, especially considering they’re backed by investors such as Union Square Ventures and New York Stock Exchange. As a US-based company, they are also liable to all of their strict security regulations and measures.
Poloniex was launched and founded in 2014, and as such they’re considerably newer in this field. Furthermore, they don’t inspire the same kind of trust as Coinbase because of the lack of transparency. In the case of Coinbase, we know where their headquarters are located and we know the details about the person who helms it. But in the case of Poloniex, we just know that they’re based in somewhere around the Boston area. We don’t even have any information on the founder of Poloniex, beside the fact that his name is Tristan D’Agosta.
In the graph below, you can compare the popularity of Coinbase against that of Poloniex over time.
Coinbase has never suffered a major security breach in all of its 5 years of functioning. Furthermore, they keep 98% of the funds in cold offline storage so that they never get lost due to a hack. The rest of the 2% is also insured with FDIC, and as such users would be compensated with up to $250,000 in case there’s a loss.
Poloniex also stores most of its funds in a cold offline vault. However, none of their funds are insured. In 2014, Poloniex did suffer a major security breach and they lost 97 BTC, however they reimbursed the affected individuals completely.
However, in case there’s a breach of a personal account, neither platform can be held liable. As such, the security of your account is your responsibility. To that end, both platforms offer 2-factor authentication for safety.
Cryptocurrency platforms in general have a pretty bad reputation in terms of customer support. However, Coinbase is the best and most efficient amongst all the other platforms. You can contact them via email and they generally respond in 24 to 48 hours. Furthermore, they’ve recently also introduced the phone call feature so you can talk to representatives over the phone.
Poloniex has a notorious reputation when it comes to customer support. In fact, a lot of users have been leaving Poloniex simply because they have a really bad customer support system. Even if you want to submit a ticket for support, you have to go about it through a separate signup form and login. Furthermore, they’ve apparently frozen a lot of customer’s accounts, delayed withdrawal, and they repeatedly ignore customer requests.
PART 4: Poloniex VS Coinbase Conclusion
Both Poloniex and Coinbase come with their own set of advantages and drawbacks. Coinbase is ideal for beginners however it’s not the right choice for serious traders and it offers very limited cryptocurrencies for trading purposes.
Poloniex offers a large number of cryptocurrencies, and they have a lot transaction fee, however they only support crypto-to-crypto transactions, which makes them unsuitable for beginners. Furthermore, they also have a terrible reputation in terms of customer support.
All of that taken into consideration, I would suggest you either use Coinbase, or look for a good Poloniex Alternative. You can also look through the top 20 cryptocurrency exchange platforms to determine which one suits your needs best.
Whatever you decide to use, please feel free to comment down below and let us know about your experiences!