A Guide to Celsius Network – Crypto Lending on Your Terms

If you are completely and utterly new to cryptocurrencies, you don’t have to engage in risky financial operations. On the contrary, you can put all your newly-bought assets in a wallet, sit back and watch it pay you back.

This simple but effective way of increasing your crypto portfolio passively is possible with Celsius Network. This platform allows you to earn interest by lending a fraction of your holdings to them. It’s a bit like traditional banking. Only here, you don’t pay any fees and get juicy bonuses and rewards for participation.

If you’re wondering how to use Celsius Network to earn money, you’ve come to the right place. Read on to discover how this innovative DeFi protocol works!

What is Celsius Network?

Celsius Network is a decentralized banking platform that offers a rich suite of financial services to cryptocurrency users.

Celsius users can lend and borrow blockchain assets like stablecoins but US Dollars as well. More so, they can earn up to 17% yield on the assets they stake on the platform.

The Celsius Network was launched in June 2018, and it fuels its operations with a native ERC-20 token, the CEL token. Participants can use CEL to:

  • Generate interest
  • Take out loans
  • Send peer-to-peer (P2P) payments
  • Pay and get paid with various cryptocurrencies

And, that’s not all! Celsius is slowly becoming one of the best-performing all-in-one banking solutions in the decentralized finance space. Proof of its ascent is the value of the CEL token, which increased in value by 600% since its release.

Who is Behind Celsius Network?

Celsius Network was co-founded by Alex Mashinsky, the inventor of the VoIP (Voice over Internet Protocol). His innovation was a technological breakthrough that, today, enables us to talk in real-time over the internet instead of over the telephone.

Today, Mashinsky is the CEO of Celsius, which he runs with its other co-founder, S. Daniel Leon. The latter is a business and social entrepreneur with a long history in building and growing successful organizations.

The two came up with the Celsius project in 2017 and released it a year later. They now have a large team of technical developers and advisors improving the platform and its services.

How Celsius Network Works

Celsius Network defines itself as the “wallet that pays you back.” However, behind this overly simplistic description, we find a complex staking mechanism that enables users to earn crypto-assets starting almost from scratch.

Staking on Celsius

The Celsius Network takes a unique approach to staking when compared to similar DeFi services. Firstly, it organizes users in four tiers depending on their loyalty. Then, it allocates different interest rates and bonus rewards to each tier, respectively. Thus, the more assets you stake, the highest the tier you’ll occupy, and subsequently, the earnings will be more substantial.

Here’s how the Celsius Network tiers work:

Bronze Tier

You can stake between 5 and 10% of your portfolio in CEL tokens in this entry-level tier. In return, you earn a 5% bonus reward from interest payments and a 5% discount on loan interest.

Silver Tier

If you stake between 10 and 15% of your portfolio in CEL tokens, you advance to the Silver Tier. As a result, you gain 10% bonus rewards and a 10% discount on loan interest.

In the silver tier, users are holding 10-15% of their portfolio in CEL tokens. This entitles them to 10% bonus rewards (interest payments) and a 10% discount on loan interest.

Gold Tier

Increase your stakes to anywhere between 15 and 20%, and you advance another level to the Gold Tier. Here, you get 20% bonus rewards and a 20% discount on loan interest.

Platinum Tier

The top-level in the Celsius staking system is the Platinum Tier. Only participants who stake between 20 and 100% of their portfolio in CEL tokens can access it. In return, they get 30% bonus rewards and a 20% discount on loan interest.

What are the Celsius Fees?

If you thought the staking tiers on Celsius are great, wait until you find out about the zero fees that you have to pay.

That’s right! On Celsius Network, you don’t have to pay any fee for deposits or withdrawals. Furthermore, the platform doesn’t tax you any origination, default, or early termination fees. So, you don’t have to worry about paying the lion’s share every time you move a finger on the network.

How to Earn Interest with Celsius

Celsius Network has a beginner-friendly modus operandi. In other words, you don’t have to be a crypto guru to earn interest on this platform. All you have to do is create a wallet and deposit several coins of your choice. Then, you start earning interest almost immediately.

