Celsius allows you to borrow, buy and pay in over 30 cryptocurrencies.
It acts as a combination of a savings account or an investment portfolio. A level of centralization allows users to receive loans that are not collateralized on crypto assets.
Because it has a unique business model, trading crypto does not carry the usual risk. All deposits are covered up to $100,000,000 and there are no withdrawal restrictions, fees, or lockup periods. You can cash out anytime you want, whenever you need it.
It is important to note that Celsius has since been bankrupt.
What is Celsius?
Celsius is a cryptocurrency-based lending platform. It is a leading provider of services in this area since 2017, and has been operating since 2017.
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Cryptocurrency assets are volatile in nature. Buy and trade at your own risk.
73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Celsius Network, a crypto lending platform, offers various financial services. It is best known for providing Bitcoin loans at the lowest rates. This review also explains the native cryptocurrency token (CEL) that is used by the platform. The platform’s rise and the CEL tokens have been remarkable since 2018. This platform was founded by S. Daniel John, Alex Mashinsky and Nuke Goldstein. They operate it from London, UK. The company has raised close to $100 million in investment funds as of 2020.
According to Alex Mashinsky of Celsius Network, they are currently targeting crypto lending in the United States. It will be able to provide instant access to crypto-credit facilities in the US market. The platform will also allow investors to earn passive income. The platform’s ultimate goal is to make Bitcoin loans globally fungible and allow them to be used as funds for starting businesses.
Celsius offers excellent interest rates for Bitcoin deposits and collaterals to make Bitcoin loans easier and more accessible. This is a niche where only a few players are active. They offer the best Bitcoin loans to everyone.
It is simple to get loans through Celsius Network in popular cryptocurrencies like Bitcoin or fiat currencies like the US Dollar (USD coin). This platform offers a wide range of financial lending services at very low rates. With the Celsius web app or the Celsius mobile app, you can send cryptocurrency instantly to anyone.
How does Celsius work?
The Celsius wallet app is simple and easy to use. Although the website claims that it works in over 150 countries, it is worth checking if your country supports Celsius features. Since July 2021, U.S. users who live in New York and Washington have not been able to purchase any assets via the app. This change was made without explanation. CEL, the flagship loyalty-reward token of Celsius Network, is no longer available for purchase by U.S. residents.
To comply with Celsius’ KYC (knowing your customer) requirements, U.S. citizens must submit a Social Security Number and a Photo Identity. Once your identity has been verified, you will need to fund the account. You can fund your account using an automatic clearing house (ACH), which is a transfer of money from your bank. You can also directly buy any of the supported cryptocurrencies via direct deposit from one of Celsius’s partner trading exchanges.
Celsius doesn’t have its own trading platform so it uses a basic dashboard to track withdrawals, deposits and earnings. That’s it.
Earn interest right away and receive interest payments every Monday. You can also access a range of financial solutions through the app, including crypto-backed loans and withdrawals without fees. Additionally, you can send direct payments to your family and friends.
Celsius offers a hassle-free loan. Choose your loan amount, interest rate and payment plan. That’s all there is to it. There is no credit check, closing fees or background checks. Your crypto assets are used to back the loan. The best part is that your crypto assets on deposit stay in your wallet so you can continue earning even as you pay back the loan. It’s possible to keep accruing and not have to liquidate assets. This is a rare win-win situation in banking.
Celsius Security
Security is a top priority for the Celsius team. Six security certifications have been awarded to the Celsius team, including ISO/IEC and 365/24/7 monitoring. They also boast the most recent cryptographic innovations, cyber intelligence, incident response specialists, as well as the latest cybersecurity technologies. Multi-party computation is used to provide asset protection and top-tier security
It stresses that Celsius users must take security measures to protect their networks and personal holdings. These steps include:
- Activate two-factor-authentication on the Celsius mobile app
- Whitelist your crypto withdrawal addresses within a mobile app
- Activate the HODL mode – A safety feature that is unique to Celsius, which blocks any withdrawals while it’s active
- Your HODL code can be stored offline
- SIM swap attacks can be prevented from your accounts and personal email. Use non SMS-based two-factor-authentication (like Google Authenticator app)
- You should use a unique email address that you won’t be able to use with other services
- Use Wi-Fi only in private or unsecure areas
- Use shared or public computers and devices only
- Secure your device with a strong, unique password
- Use an encrypted password/key manager
- When you are done with the apps, log out and close the session
Celsius Crypto Offerings
Celsius has a wide range of cryptocurrency offerings, which is one of its main advantages over other cryptocurrency lending platforms. Investors have the option to lend or borrow in many stablecoins, Bitcoin and Ethereum, as well as many other altcoins. The digital asset used to earn interest is the basis of the income earned. Users will receive interest on the cryptocurrency they use. You should therefore consider the future value and not just the interest rate on the platform when lending cryptocurrency.
The app allows you to purchase coins via ACH transfer, debit/credit cards purchases, or SEPA transfer. The platform currently offers more than 30 coins.
CEL tokens are Celsius’s currency. However, U.S. residents cannot yet purchase them. Your earnings are calculated each Friday based on Celsius’s interest, your loyalty level, and which cryptocurrencies you have.
Celsius has a loyalty program with four levels. Your interest rates and other benefits will be determined by your tier. Your portfolio’s CEL tokens percentage determines which loyalty tier you are.
- Bronze Tier: Less Than 5% of your portfolio are in CEL tokens
- Silver Tier: 5%-10% in CEL tokens
- Gold Tier: 10%-15% of your portfolio will be in CEL tokens
- Platinum Tier: 15% of your portfolio in CEL tokens or more
These are the perks that come with each tier:
- Bronze: You earn standard interest and receive standard loan interest rates.
- Silver: A 10% Bonus on Your Earnings and a 10% Discount on Loan Interest Rates
- Gold: A 20% bonus on your earnings, and a 10% discount at loan interest rates
- Platinum: A 35% bonus on your earnings, and a 30% discount at loan interest rates
All users receive a 2% cashback bonus when they send CEL tokens using the CelPay feature within the app. You can still send any of the available cryptocurrency using the app, but you don’t get the cashback bonus.
Some notable cryptocurrency interest rates Celsius offers include:
- Polkadot up to 11.87% APY
- MATIC up to 9.522% APY
- AVAX as high as 7.53% APY
How to use the app
Download the Celsius app on the Google Play Store. First, download the elegant and simple-to-use Celsius Network mobile app for Android and iOS.
- Register for an account
- Verify your identity.
- Use your crypto.
Both Android and iOS users can download it. You can download the app from each store to earn a bonus.
Celsius Fee
There are no fees charged by the platform for services. The app charges fees for third-party services. There are no upfront fees like traditional banks. Some crypto platforms also charge hidden fees over time and up-front fees. Celsius is trying to disrupt the traditional banking system. Celsius recently revealed hidden fees that will allow members to feel secure in knowing their assets are protected from greedy and other fine-print fees.
Charges for Loan Origination
Lenders charge an origination fee of 0.5% to 1% on the total amount of the loan. This is part of their compensation for the loan. The Celsius Network does not charge origination fees.
Conclusion
Celsius Network is a great platform to help beginners start investing in crypto. Passive investors who want to buy and hold crypto are also attracted by this lending platform. You can withdraw your money at any time, with no minimum account requirements or hidden fees.
While you will still need to research the various currencies, the app is so intuitive that it allows you to start earning immediately while you learn.
