Celsius Network Review
Celsius Network is a UK-based crypto lending platform that lets you earn interest in your cryptocurrencies. The platform was launched in 2017 by Alex Mashinsky and currently, Celsius is managing more than $14 billion of investors’ assets. Learn more about Celsius and how you can earn interest on your crypto in our Celsius review.
Celsius Network News
- 05/04/2021 - Celsius published its new weekly rates
Celsius in Numbers
Regardless of whether it’s a crypto lending site or just a typical peer-to-peer lending platform, we always recommend reviewing a platform’s statistics to get a quick overview of how their services are performing.
|Total loan value:||+ $8.2B|
|Number of investors:||+ 567,000 (users)|
|Loss of investors' money:||0%|
|Average portfolio size:||-|
|Latest financial report:|
Considering that Celsius was founded in 2017, the platform managed to attract over half a million users who deposited assets worth more than $14 billion.
If Celsius’s statistics are correct, it would make it the fastest-growing peer-to-peer lending platform in the world.
Celsius Network has undergone several funding rounds, where the crypto-lending platform received $10 million from Tether as well as another $18 million from investors who participated in Celsius’s equity fundraising which was organized by BnkToTheFuture.
The rapid growth of the platform is expensive however, which is why the company made a loss of $34 M last year.
Celsius Network Referral Code
Celsius Network offers regular promo codes which will give you an additional investment boost. If you are new to Celsius and you want to grab yourself a $40 bonus in BTC, simply sign up with our Celsius referral code 1701120c1a and deposit at least $400 to your Celsius wallet to claim your bonus. The BTC reward will be unlocked 30 days after the initial transfer.
Note that by using our Celsius Network referral code, you will need to deposit a minimum of $400 into your Celsius wallet with your first transaction. Fractional transfers won’t activate your bonus. You will also need to leave your money in your Celsius wallet for at least 30 days. If you withdraw your deposit during the 30 days lock period, the reward will be canceled and there is no option to receive it again.
Celsius has just increased the bonus from $20 BTC to $40 BTC. Get your bonus as long as the offer is valid.
Ready to lend your crypto on Celsius Network? Get free 40$ worth of BTC by investing on Celsius.
Celsius Network Requirements
In order to register on Celsius and deposit your crypto, you will need to fulfill the following requirements.
- Be over 18 years old
- Have a valid email address
- Pass the KYC questionnaire
During the registration, you will be asked to add your personal information such as your name, gender, date of birth and information about your citizenship. During the KYC process, you will be asked to submit your residential address and a photo of your ID. The verification is conducted via Onfido which is a licensed and well-known UK-based technology company.
Note that you need to pass the verification in order to transfer your crypto to the Celsius wallet.
Ready to earn interest on your crypto?
Risk and Return
When lending fiat or crypto to others in exchange for interest, you should always bear the risk in mind.
While many exchanges and crypto lending platforms brag about their insurance policy, you should know that this isn’t of much importance to you if you want to earn interest on your cryptocurrency.
If you use your crypto-insurance account, your cryptos will be deployed (lent to others), in exchange for an interest payment. No insurance covers the default risk.
Your Celsius wallet is not a checking or savings account which means that your funds are not covered by any insurance that would absorb potential losses.
What does Celsius’s insurance cover?
According to the FAQ section on Celsius, the insurance provided by the custodians Fireblocks and PrimeTrust cover digital assets held by Celsius up to $30M.
Note, that it’s not publicly disclosed how many coins are being held by Celsius, as the platform aims to deploy as many assets as possible to be able to earn interest on them.
By depositing money on Celsius, you agree with the temporary transfer of the ownership of your coins to the platform in exchange for an interest.
How does Celsius make money?
Celsius Network has filed for an exempt offering of securities with the SEC in the U.S. We are not aware of any regulations or restrictions that apply to Celsius Network. However, the platform has been temporarily registered as a crypto asset business by the Financial Conduct Authority in the UK (FCA).
Based on our research about Celsius’s compliance in different countries, we can confirm that Celsius Network is one of the most compliant companies within the crypto lending space.
Counterparty Risk - How is Celsius Network secured?
