Celsius Network Review
Lending programs and cryptocurrency interest accounts have proven to be all the rage in the blockchain space recently. These companies are enabling people to earn an interest by simply holding their cryptocurrency and offer low fee lending utilizing cryptos as collateral. Therefore, these companies are now replacing the greedy intermediaries that tend to steal money from people.
They offer lower loan rates and high interest rates on savings as compared to the other traditional alternatives. And Celsius Network is one of such platforms that have grown significantly over the last couple of years. Today, they help crypto holders to earn substantial passive income on their crypto holdings.
Celsius Network is currently one of the most popular cryptocurrency lending platforms. That said, in this article, we will discuss in this Celsius Network review what this crypto-lending platform has to offer. So let’s get to it!
Free 20 USD in BTC after a deposit of 200 USD or more
What is the Celsius Network?
Essentially, Celsius Network is a crypto lending platform that’s available on iOS and Android devices. And the same way you put your money in a savings account when you store funds in Celsius, you earn interest on your holdings weekly. How that works is quite simple, as all you have to do is first deposit one of the supported cryptos in your Celsius app.
Then, the company loans out the funds to institutional borrowers and retailers. When that’s done, you receive payments for your revenues that Celsius has gained from the loans every Monday. The company claims to return 80% of its revenues to the users. However, the functionalities of the Celsius app go beyond the simple interest payments.
Also, some loans are available through Celsius. All you need to do is decide which crypto to put as collateral, and you can take out a stablecoin or cash at a range of different terms. And unlike the traditional loan services, with Celsius loans, you don’t require a credit check. You get your loan approval in minutes.
And although we can’t say that the Celsius network is a wallet, it can receive and send all the supported cryptocurrencies via CelPay. You can send your cryptos via a message, link, or in-app directly. The good thing is that Celpay doesn’t charge any transaction fees.
Why choose Celsius Network?
Celsius Network aims to democratize and decentralize the borrowing and lending of money by taking the essential financial services. The best thing is that everything works in the best interest of the users. With that in mind, let’s take a look at some of the reasons why you should choose the Celsius network.
There are no minimum deposits
With Celsius Network, there is no limit to how much you can deposit to your account. That means, no matter the amount you deposit, you can start earning your interest. Celsius Network treats all clients equally, no matter if they have a deposit of $5 or $5,000. Although the profit will be proportional to your initial investment, at least you know you can start earning no matter the amount you have in your pockets.
No withdrawal fees (actually, no fees at all!)
The other most enticing thing about the Celsius Network is that it doesn’t charge any withdrawal fees. That means when making your withdrawals from Celsius, you don’t have to pay anything. Along with that, there are also no deposit fees, no origination fees, no early termination fees, and no transaction fees.
There’s no locking of your funds
This is one of most people’s favorite things about the Celsius Network. And it’s about to be yours too. Usually, most lending platforms will force you to lock in your cryptos to earn interest for a certain periode. However, that’s not the case with the Celsius Network. You have the liberty to withdrawal your funds whenever you want, hence you have full control of your funds.
There are no credit checks
On the Celsius Network, your history is not relevant. In this case, you are using your cryptos as collateral, and the loans you get will be based on that only. No credit checks means almost instant loans and no paper work.
Choose how you want to pay or receive your interests
With the Celsius Network, you have the chance to choose if you want to receive your interest in the crypto you deposited in or in CEL tokens. If you go with the CEL tokens option, you can get up to 30% more interest. And when paying your interest, if you use CEL tokens, you get lower interest rates. That’s because CEL is the native token of the Celsius network.
Continue reading this Celsius review to discover more about this app.
Free 20 USD in BTC after a deposit of 200 USD or more
How to create a Celsius Network account?
Creating an account on Celsius Network is a relatively straightforward process. Within minutes, you’ll have full access to your account. That said, here’s the step by step procedure to creating an account on Celsius Network:
- First things first, you need to download the application on your smartphone. The application is available on both iOS and Android devices.
- The next step is to tap on the Join Celsius button after you opened the app.
- You can choose to sign up with your Google, Facebook, Twitter, or email account.
- Once you’ve decided which account to use to sign up on the page, you will need to enter your details, including your name, email, and password.
- Next is that you have to click on the agree to the terms of use and privacy policy.
- You can enter the referral code: 18050945e2 to receive 20 USD for free when depositing 200 USD.
- To get the account up and running, you will need to enter a six-digit pin.
- For you to earn interest, you will need to deposit funds and also complete your KYC verification, and that’s it, easy as that!
How does Celsius Network work?
There are many different ways how you can use Celsius Network.
Free 20 USD in BTC after a deposit of 200 USD or more
Cryptocurrency lending (earn a passive income while holding crypto)
When we talk about how you can make money on the Celsius Network, this will be your primary income source to generate a passive income. For crypto lending, you will need to deposit the desired cryptocurrencies in your Celsius account. When that is done, you will automatically start receiving interest from the borrowers on that network.
In fact, the company will start using your coins to lend people in the network. They will then redistribute at least 80% of the acquired interest to users that have deposited digital assets in their Celsius Network digital wallets.
