How to trade on the Poloniex Crypto Exchange?

Poloniex – that crypto exchangewhich offers trading in digital assets. Futures and spot options are available. Before you start trading on the exchange, it is important to learn the basics and strategies. Our website has materials on these topics. Also on the site poloniex.com there is a help center, where the administration of the service publishes articles for traders.

You can learn from them how to trade using the exchange terminal, how transactions are made, and what commissions the company charges. Before registering an account and making your first deposit on the exchange site, it’s worth studying all of these materials. They are available in several languages, including Russian. But it’s worth noting that there are fewer Russian-language articles, so it’s better to read the materials in English.

Futures trading

Before we begin futures trading on Poloniex, it is important to study the “Frequently Asked Questions” section of the Help Center. In it, the administration of the exchange described the peculiarities of this option of work. Futures contracts are agreements to buy/sell an asset at a predetermined price at a specified time. Perpetual contracts have no expiration date. There is also information about the types of profits and losses: realized and unrealized. The former are based on the difference between the entry and exit price of the position and take into account the trading fees. The unrealized ones are based on the difference between the average entry price and the cost of marking the position. Items explaining liquidation and bankruptcy are also available.

The Poloniex Help Center has a guide to futures trading. It contains a table with information about collateralized contracts USDT. They use USDT as margin to exchange Bitcoin contracts. The maximum leverage is 50x and 100x depending on the contracts supported. There is also a detailed overview of the exchange’s terminal:

• Trading: the ability to open / close different positions (short and long).
• Market: candlestick and market charts are available, as well as a list of recent orders and an order book, which will help to display all market changes.
• Positions: ability to check your open positions and order status.

Information is also published on how deals are made and how to process them. Step-by-step instructions are available:

• Registration and Login. First, you need to create a Poloniex account and log in to it.
• Enabling futures trading. There is a corresponding button in the terminal that enables this feature.
• Assets and balance. To check your account, you can go to the “Wallet” section in your personal cabinet. On this page you can check your total assets, including exchange, credit and futures wallet. To top up your balance for futures trading, you need to visit the top-up page and transfer USDT from any other wallet to your futures account.

Placing an order. To create an order, it is necessary to select its type, leverage and enter the amount. Several order types are available. Limit order is used to specify a preliminary buy/sell price. It is possible to specify the maximum or minimum price, on achievement of which the order will be executed. Market – an order to buy/sell at the best price on the market. A stop order is triggered when the price reaches the specified stop price. For futures, you can choose to set a stop price, order value and amount. Advanced settings are also available in the terminal, including “published only”, “hidden” and expiration date. These settings are offered only for limit and stop orders. With futures, you can enter a long or short position. In the first case, the trader will make a profit if the price of the asset rises, in the second – if it falls.

Position monitoring. If the order has been executed, it is possible to check the details in the section “Open Positions”. The table contains the following information: the number of contracts in the order, the entry price, the approximate liquidation price, the unrealized and realized profits and losses, the margin (the minimum amount that must be in the account to hold a position open).

Position closing. In the order area you can click the corresponding button. It is available to close a market or limit order. In the first case, positions will be closed at the current market value, in the second case you enter the price and size of the order.

Spot trading

The Poloniex website has a “Trading” section, where the “Spot” tab is available. It opens the terminal for placing buy and sell orders. In addition to charts, prices, and the ability to fill in fields to create an order, it allows you to go to the help center, a feedback document, and a page with information about trading fees. There are 14 materials available for review in the Help Center on spot trading. The transaction can be done through matching bids created by buyers and sellers. These options are available:

• Buy or sell through the order book. A transaction at the current price removes liquidity from the order book.
• Creating liquidity in the books by placing limit orders. Creating them at a price other than the market price adds liquidity to the book.

There is a step-by-step guide that shows how to cryptocurrency trading Poloniex:

• To make trades, you need to fund your account. The exchange offers many different wallets in which you can make a deposit. Take into account the minimum deposit amount.
• The markets are divided into several tabs, each showing specific coins with the latest quotes.
• To buy or sell assets based on the selected currency pair, go to the desired field, enter the price and number of coins. There are 3 ways to do this: manually entering the desired amount, selecting the minimum price available, and selecting a position in the order book.

Once the order is placed, the system will look for counterparties willing to sell at the user’s offer price. If it is lower than the minimum price offered, the order will go into the order book as open until a new sales order is available at or below the bid price. Orders may be open with no expiration date. All open orders for the selected pair are listed at the bottom of the page. If you need to modify an open order, you can cancel it and create a new one. After execution of the order, it will appear as a deal in the history.

Trading in a mobile app

Poloniex Exchange has developed a mobile application that offers deposit and withdrawal as well as cryptocurrency trading. The program allows you to see all the information you need to place an order. Step-by-step instructions:

• Open the Android or iOS app and log in to your account.
• Select a market in the upper panel and a pair from the suggested list.
• Click “Buy/Sell” to proceed with the checkout.
• On the next screen, enter the price/amount/total to complete the transaction.

What do you need to know?

Before choosing one type of trading, it is important to study their features. It is not enough to read the manuals in the exchange’s help center. You can study materials about cryptocurrencies, features and strategies on our website or watch thematic videos on the Internet. At the beginning, it is better not to deposit large amounts to the balance of the exchange. It is better to create orders for small amounts and analyze the trade in order to gain practical experience.