Cryptocurrency interest accounts and lending programs are all the rage in the blockchain space right now. Replacing greedy intermediaries, these companies enable interest-bearing cryptocurrency accounts and low-fee lending that utilizes cryptocurrency as collateral.
In doing so, they can offer higher interest rates on savings accounts and loan rates that are generally lower than traditional alternatives. Platforms such as Celsius have grown significantly since they allow users to earn a substantial passive income on your crypto holdings, particularly in comparison to fiat-based savings account interest rates.
Currently, one of the most popular cryptocurrency lending platforms is Celsius Network. In this review, we cover everything you need to know about the platform, so you can make an informed decision on whether it’s suitable for you. We go over:
- What is Celsius Network?
- Is Celsius Network safe to use?
- Can you make money with Celsius Network?
- Which cryptocurrencies are available on the platform?
- How is the customer support?
- Should you use Celsius Network?
You can also catch our most recent interview with Founder Alex Mashinsky, coming soon!
What is Celsius Network?
Celsius Network is a crypto lending app available on Android and iOS devices.
Similar to putting money in a savings account, storing cryptocurrency funds in Celsius earns you interest on your holdings each week. The premise is relatively simple:
- You deposit cryptocurrency into the Celsius app.
- The company then loans those funds out to retail and institutional borrowers.
- Every Monday, you receive a payment from the revenue that Celsius gains from those loans and other activities. The Celsius team boasts a return of 80% of company revenue to users.
The functionality of the app expands far beyond simple interest payments, though.
On the other side of lending, loans are available through Celsius, as well. By putting up cryptocurrency as collateral, you can take out cash (or stablecoin) loans at a range of different terms. Unlike most traditional loan services, Celsius loans don’t require a credit check and typically grant you an approval in minutes.
A comparison of interest rates (Source: Celsius)
Although Celsius Network isn’t a wallet, per se, it includes the ability to send and receive supported cryptocurrency through CelPay. CelPay doesn’t charge any transaction fees and enables you to send crypto via a link, message, or directly in-app.
Is Celsius Network safe to use?
Yes, Celsius Network is safe for you to use.
The company was founded in 2017 by Alex Mashinsky (CEO) and Daniel Leon (Founding President and COO). Mashinsky is notable for his work bringing cell phone service and free WiFi to the New York City subways, enabling WiFI on U.S. flights, and creating Voice over IP (VoIP). And Leon has had an accomplished career as a social entrepreneur, serving as a leader at several organizations, including Atlis Labs, Beyon3D, and GroundLink.
To date, Celsius Network supports over 101,000 users worldwide containing over $730 million in assets. Additionally, the platform has facilitated nearly $5.5 billion in loan originations (about $8.2 billion in today’s BTC prices). The company has made $12 million in interest payments,
You should note, however, that Celsius Network is a custodial wallet platform. So, the company keeps control of the keys for each of your cryptocurrency wallets. While this fact shouldn’t be a deal-breaker for most people, it is essential to know.
Can you make money with Celsius Network?
Celsius Network gives you the opportunity to earn passive income on your cryptocurrency holdings, but there are a few bits of information of which you should be aware of.
The primary way to earn money with Celsius Network is by receiving interest payments on your holdings. To participate, you simply deposit cryptocurrency into a Celsius wallet. Once you’ve done that, you’ll earn interest payments to your wallet every Monday. You can choose whether you receive these payments in like-kind or in CEL (Celsius’s native token).
Celsius Network offers competitive APRs on several cryptocurrencies.
Beyond traditional crypto interest, Celsius Network also includes the opportunity to earn interest on gold. Rather than actual gold, though, Celsius utilizes XAUt, and ERC-20 token with gold backing.
The annual interest rates vary weekly as well as from coin to coin. However, they seem to generally be in the range of 3.00% to 11.00%. Additionally, choosing to receive your interest payments in CEL will net you a higher return. It should be noted that the “Earn in CEL” is not currently available to U.S. users.
You can calculate your estimated return with Celsius’s interest calculator:
An important warning: Currently, Celsius Network does not provide any insurance on your deposits. So if the company falls victim to a hack, for instance, there is a possibility that you will lose your funds.
Which cryptocurrencies are available on the platform?
Celsius Network pays out interest for a wide variety of cryptocurrency. The options include (but aren’t limited to):
- Celsius Token (CEL)
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Bitcoin Cash (BCH)
- EOS (EOS)
- And many stablecoins.
You can also purchase BTC, ETH, XRP, BCH, LTC, and XLM directly in the app.
The Celsius app supports a wide variety of cryptocurrency.
How is customer support?
The Celsius Network website contains a dedicated Help Center that should answer any questions you may have. It includes FAQs regarding deposits, withdrawals, and security, among several other topics.
If you can’t find what you’re looking for in the Help Center, you also have the option to submit a help request in which a Celsius representative will reach out to you via email.
Should you use Celsius Network?
In the end, the decision and responsibility to properly use Celsius Network is up to you, and you alone. Compared to other crypto loan platforms, Celsius offers some of the best interest rates in the industry – to both depositors and borrowers.
A list of the Celsius stablecoins and their APY. (Source: Celsius)
Any cryptocurrency holder stands to benefit from hearty interest rates, provided their principal amount is safe. Earning upwards of 11% on stablecoin deposits can be incredibly appealing for any investor, particularly in uncertain times. Celsius represents the leader of the pack of interest-bearing cryptocurrency accounts and lending platforms, a category with other legitimate players such as BlockFi.
Although Celsius technically holds your crypto keys and is missing traditional banking insurance fiat savings accounts enjoy, you can be reasonably confident that, with the so-far immaculate reputation of the company’s founders, your cryptocurrency should be safe.
If you’re looking to unbank yourself and separate your money from the traditional financial system, Celsius Network is a solid place to start.
The post What is Celsius Network | Cryptocurrency Interest Accounts and Lending Review appeared first on CoinCentral.
Coincentral.com is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
