The following review is for educational purposes only. None of the information presented in this article should be taken as financial advice or a suggestion to invest in any asset. Before investing in any asset, please do your own research.
When it comes to holding your cryptocurrency, there are a host of centralized wallets and service providers that can hold your cryptocurrency for you and allow you to earn interest by lending your cryptocurrencies to them. One of the most popular wallets to do so is Celsius Network. With over 700,000 users, Celsius Network boasts an extremely user-friendly interface on both IOS and Android. For those looking to lend their cryptocurrency on a centralized wallet, Celsius Network is an extremely strong candidate to be added to your arsenal of cryptocurrency tools. For those new to Celsius, it is important to review major components of the Celsius Network before depositing their cryptocurrency into the platform. The Celsius profile on our Staking Rewards website gives a general overview as well as interest rates on different cryptocurrencies.
First, it’s important to note that the Celsius wallet is a hot storage, centralized cryptocurrency wallet. That means you won’t have direct access to your private keys, and as the saying goes, “not your keys, not your crypto.” As a centralized wallet, your crypto and private information may be exposed to hacking or other security breaches. When using a centralized wallet, it is important to understand all risks associated with using a centralized cryptocurrency wallet.
At the head of the Celsius Network team is CEO and co-founder Alex Mashinsky. Mashinsky hosts weekly AMAs on YouTube. Mashinsky and the rest of the Celsius team are known for their high levels of community engagement as well as excellent customer support. According to Trustpilot, Celsius has a 4.1 rating with over 1300 reviews. Their Trustpilot profile can be seen here.
There are two platforms that Celsius users are able to use. These two being the web app and the mobile app. The mobile app is available for both Android and IOS devices. When logging into the app or web app, users are required to use Google authenticator codes or biometric authentication to ensure plenty of security. The Celsius platform on both mobile and web, provides the user with a smooth and visually appealing experience. The web app is much newer than the mobile app and the mobile app allows users access to more services than the web app. Both the app and web app allow the user to see charts regarding the status and history of their cryptocurrency holdings and the historical action of their rewards.
When logging into the Celsius web app, you are immediately greeted with your dashboard. There, you can see your wallet balance, total rewards, your loyalty level, and a line graph of your balance and reward history. On the right side of the dashboard, you will see the coins you currently hold in your wallet, and the current rewards rate you are receiving.
Click on “Available Coins” and you will see what coins are available to be held on the platform. Under the “Coming soon”, you will see coins that are coming soon to the Celsius Network platform.
Earn with Celsius Network
Celsius wallet offers users different interest rates based on the cryptocurrency they wish to hold on the app.
For every stablecoin except DAI, users earn a minimum of 8.88% APY. Users can increase this rate by increasing their loyalty level. The rates below are for US residents.
International users are eligible to earn in Celsius Token (CEL) in order to increase their APY. International users can expect the following rates if they choose to earn in CEL.
When holding your cryptocurrencies in your Celsius wallet, US users and international users can expect to see different cryptocurrencies available for them to hold. Currently, Polkadot and Bancor Network Token are available for international users but not available to be held in a US-based Celsius wallet.
Below, you can find the reward rates when earning in-kind.
When earning in CEL, rates are higher as expected.
All rates can be found here. Before depositing your cryptocurrency into Celsius, be sure to read all applicable disclaimers on the Celsius Network website. Reward rates may change occasionally.
Let’s take a look at some potential rates you could earn if you deposit your crypto on Celsius. You can calculate your potential earnings using the calculator on their website at the following link. Let’s say you deposited $1,000 worth of ETH. When choosing to earn in ETH, you would receive $287 over 5 years in interest, at a rate of 5.05 APY.
If you chose to earn in CEL, you could earn $374 in CEL at an APY of 6.35% over the course of 5 years.
Let’s take a look at another example and let’s use USDC as an example. Let’s say you deposit $10,000 in USDC. If you chose to hold for only a year, earning in USDC at an APY of 8.88% you would earn $927 USDC.
If you chose to earn in CEL, you would earn at an APY of 11.21% and would earn $1,185 USDC over the course of 1 year.
Borrow with Celsius Network
Users can also borrow cryptocurrency or stablecoins using their cryptocurrency as collateral. Currently, users are only able to borrow cryptocurrency on the mobile app. Celsius approves loans using instant approval with no credit check required. The interest rates start from 1% APR and Celsius allows users to borrow against over 25 coins, without having to sell their cryptocurrency. Terms also start at 6 months. Borrowing against your crypto allows users to have access to their crypto without having to sell their crypto. This option is good for investors looking to use their cryptocurrency without needing to withdraw their investments from the app. Therefore borrowing against your crypto may be a good option for many cryptocurrency investors.
Borrow via the Mobile App
Currently, users are only able to borrow on the app. When opening the Celsius app, users have two options when clicking on the “borrow” tab .
Users can apply for a loan or can use the built-in calculator and calculate how much collateral they need to have in order to take out loans.
First, let’s take a look at the “Apply for a loan” tab.
Under the loan calculator, you can enter the amount you wish to borrow. Next, you would choose what coin you would like to have as the collateral in this loan. The app would then tell you how much crypto you need for the collateral.
When applying for a loan, you have two options.
