How To Do Your Poloniex Taxes?
Poloniex is a decentralized crypto exchange that offers more than 350 supported cryptocurrencies with low trading fees. Apart from this, the exchange offers lending, margin trading, and other crypto products.
Founded in 2014, this Delaware-based exchange is suitable for both beginner and expert traders. It allows its users to buy cryptocurrency with Visa, a bank account, Apple Pay, or Mastercard. If it's highly competitive fees and a wider selection of cryptocurrencies you are looking for, Poloniex is the right crypto exchange for you. In this guide, we will discuss what Poloniex has to offer and learn about Poloniex tax reporting as well.
Connecting your Poloniex Address to ZenLedger For Poloniex Tax Reporting
Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you'll see a table that outlines the possible methods. We support a direct API code import for many centralized exchanges, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the "Exchanges" tab of the "Imports" page. Select the exchange that you are looking to import, and instructions will be provided for that specific exchange!
Trading Experience on Poloniex
Poloniex accommodates several trading platforms according to the experience levels of different traders. For beginners, the crypto exchange has a simple buying and selling form, whereas experienced traders can use the active trading exchange.
Basic Crypto Exchange Form
As we just mentioned, beginners on Poloniex can start trading with a simple crypto exchange form. With this form, you can quickly purchase or sell cryptocurrencies using a debit card, bank account, or credit card. However, with the use of debit or credit cards comes processing fees. Whenever you buy cryptocurrencies with a credit or a debit card, you have to pay a 3.5 percent fee to a card processor called Simplex. There’s also an additional spread fee that you might have to pay.
Active Trading Platform
For seasoned traders, Poloniex offers an active trading platform equipped with advanced trading charts. On this platform, you can see your recent trades, open orders, an outline of your outstanding order book, and a quick trading form. Seasoned traders with experience in stock trading, crypto trading, or other active markets will most likely go to the active trading platform.
The Poloniex exchange also has mobile apps available for Android and iOS devices. These apps let you view your crypto balances, manage your account, and trade cryptocurrencies as well. You can download the apps from their respective app stores.
Even though Poloniex offers a lot of features, security is not its strongest suit. The security on the exchange has been brought to industry standards, but the exchange has a history of hacks and regulatory issues.
The exchange has been hacked on two occasions. Once in 2014 and again in 2020 and while it survived the incidents, you should be cautious about leaving a significant amount of funds on the exchange.
Opening a Poloniex Account
The Poloniex account opening process is the same as other crypto exchanges. You have to start by creating an account using your email address and choosing a strong password.
However, the Poloniex exchange has two levels of the verification process. To unlock all the features, you have to complete both levels of verification. When you finish Level 1, you get unlimited deposits, unlimited trading, and $10,000 in withdrawals. In Level 2, you get everything from Level 1 along with margin trading, $500,000 in daily withdrawals, and faster customer service in case you lock yourself out of the account.
For the verification process, you need to provide your contact information, a government-issued ID, and a selfie. One important thing to keep in mind is that Poloniex is not available to users in the US.
You can manage your account via Poloniex’s online dashboard and mobile apps. With the account dashboard, you can see and change your account settings, and view your primary account features such as futures trading, trading platform, and lending. An experienced trader with exposure to online banking or online stock brokerage shouldn’t face any trouble using Poloniex’s apps and dashboard.
Poloniex Tax Reporting
Poloniex tax reporting is easier with crypto tax software. The majority of investors use additional wallets, exchanges, and platforms outside of Poloniex, which makes keeping tabs on your transactions quite challenging. In such cases, ZenLedger, a crypto tax software can help.
You can import all your transactions into ZenLedger via a CSV Import or an API code import. After doing this, the software automatically calculates your gains, losses, and cost bases from Poloniex investing activity. After reviewing the transactions, you can use the software to report your Poloniex taxes.
The Poloniex crypto exchange supports a wide selection of cryptocurrencies coupled with low trading fees. Also, it is ideal for both newbies and seasoned traders as it offers separate trading platforms for both. With ZenLedger, calculating Poloniex taxes is incredibly easy. However, we recommend not leaving a significant sum of funds on the platform as it has been hacked in the past.