What is Celsius?

Celsius Network is a centralized platform where you can either lend your crypto for returns or take out crypto-collateralized loans. Although it is centralized, it is part of decentralized finance (DeFi).

The platform is one of the biggest player in the cryptocurrency lending market. It is regulated and SEC compliant.

How does it Work?

Celsius rewards are offered thanks to the rehypothecation of the cryptocurrencies deposited. All crypto deposited are lent to another party and the depositor will earn interest. On the other side, people can borrow by having an over-collateralized crypto position. 

Earn

Earn with Celsius

In the Celsius ecosystem, earnings are called rewards. You can simply earn more of your favorite cryptocurrency or Celsius tokens if you keep crypto on deposit with Celsius. You can either deposit cryptocurrencies or stable coins and you will start earning right away. The rate varies depending on the cryptocurrency. Rewards are paid out weekly. There is no minimum required to deposit and there is also no lock-in period.

There will be some small variations of the interest rate based on your location (either in the United States or anywhere else).

With higher returns and almost no restrictions, Celsius is way ahead of the value proposition of the traditional banks.

Celsius offers incentives regularly in the form of promo codes. For instance, you enter the promo code ETH200 and if you deposit $5,000 worth of Ethereum (ETH) and hold it for 90 days, you will get an extra reward of $200 worth of ethereum (ETH).

They have a Signup BONUS of $50 worth of bitcoin if you transfer $400 worth of any cryptocurrency during 30 days. That is 12.5% ROI in 1 month. Click the button below to be referred and get that deal!

Perks for using the native token CEL

You can earn either in kind or in the Celsius token (CEL). They provide an incentive with higher interest rates. For example, on USDC you can earn 8.5% when earning in kind. If you choose to earn in CEL, the interest rate goes up to 10.73% APY.

What You Could Be Earning

You can earn either in kind or in the Celsius token (CEL). They provide an incentive with higher interest rates. For example, on USDC you can earn 8.5% when earning in kind. If you choose to earn in CEL, the interest rate goes up to 10.73% APY.

Borrow

The Celsius Network lending platform also allows users to borrow US dollars for crypto collateral.

One of the main advantages of borrowing a crypto-backed loan is to access fiat liquidity or stable coins while holding on to the crypto asset. The other way to access liquidity would be to sell the crypto asset but this will be a taxable event. The other thing is that it might not be the right time to sell your crypto asset as maybe the market is down and selling could result in missing out on the market appreciation.

That being said, loans from Celsius are always over-collateralized to protect against market volatility. Therefore the loan to value (LTV) is in the range of 25%, 33%, or 50% of the collateral value. The remaining part is the buffer against the volatility of the market.

Depending on the loan-to-value you select, the interest rate for the loan will vary from 1% to 8.95%. There is a calculator on the website that will show you the total interest to pay depending on the parameters of your loan (collateral, loan amount, LTV, term…) 

One of the biggest advantages is that borrowing doesn’t require any lengthy process like a traditional loan. There is no credit check or other background verification from Celsius. As the loan is collateralized, you can borrow and access the funds almost immediately.

 

CelPay

Celsius doesn’t offer a credit card yet but they have CelPay. CelPay is a crypto payment service integrated in their app that allows you to send crypto to anyone by sharing a link. You can send crypto directly from your phone’s contacts to another user of the Celsius network. If you send it to someone who doesn’t have a Celsius account, the link will tell them to download the app, create an account before the funds are automatically deposited.

There is a $2500 CelPay limit per 24 hours.

Celsius Security

Celsius is highly secured. It has achieved ISO/IEC 27001 security certification.

Conclusion

Celsius offers good interest rates for cryptocurrencies upon deposit and allows users to borrow stable coins or fiat currencies at low-interest rates. The platform is easy to use on desktop and on their mobile app.

If you signup through our referral link below, you will get $50 in Bitcoin upon transferring $400 worth of any cryptocurrencies and holding it for 30 days.

Remember to take advantage of the signup BONUS of $50 worth of bitcoin if you transfer $400 worth of any cryptocurrency during 30 days. That is 12.5% ROI in 1 month. Click the button below to be referred and get that deal!