You can borrow stablecoins or borrow USD. When borrowing stablecoins, you can choose from 6 different stablecoins. These include TrueUSD (TUSD), Gemini Dollar (GUSD), Paxos Standard (PAX), USDC, USDT, and DAI.
After choosing which cryptocurrency they wish to borrow, users are able to choose their Loan-to-Value percentage. Then, users can choose the length of their loan, with the shortest time span being a 6 month loan with the maximum being 3 years. Then users can pick their interest. Users are eligible to pay less interest if they chose to pay interest in CEL. There is no penalty if you pay off your loan early, however, you are still required to pay the required interest on the loan regardless of if you pay it early.
Pay with Celsius Network
If you have friends who use the Celsius wallet, it may be beneficial to use their CEL pay feature. For those who want to avoid using apps such as Paypal or Venmo, CelPay may prove to be an appropriate replacement.
Using it is simple and free and you can send money to any Celsius wallet user.
One basic aspect of the Celsius wallet is the CEL Token. CEL is an ERC-20 token on Ethereum created by the Celsius team. Users of the Celsius wallet are able to increase the rewards they receive based on the CEL Token making up an increased percentage of their wallet.
Celsius has four loyalty tiers. Bronze means having 5% – 10% of your Celsius wallet being in CEL Token. Bronze members receive 5% bonus rewards and a 5% loan interest discount. Silver members must have 10% – 15% of their wallet in CEL Token. Silver members receive 10% rewards and loan interest discount. Gold is 15% – 25% CEL token holdings, with Gold members receiving 15% in bonus rewards and a 15% loan interest discount. Lastly, Platinum with 25%+ of their Celsius wallet being CEL Token. Platinum users receive 25% bonus rewards and 25% loan interest discount. The CEL Token is available for purchase on Liquid, FTX IDEX, Demex, Uniswap, and Totle.
CEL Token is distributed to different CEL wallets that determine how much CEL is locked up and how much is in circulation. According to Celsius, 16.8186% of the total CEL supply is currently locked. Approximately 24.1452% of the total CEL token supply is currently under Celsius management. 48.7923% of the total CEL supply is currently in circulation inside of Celsian App Deposits. The rest of the total supply is currently on a host of centralized exchanges and Uniswap. Currently, the top 500 Celsius wallets contain 38% of the total supply.
When earning interest on your crypto balances, users have two options. These being, earn in-kind (deposit BTC, earn BTC), or earn in CEL (deposit ETH, earn CEL). Currently, American users are unable to be paid in CEL. Additionally, as a result of US regulation, there are no centralized exchanges that offer Celsius Token. American users looking to purchase CEL Token must purchase it through Uniswap.
For institutional and high-net-worth clients, Celsius has a host of institutional features. Those interested should view these features here.
When analyzing any cryptocurrency project or new coin, understand and analyze the community support and engagement is crucial to predicting the long-term viability of any given project. Celsius is known for its vocal community. Celsius Network has an active Twitter account, with over 150,000 followers. Their tweets get good engagement and the Celsius community is active all over Twitter. Their Instagram is also very active with 13,000 followers. Celsius users are known for their loyalty and their admiration for the CEO Alex Mashinsky. Currently, their Youtube channel boasts over 46,000 subscribers with regular videos from Alex Mashinsky and the rest of the Celsius team. Their videos constantly get thousands of views and good engagement in terms of likes and comments.
The Celsius community also has an active Reddit with strong community engagement. Celsius also has an ambassador program, allowing users to become ambassadors for Celsius. The strong engagement of the Celsius team and supporters bodes well for the long-term viability of the Celsius project.
Pros and Cons of Celsius Network
Let’s take a look at some pros and cons of using the Celsius Network crypto wallet.
|Supports 12 Stable Coins, 3 Gold Tokens, and 27 Cryptocurrencies with new coins being added in the future.||Centralized Wallet: not your keys not your crypto.|
|CelPay allows you to send money to other Celsius users.||Earning in CEL is unavailable to US users.|
|Ability to borrow stablecoins or cryptocurrencies using your own crypto as collateral.||No way to spend your crypto through a medium such as a debit card.|
|Rewards are automatically added to your account, with no need to claim your rewards.||Gives the Celsius team voting power on projects because they hold your cryptocurrencies.|
|Rewards compound weekly.||US users cannot purchase CEL token within the app.|
|Available on IOS, Android, and Web App.||Borrowing is only available on the app currently.|
|Solid user support and a strong community.|
|Strong security measures including using Google authenticator and biometric authentication.|
|Increasing your holdings in CEL allows you to earn more interest and better rates on borrowing.|
The Celsius platform on both web app and mobile is extremely user-friendly and allows even novice cryptocurrency investors to send and receive crypto into their wallets with ease. Celsius charges zero fees when withdrawing which is extremely convenient if you need to withdraw crypto often. The app allows users to create API keys as well as allowing users to use the app in dark mode. The app and web app allow you to see the total balance and total earnings and then a breakdown of your holdings based on each crypto you have.
Additionally, next to each cryptocurrency you hold, it shows the interest you are currently receiving on that crypto. Further down, you are able to see the cryptocurrencies available on the app, which includes several stablecoins. Lastly, users are able to see coins that are coming soon to Celsius. Overall, the app is extremely visually appealing and extremely easy to use. Although the platform is new to the crypto scene, cryptocurrency users should seriously consider using and adding the Celsius Network to their array of cryptocurrency wallets.