The interest rates can change over time, but currently they’re really good in comparison to the competition like BlockFi. The highest interest rate is currently 21.49%, to get this rate you need to be platinum level. You will receive a higher interest when you select the CEL token as a payment.
The Earn page on the website allows you to calculate your estimated earnings of different cryptos.
Borrow cash or stablecoins using cryptos as collateral
If you need cash or stablecoins urgently, but you have cryptos, the Celsius Network allows you to borrow fiat currencies such as USD, then use your cryptos as the collateral. Getting a loan is relatively easy. All you have to do is deposit one of the supported collateral types and select the loan term.
The Celsius Network proposes different types of interest rates, and the required collateral is always adjusted accordingly. The interest rates start from 1% APR and the terms start at 6 months. The Borrow page shows you an interest and collateral calculator to get started. You will receive a lower interest when you select the CEL token as an interest payment.
Also, with Celsius Network, you will be able to access some hard cash and still be able to keep your cryptos.
Celpay
Celpay is essentially a feature on the Celsius Network app that allows users to send cryptocurrencies to their contacts seamlessly. Unlike other wallets, Celpay is very beginner-friendly. There is no need to struggle with private or public keys or install a crypto wallet beforehand. The app allows you to share cryptos with friends by sending them a link with the transaction via a text. Very user-friendly.
CEL Tokens
CEL is an app utility token that gives the Celsius Network users access to the best crypto financial services. What’s more, you get better rates when you choose CEL as your receiving currency. The different tiers (Bronze to Platinum) determines your discount.
On top of that, you get member-exclusive advantages. That means, if you are using the Celsius network, you will get some extra benefits by using CEL Tokens.
Free 20 USD in BTC after a deposit of 200 USD or more
What are the risks of using this platform?
Celsius Network has many advantages, but that doesn’t mean it doesn’t have a few risks. Celsius Network comes with a centralized wallet. That means that you don’t own the private keys to your wallet.
The other danger is that whether you want to start borrowing or lending with the Celsius Network, you need to deposit valuable assets to your Celsius account. The problem is that there is no guarantee that your assets are, in fact, safe from hackers.
Even though Celsius is relatively safe to use, there can be a breach or the company can go bankrupt. It’s not clear what happens with the user funds when this happens.
If you choose to get a CEL token payout, your payment amount can go up or down based on the CEL price. When there’s a price crash, you will lose more money because you hold the CEL token.
Security is also partly your own responsibility. Make sure you activated 2-factor authentication and that you chose a strong password. In the Security Overview you can check your Security Score. When you’re not planning to withdraw your deposited funds, you can activate HODL mode. This blocks withdrawals from your account. When this is de-activated, you need to wait 24 hours to withdraw your funds.
Celsius Network fees
Celsius Network, unlike most crypto lending platforms, doesn’t charge any fees for withdrawal, deposits, transactions, or origination. Essentially, you get zero-fee transactions with the Celsius Network.
How do they earn money, you might think? The company brings lenders and borrowers together. Lenders lend their coins and borrowers borrow them. The interest paid by the borrowers will go to the lenders. For this service Celsius holds 20% of the interest paid to the lenders. The lenders will receive 80% of the paid interest. A real win-win scenario.
Is Celsius Network safe?
Celsius network uses PrimeTrust and Fireblocks to secure your assets stored in the company’s cold wallets. With the Fireblocks and PrimeTrust, you are guaranteed with an ultimate insurance of all your purchases on the Celsius network. Essentially, it helps to cover any loss. That ensures the safety of your assets.
However, not all the assets on the Celsius network are stored in cold wallets. Most of them are loaned to the community to gain interest. Also, Celsius doesn’t offer insurance on your loans directly. That means, in case there is a cyber-attack, you may incur some losses. Although Celsius will promise to use their balance sheet to cover any losses, their terms of use do not guarantee you that you will recover your assets after a hack.
The idea is great, but the usage of this platform is at your own risk. Never put all your life savings on this platform. It is even better to spread it over multiple platforms, like for instance BlockFi.
Free 20 USD in BTC after a deposit of 200 USD or more
Have you lent or borrowed assets with Celsius Network and would you like to share your experience? This can be done via the assessment form below.
Contact details:
Celsius
1 Bartholomew Lane
EC2N 2AX
London UK
United Kingdom
Related:
All Celsius.network reviews:
Overall good. However, it was the lowest level in the customer response section. I sent several emails, but no reply was received.
Tell us what you think of Celsius Network.
What is Celsius Network?
Celsius Network is a peer to peer lending and borrowing app for Android and iOS. Lenders can earn an interest by lending their cryptocurrency and borrowers can borrow cash or stablecoins by borrowing the crypto from the lenders.
What are the interests for lending crypto?
The app supports over 30 different cryptos and stablecoins which can be lend on the platform. The highest interest rate is currently 21.49%, but can differ over time. The interest rates are different based on the chosen crypto.
Do I have to perform a KYC?
Yes, a KYC is mandatory since it is an official financial institution.
Are the interest rates fixed?
No, the interest rates can change, based on the current market. Celsius will notify you of these changes.
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