Signing up for an account on Poloniex is easier than on most other major digital asset exchanges. While it observes some level of Know Your Customer requirements, the process is less stringent partly due to the fact that the exchange accepts only crypto deposits.
Users are only allowed one account, and registering more than one could result in suspension or expulsion from the platform. Each account, however, offers exchange, trading and lending services. You automatically have access to all three services when you sign up for any of them.
The exchange service facilitates the movement of value from one crypto to another. On the other hand, the margin trading service enables you to leverage your cryptos and earn gains from price changes.
If you are risk averse but still want to make a profit on the platform, you can put up your cryptocurrencies for others to borrow and trade with. In exchange, you will receive a guaranteed interest rate.
When you engage in margin trading, you essentially have access to the three sections available on Poloniex. You access exchange, a margin trading and a lending/borrowing section. You can borrow funds from the lending section to invest through the margin trading section.
In the event you want to move your value to another type of crypto, you will need to use the classic exchange section. It is also through the exchange section that you make deposits.
When compared to trading platforms such as Coinbase’s GDAX, or Bitstamp/Kraken, I feel that Poloniex is the easiest to start using. Once your signup is complete (this takes less than five minutes) you are ready to deposit and start trading. The most differentiating feature from the rest of the trading platforms, however, is the fact that Poloniex offers more risk-averse crypto holders the option of lending out their coins.