Celsius Review 2023
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Celsius Network is a UK-based cryptocurrency lending and borrowing platform with an in-built exchange and support for trading almost 40 digital tokens.
Celsius is a centralised cryptocurrency lending exchange where users can either take out cryptocurrency loans or invest in crypto to earn interest fees and profit from increases in crypto values. The platform has dedicated itself to being accessible and low-cost, boasting competitive interest rates and a sleek platform. This Celsius Network review will explore its platform, key features, pros, cons and other useful information.
Celsius Network Limited was launched in London, UK, in March 2018 by founder Alex Mashinsky following the successful initial coin offering (ICO) of CEL, the platform’s native token. Since then, Celsius has grown rapidly and now CEL has a market cap valuation of USD 1.41 billion and, in March 2021, it surpassed USD 10 billion in community assets.
The CEL token is an integral part of the Celsius platform as it is used for the four-tier loyalty program that provides benefits like bonuses on earnings and discounts on loan interest rates. The four tiers are bronze, silver, gold and platinum and are determined by the percentage of a user’s portfolio that is made up of CEL.
The bronze tier (less than 5% CEL) provides no benefits to users, the silver tier (5-10% CEL) provides a 10% bonus on earnings and 10% discount on loan interest rates, the gold tier (10-15% CEL) provides a 20% bonus and 10% discount and the platinum tier (greater than 15% CEL) provides a 35% bonus and a 30% discount.
In order to use any of the features on the Celsius platform, you must first acquire some crypto. You can either transfer crypto you already own to the coin’s native blockchain or purchase crypto directly. This is a relatively simple process whereby users go to the in-house wallet on the app, select the payment method of choice between credit card or bank wire transfer, the crypto to purchase and the fiat currency used for the transaction. After entering the desired amount and confirming the purchase, the crypto is then deposited in the user’s account.
Crypto lending platforms are a new alternative to banks for borrowing and lending, aimed specifically at cryptocurrency tokens. This platform connects the borrower to a crypto holder who wishes to loan out some of their coins in exchange for interest payments. This provides a means for lenders to earn passive income and an easier way for borrowers to loan what they need for trading.
The lending, or ‘Earn’ service is where a Celsius user can stake either a stablecoin, gold token or cryptocurrency that Celsius then loans out to either retail or institutional borrowers. After the tokens are loaned out, the lender then earns weekly payments either in-kind or in CEL from the revenue that is generated from the loans. The staking rewards vary from time to time so check the Celsius Network website for the most up-to-date rates.
Note that the gold tokens are not actually gold but digital assets, such as PAXG, that are related to the price of gold.
With this lending service, Celsius also provides a yield calculator for lenders to work out their potential earnings. Users input their choice of crypto for staking, how much and for how long to find out the annual yield and subsequent earnings.
Celsius provides a service for both retail and institutional customers to borrow either stablecoins or USD, with a cryptocurrency used as collateral. The minimum amount a user can request in stablecoins is $500 and the minimum in USD is $15,000, and so it is very accessible and affordable.
The loan application process is simple, users must go to the borrow section of the Celsius app, click the ‘apply for loan’ button and then choose between a stablecoin loan or a USD loan. For a stablecoin loan, you have the choice to receive any of the provided stablecoins on Celsius.
After choosing the loan type, input the amount in USD that you wish to loan and which cryptocurrency to as collateral, the quantity of which Celsius calculates automatically. The user will then select the interest rate and loan term, where lower interest means more crypto is locked up as collateral. Celsius also tells the user the margin call, at which point the user will need to deposit more collateral, and liquidation price, where the collateral is sold to cover the margin, for the specific coin being used.
On the ‘Borrow’ page on the Celsius website, there is an interest calculator into which users put the aforementioned loan details and the total loan amount so that the monthly interest and total loan interest are calculated.
This is the in-house Celsius payment system that has made transferring crypto between users much simpler as it avoids the need for long crypto addresses. It works by having a user establish a network with other users, such as friends and family, to whom they can quickly and easily send any crypto that they like. All cryptocurrencies on Celsius can be transferred using CelPay but, if CEL is used, you get a 2% cashback bonus
Celsius has joined the booming DeFi industry with its own decentralised exchange (DEX) built upon an automated maker model system (AMM). A DEX is different from a traditional exchange as, rather than connecting buyers and sellers to complete transactions via an order book, the user trades crypto via smart contracts and ‘liquidity pools’. These pools are run by algorithms set up by the AMM to pair buying orders with available crypto. CelSwap was created to allow users to swap between cryptos and to capitalise on a certain token’s higher interest rate.
For high-net-worth and institutional clients, Celsius offers customisable services that can adhere to their needs through support and apps. One of the services that Celsius Pro provides is treasury management with a dedicated accounting team to monitor loans and risks in real-time. This allows customers to earn rewards by lending to Celsius without having to include collateral.
Celsius prides itself on its low-cost services, not charging clients any trading fees. This is possible as the broker generates profits through lending activities, rather than charging early termination, loan origination, deposit or withdrawal fees.
The only fees paid on this platform are due to third-party services like Coinify, Simplex and Wyre, which are used to purchase crypto and built digital wallets.
The yield rates for lending and borrowing vary depending on the currency you are using, as well as the specific time. Interest rates for coins like Bitcoin and Ethereum vary with market conditions like demand, supply and market cap, as well as Celsius’ previous week’s earnings. However, all stablecoins are pegged at 8.88%, except MCDAI.
