Celsius crypto – everything to know
We now have a new way of lending and borrowing money with the Celsius crypto network. It lets you earn more cryptocurrencies by leaving them in your account, similar to how a bank works. What’s more, it lets you borrow money a lot easier, thanks to crypto lending. Still, you might be wondering what’s so great about having some sort of “crypto bank?”
Bitcoin was the first cryptocurrency that came out in 2009, and its goal was to create a new decentralized financial system. Projects like Celsius show us how far this idea has become real after years. More importantly, it proves that cryptocurrency and blockchain are changing our world, and you should find a way to adapt to these.
You can’t truly adopt something that you don’t understand, so we will start by explaining what crypto lending is. Once we’ve covered this, we may discuss the Celsius network and its uses. Then, we will talk about the potential benefits and risks of using this service, so you may figure out if you should invest or not.
What is crypto lending?
Nowadays, you may borrow money and leave cryptocurrency as collateral. This is called crypto lending, and it’s becoming a promising alternative to our current financial services.
Those involve a lot of steps and people, so you end up waiting days for your transactions. On the other hand, crypto lending uses smart contracts to make them happen.
They are agreements that execute once the right terms are met. It will do this without the help of another person, and that’s why the transactions take a few minutes instead of a couple of days.
What’s more, it usually requires that you leave a minimum balance based on the amount of collateral you put down. You may even make money from this.
Cryptos are known for their wild price movements as the values may go up and down significantly within minutes. This means the value of your collateral may rise and decline too.
You may borrow more money or leave the loan with profit if it goes up. If it drops, though, you must put in more cryptos to keep your loan. Otherwise, they may sell your coins.
Leaving your cryptos in the platform is a good idea, too, since these typically have higher rates than most banks. The Celsius crypto network is a great example.
Read More: How Does Crypto Lending Work?
What is the Celsius network?
This is a crypto lending platform founded in 2017 by Alex Mashinsky and Daniel Leon. In 2018, the platform issued its native token called the Celsius (CEL) token.
It lets you keep bitcoin, ethereum, and more than 30 other crypto assets on its platform. As we said, it works like a bank because those savings will yield interest payments.
The CEL token allows the Celsius crypto network to reward users. For example, holding a certain number of CEL tokens let you reach reward tiers that let your earn more:
- Bronze – 5% – 10% of your portfolio contains CEL tokens, bonus rewards 5%
- Silver – 10% – 15% of your portfolio contains CEL tokens, bonus rewards 10%
- Gold – 15% – 25% of your portfolio contains CEL tokens, bonus rewards 15%
- Platinum – 25% – 100% of your portfolio contains CEL tokens, bonus rewards 25%
What’s more, you can earn a 2% usage reward if you merge your CEL tokens with the CelPay features of the Celsius app. It’s the money transfer mobile app of the Celsius crypto network.
What’s great about the Celsius crypto network?
Make your stablecoins work for you. ✅ Get paid weekly on any amount of USDC, with no fees, no lockups & no banking B.S. Now earn up to 10.02% APY on USDC when earning in-kind.
💸 Get up to $600 in Bitcoin with our promo codes (below).https://t.co/NVQ2bxSblX pic.twitter.com/VMN07FLgqG
— Celsius (@CelsiusNetwork) November 14, 2021
As we said, this crypto platform lets you earn more than your average bank. You could make even more money if you buy and hold CEL tokens.
It even yields more profit than similar platforms. For example, BlockFi has an annual percentage yield (APY) of up to 8%, while Nexo provides up to 12%. Celsius yields around 17.78%!
Even better, you wouldn’t need to keep a minimum balance, so nearly everyone can join. The platform doesn’t even do credit checks.
This means those with bad credit may see it as a good pick. Still, you must be careful about handling your money, no matter what service you’re using.
What are some issues with the Celsius crypto network?
Access your #Celsius account anytime, anywhere, and on any device! Now with dark mode and a new & improved dashboard. 😎 https://t.co/0GsqsIi9xG pic.twitter.com/WjMI3WcOFe
— Celsius (@CelsiusNetwork) November 11, 2021
Celsius may say it’s decentralized, but it does have so much control over its users. According to its Terms of Use, it can suspend, freeze, or shut down your account for any reason.
Worse, the platform will not be taking responsibility for any mistakes it makes that may cause you to lose money. Also, you will have to take on all their legal spending.
It will deduct those expenses from your account. What’s more, Celsius doesn’t have a crypto exchange of its own, and this is why it only allows around 34 cryptocurrencies.
Meanwhile, so many other platforms offer what Celsius does while letting people trade hundreds of cryptos. Binance is a great example that has far more features than this.
What’s more, people in the US cannot earn benefits from CEL tokens, and they may not buy them either. They will have to check other options like Coinbase.
Should I invest?
When deciding to invest in a digital asset, you must check the basic market data. Fortunately, various websites and crypto exchanges provide the latest ones in real-time.
At the time of writing, the price of CEL tokens was $3.92, which and it’s going on a downward trend. You might want to buy while the price is going down.
That way, you have a chance to earn more once it rises again. Still, you must base your decision on your financial goals. Do you want to earn in the short term or the long term?
Some cryptos aren’t good for earning more. For example, stablecoin prices barely move, so you’re unlikely to make money from them.
Related Articles
Final Thoughts
This article is just intended to inform you about the Celsius crypto network. That’s why we didn’t tell you outright to invest or avoid this asset.
Instead, we gave tips on how to choose the right investments. Have a goal, study your options, and recognize the risks. Never use the money you cannot afford to lose!
The internet has a lot of free resources to help your investment journey. Start with the other Inquirer USA articles to learn more about other cryptos and related trends.