Every week, you get a payment from Celsius representing the interest you made over the last seven days. And, if you want to withdraw your principal and the interest, you can do so at any time.

How to Get a Loan through Celsius Network

You don’t necessarily have to use Celsius Network for earning interest. You can also access this platform to get a loan in cryptocurrencies. This is possible if you have enough crypto assets to offer as collateral.

Additionally, Celsius practices insanely low interest rates. For instance, they take 1% APR for cash loans and only 0.7% APR for loans you take in CEL tokens.

What is CelPay?

Celsius Network has an expanding suite of financial tools. One of them is CelPay, a crypto payment app that you can use to send crypto to other people. The best part about it is that the receiver doesn’t necessarily have to own a crypto wallet.

When you send money with CelPay, you receive a unique link you can send to non-crypto users by email or SMS. When the receiver accesses it, he has to create a temporary wallet on Celsius and retrieve the sum. Senders can get up to 2% cashback if they use CEL tokens for payments. However, you can also send Bitcoin, Ethereum, and more than 30 other crypto assets.

What is Celsius Network Token (CEL)?

CEL is the native token of the Celsius Network platform, and it is an ERC-20 token running on the Ethereum network.

CEL was officially launched in June 2018 through an ICO that raised no less than $50 million. During the event, every token was valued at $0.30. However, soon after the sale ended, the price dropped by 90%.

Some of the CEL token uses include:

  • Staking
  • Earning interest
  • Loaning
  • Sending and receiving payments
  • Paying interest

At the time of this writing, CEL was trading for $6.16. There was a circulating supply of 238,863,519.83 CEL, and its market cap was estimated at $1,470,333,735.

You can buy CEL at crypto exchanges like Binance, MXC.COM, and Hotbit. Also, since it is an ERC-20 token, you can store it in crypto wallets compatible with Ethereum-based assets, such as Ledger Nano S and MetaMask.

How Safe is Celsius Network?

So far, you may say that the Celsius Network is one of the best DeFi protocols to date. And, you wouldn’t be far from the truth. However, like any other crypto project, Celsius has its downsides as well.

The biggest downside of using Celsius Network is that you entrust your assets to a custodial wallet. This type of crypto storage is one of the least secure ones because a third party controls your keys.

Now, this doesn’t mean that all custodial wallets are bad or even that Celsius would mismanage your account. Nevertheless, to access all its exciting services, you have to give up a generous slice of your control pie.

In terms of safety, Celsius aims to meet the highest standards of security in decentralized finance. In this regard, the company asked and received licensing from the U.S. Treasury Department’s FinCEN unit. In addition, the Securities and Exchange Commission in the U.S. Therefore, we can safely say that Celsius is not a shady project looking to run off with your keys and crypto-assets.

The Bottom Line – A Guide to Celsius Network

Celsius Network is one of the most promising lending/staking protocols to come out of the DeFi upheaval. It offers plenty of convenient tools for beginners who can earn some crypto at a stage where they don’t know the difference between coins and tokens.

Additionally, Celsius also helps experienced crypto users buy and borrow value in as many as thirty currencies. Finally, innovative payment apps and a future credit card complete a spectacular suite of new financial tools.

Bitcoin live price
price change

If you are not a control freak, and you don’t mind earning interest on your assets while they stay in a custodial wallet, Celsius Network is for you!

Stay up to date with our latest articles

More posts

Decentraland – A Virtual Reality Platform Unleashing the Blockchain Potential

Since its inception, virtual reality has been a phenomenon. People have been fascinated by the idea of stepping into another world that humankind created. With Decentraland, this fascination has become a reality.  Decentraland is a popular virtual reality platform that allows users to create and experience anything they can imagine. Decentraland is also a cryptocurrency platform. Within the Decentraland ecosystem, users may buy goods, services, and real estate with the MANA token. The MANA token enables the project's founders to…