There is a Celsius mobile app available for download on iOS and Android as well as a web app for PC users. The application can be found on the Celsius website, Apple App Store or Google Play Store.
Promotions & Deals
There is a wide range of promo codes available and users can select the reward amount, coin and minimum transfer required that is best for them. Most Celsius promotions are only a signup bonus for new users, though there are others such as the ADA40 promo, where the reward is 40 Dollars worth of ADA coin for a minimum transfer of USD 400. For the full list of wallet promo codes and their rules, see the Celsius website.
Celsius is ISO 27001 certified, which means that it has invested sufficiently into personnel, infrastructure and technology to protect users. This is evident as there have been no reports of hacks or security breaches in over three years of conducting business.
The account protections are strong as they require identity verification, two-factor authentication (2FA) and a QR code authenticator app for registration and profile login. The information that is required differs depending on where you are based. For example, US customers need to submit their social security numbers and ID due to the SEC’s know-your-customer (KYC) rules.
While there is protection against hackers gaining entrance, there is no compensation scheme if any crypto is stolen. This is because Celsius’ assets are not insured by any private or governmental insurance plan, so ensure you never invest more money than you would be comfortable losing.
It is worth noting that this is a custodial wallet platform and so Celsius holds the keys for all crypto wallets.
There is a comprehensive help centre on the Celsius website with an API portal and knowledge base section that has tutorials to help users learn about the platform and its features. However, there is no live chat service, so if you are having issues like the app not working or a withdrawal is unconfirmed then you can either submit a request via email or contact the Celsius Network team on their social media channels on Twitter and Reddit. You could also check out YouTube videos from the community for extra customer advice and the Celsius Network LinkedIn and Medium Blog are great places for upcoming features and related news.
Celsius is regulated and holds licenses with the American FinCEN and SEC, so users can be assured that it is a safe and trustworthy platform. It was previously on the Financial Conduct Authority’s (FCA) temporary registration, though the lack of certainty surrounding the UK crypto industry led it to cancel its registration.
This means that UK customer registration is closed, though preexisting users can continue to loan and borrow crypto on the platform.
In the USA, the specific features available to users can vary between states. For example, under the licensing by the California Department of Financial Protection and Innovation, Celsius can offer a zero loan with which Californians can borrow stablecoins at 0% APR.
- Easy-to-use platform
- Good, weekly rewards
- Available in over 100 countries
- Loyalty program with great benefits
- In-house CelPay for fee-free payments between users
- Custodial exchange platform (it holds your crypto)
- Limited number of cryptocurrencies available
- No private or governmental insurance
- Minimal educational resources
Celsius offers a novel and less complicated way for both beginners and more experienced traders to purchase, borrow and lend cryptocurrencies. With the high interest rates and low costs on offer, Celsius lending could be a great way for users to earn a passive income. The small minimums and collateral provide an accessible and affordable means of borrowing digital capital without the need to go to a regular bank.
What Is HODL Mode?
This is where Celsius users can temporarily disable all outgoing transactions from the account, essentially “holding on for dear life” as the name suggests. When this is activated, there is a 24-hour withdrawal prohibition before users can revert their account to normal. This includes prohibiting the sending of funds via CelPay and the changing of whitelisted withdrawal addresses.
Is Celsius Available In The UK?
No, registering from the UK is not currently supported as the broker withdrew from FCA registration. However, if you already had an account, you can continue to use the platform as normal.
Are There Any Gas Fees With Celsius?
No, Celsius does not charge for gas on their platform. There are no hidden fees that users pay, instead, Celsius makes money by lending coins to hedge funds, exchanges and institutional traders.
Does Celsius Offer Yield Farming?
Yes, this is just another way of saying ‘earning from lending’. For example, investing USD 1000 for MATIC staking at a current interest rate of 10.51% for 5 years would yield USD 690.
What Are The Currently Available Celsius Promo Codes?
The full list of Celsius’ 2021 referral and promo codes, along with their rules, is available on their website. Alternatively, you can keep track via their social media channels or Medium blog.
Celsius accepts traders from Australia, Thailand, Canada, United States, United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar and most other countries.
|Regulated By||SEC, FinCEN|
|Mobile Apps||iOS & Android|
|AI / Machine Learning||No|
|Negative Balance Protection||No|
|Guaranteed Stop Loss||No|
Cryptocurrency Trading Details
|Crypto Auto Market Maker||Yes|
Top 3 Alternatives to Celsius
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IG Group – IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
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World Forex – World Forex is an offshore broker registered in St Vincent and the Grenadines, offering commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.
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Celsius Comparison Table
|Celsius||IG Group||Interactive Brokers||World Forex|
|Markets||Crypto||CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting||Forex, Stocks, Commodities, Crypto||Forex, CFD Stocks, Metals, Energies, Cryptos, Digital Contracts|
|Minimum Trade||$0||0.01 Lots||$100||0.01 Lots|
|Regulators||SEC, FinCEN||FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA||SEC, FCA, IIROC, SFC||SVGFSA|
|Bonus||–||–||–||100% Deposit Bonus|
|Platforms||Own||MT4, AutoChartist, TradingCentral||AlgoTrader, OmniTrader, eSignal, TradingCentral||MT4, MT5|
|Leverage||–||1:30 (Retail), 1:250 (Pro)||1:50||1:1000|
Compare Trading Instruments
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|Celsius||IG Group||Interactive Brokers||World Forex|
Celsius vs Other Brokers
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|Celsius Network is a UK-based cryptocurrency lending and borrowing platform with an in-built exchange and support for trading almost 40 digital tokens.|