What is Celsius Crypto Coin? Is Celsius Network a Scam?
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.
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The premise of Celsius Network is really quite 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.
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?
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.
Is Celsius Network a Scam?
4–10% return on your investment annually?
That’s quite a big promise to make.
Nonetheless, that’s exactly what Celsius Network is doing.
So, in this article, I will explore the good, the bad, and the ugly so all you need to do is read this Celsius Network review and you will know:
- Pros/cons of this platform,
- How to get start and earn interest
- And most importantly, if it’s any good?
On top of that, at the end of this article, you will know if it’s really possible to make 4–10% annually, which is more than any other platform promises.
In case you want to lean more before jumping on board — that’s fair.
In this Celsius Network review, we’ll review the good, the bad, and the ugly about the service.
So, let’s dig in.
Celsius Network — Information for the lender
Having covered why it might be interesting to borrow fiat using crypto-backed loans, let’s check out the other side of the spectrum.
Here’s another example: having invested a fair amount of your capital in cryptocurrencies, you want to do a bit more with them than just let them sit in your cold wallet.
Unfortunately, you aren’t savvy enough to trade them on cryptocurrency exchanges, nor you have the time to learn.
Well, that’s where crypto lending comes to the rescue.
This method allows you to lend your assets to others, and gain interest on the loan.
This way, you will be effectively avoiding the risks that come with trading cryptocurrencies, while still being able to turn out a profit from your original investment.
So, that’s borrowing and lending cryptos in a nutshell for you. You might have noticed it works similarly to the typical loans that you might take out with a bank, with the big difference that, well, there’s no bank involved here.
As a matter of fact, the Celsius Network’s goal is to give everyone the possibility to be a borrower or a lender if they have cryptocurrencies, where the company acts as a facilitator of that service.
They want to eliminate the bank in the process and redistribute 80% of their profits from interest rates within their customer base.
Without further ado, let’s go into a bit more detail about who the people behind Celsius are and the pros and cons of the platform as a whole.
Celsius Network — Information for the borrower
Let’s say you are a cryptocurrency investor and you have most of your funds locked up in crypto.
That’s a smart move, especially if you believe that the value of cryptocurrencies will, as it has until now, rise even more in the future.
But, unfortunately, an unexpected expense comes your way and you need access to a lot of fiat funds right away.
You could, of course, sell a chunk of your crypto holdings, but that you would go against your philosophy of holding on to your asset portfolio for the future.
That’s where cryptocurrency-backed loans start to become interesting. Instead of selling off your crypto, you put them as collateral and get a loan in fiat that you can repay at your own pace.
Now, like with any loan, you should expect to pay interest on the borrowed funds, but it might be a much better solution, especially if the price of your crypto assets goes through the roof in the meantime.
Paying a small interest rate might be the better option instead of selling your crypto for a low price.
In short, the borrowing mechanic allows you to conserve your cryptocurrencies while giving you access to hard cash in case you need it.
Should I 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.
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.