Chain Pet – A Play-to-Earn Ecosystem for an Enhanced Crypto Experience

Blockchain gaming is starting to take off, and Chain Pet is one of the games leading the charge. In this review, we'll look at Chain Pet's main features and how it sets itself apart from the competition. Chain Pet is a play-to-earn ecosystem that rewards players for their contributions. By upgrading, breeding, and combating their elves, players may construct their world. The elves obtained are all personal assets, so finding a partner is essential to help you get started. One…

LoserChick – A GameFi Crypto Platform Relying on Staking

LoserChick is a fun and addictive new game that allows players to catch and smash eggs for NFTs. In addition to providing many ways for players to earn, LoserChick also offers lower gas fees and higher transaction speeds.  Because of its relationship with Polygon, it's an excellent option for gamers seeking to spice up their day a little. This review will analyze LoserChick in detail, so be sure to check it out if you're interested in learning more. What is…

AbellWorld – A Gaming Ecosystem Using NFTs and DeFi Technology

Cryptocurrencies are changing the gaming industry, with new platforms and games emerging that use blockchain technology and decentralized systems.  One such platform is AbellWorld, which uses NFTs and DeFi technology to create a gaming ecosystem that benefits players economically.  In this article, we will discuss how AbellWorld is providing a decentralized solution for all crypto gamers. What is AbellWorld? AbellWorld is a gaming ecosystem that uses NFTs and DeFi technology. It aims to be fair and equitable, focusing on data…

Bots.io – Getting Started with Automated Trading Bots in One Minute

If you want to enter the crypto world, you'll need a tool helping you make the most of your investments. Trading bots are software programs that use historical data to analyze current market trends. This analysis allows a bot to predict where prices will likely head in the future.  This information can help a bot make buy and sell decisions, allowing traders to automate their strategies and maximize profits.  Bots.io is a popular solution for crypto traders that offers many…

WunderTrading – Advanced Automated Crypto Trading for Every Investor

If you're looking for a reliable and automated crypto trading solution, WunderTrading is a popular option. With years of experience in the market, they offer a simple and easy-to-use platform perfect for beginners and experienced traders.  You can trade manually or use their powerful bots to automate your trading strategies. Let us learn more about WunderTrading in today's review. What is WunderTrading? WunderTrading is a trading platform that offers a wide range of features for beginners and experienced traders. These…

Trality – Automated Trading for Crypto Enthusiasts

If you are an enthusiast trader in the crypto market, you want to make the process easier and more profitable. Trality is one solution that has been gaining popularity among traders.  It is an automated trading bot that allows users to trade cryptocurrencies quickly and predictably. Let's take a closer look at what Trality offers and how it could benefit your trading experience. What is Trality? Trality is a platform offering traders and developers many benefits, including a code editor,…

The Bandit Project – How to Earn Passive Income by Staking NFTs

The Bandit Project is a new DeFi protocol aiming to empower NFT holders with passive income opportunities. Moreover, the initiative allows users to own a part of the project and share the revenue with the developers by providing liquidity. It’s worth noting this project is still in its early development stages. Nevertheless, it is advancing relatively fast, with the public presale for its $BANDIT token just around the corner. The much-anticipated event will take place on August 11 at 11…

Floyx – A Project Ready to Change the Social Media World with Decentralization

Blockchain technology is helping creative teams redesign aspects that belong to the Web2 world. The possibility of launching decentralized systems is opening a new set of options in the social media industry too. Today’s review will analyze the main features of Floyx, a new initiative wishing to overcome centralized social media. We aim to share information neutrally, enabling the readers to assess this project’s value proposition. About Floyx Floyx believes that, in the future, social media will be completely decentralized.…

Runnerland – An NFT-Driven Nostalgic Gaming Experience

Runnerland is a new game running on the BNB Chain, allowing users to fight, collect, and exchange items for real money. Fueling the game is a collection of rare NFTs enabling players to build and modify their characters into unique assets. Most importantly, gamers can enjoy a bit of action-adventure nostalgia as the game's universe mimics cult classics like The Legend of Zelda. This Runnerland review looks closely at the game’s features and blockchain-based utilities. Read on to discover its…