The crypto lending space is full of scams, which is why you should pay good attention to how Celsius is safeguarding your crypto assets.
Apart from the chance that Celsius may misuse your funds, the platform can also be hacked.
Celsius Network uses technologies such as MPC (Multi Party Computation) to increase the security of your assets.
To avoid any misuse of your data from your phone, the platform offers a 2FA, biometric scan or HODL mode which is a security feature that gives you the ability to temporarily disable outgoing transactions from your Celsius wallet.
Celsius Network also allows you to whitelist specific withdrawal addresses only to increase the protection of your account.
To further reduce the counterparty risk, the platform is currently developing a self-insurance feature.
Borrower Risk - How is my investment secured?
Borrower risk represents the risk that the borrower won’t repay the loan. On most European P2P lending platforms, you have a legal contract with every borrower, which isn’t the case on crypto lending platforms.
On Celsius, you simply deposit your cryptos and the platform will distribute your coins to many different borrowers in exchange for interest.
Every loan is secured by crypto assets. This means that in order to borrow $1,000 worth of fiat or coins, the borrower will need to deposit at least $2,000 worth of crypto in order to get the loan.
Crypto loans are a great way to use your coins as collateral and lend money without liquidating your assets (which hopefully will increase in value over time).
The more crypto the borrower deposits, the lower the APR (annual interest rate for the borrower). The value of the collateral in relation to the loan amount is measured as Loan To Value (LTV).
In the earlier mentioned example, we represented an LTV of 50%.
Now, if you are borrowing money from Celsius, you always agree on specific terms which consist of the APR as well as the LTV.
As the value of your cryptocurrency fluctuates, it may happen that during a market crash, your crypto will be worth less, which will increase the LTV.
As soon as the LTV reaches 65% you will receive a margin call, which means that you will be asked to deposit more collateral to match the initially agreed upon loan terms.
You may also repay the loan if you do not wish to add more collateral.
As a borrower, it’s in your best interest to react quickly and resolve the margin call, since Celsius reserves the right to liquidate your collateral when the LTV reaches 80%.
Since crypto loans are overcollateralized, the risk of losing money as a depositor due to the borrower risk is extremely low.
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Interest Rates - How much do You earn?
The difference between crypto interest accounts like the one on Celsius and typical peer-to-peer lending platforms or marketplaces is that the rates on Celsius change every week while on P2P platforms, the rate is given for the entire period of your investment.
Celsius gives you the opportunity to earn interest on more than 30 cryptocurrencies or stablecoins. The rates are adjusted every week to reflect the current market conditions.
The most dominant coins like BTC or ETH will yield typically between 4% and 6% interest per year, while some stablecoins offer up to 17% annually.
On Celsius, you can either choose to earn interest in the same currency as you have deposited or earn interest in CEL tokens which is the utility token from Celsius that allows you to earn higher interest rates.
Celsius created their own currency which is the CEL token. Holders of this digital currency will earn higher interest rates on their deposits or get better terms when borrowing money.
You can also choose to receive interest in the CEL currency, which is very attractive as the value of the token has increased significantly in the past few months.
In order to earn higher rewards, you have to hold a certain percentage of your portfolio in CEL tokens. When you hold 25% or more of your portfolio in the CEL token, you will receive 25% higher interest rates on your deposits.
This is a very attractive way to use the utility token which is something many other crypto lending platforms are copying from Celsius.
Is Celsius Safe?
There are many scams in the crypto space, which is why we highly recommend researching the management of the platform where you deposit your hard earned money.
The same is valid for Celsius Network.
Who runs the company?
Alex is a known figure in the technology space. He has founded eight startups and raised more than $1B with over + $3B in exits.
S. Daniel Leon is the managing director of Governing Dynamics which is a venture capital firm. Daniel is also the COO of Celsius Network.
Where is Celsius Network based?
Celsius Network Limited has its headquarters in London, however, the platform has several offices in the U.S. as well as in Tel Aviv.
Are there any suspicious terms and conditions?
We always advise you to read the terms and conditions of every platform to better understand your legal rights when depositing your crypto assets.
Even on Celsius Network, there are many terms and conditions which you should pay close attention to.
10. Risk Disclosure
It is important to mention that your Celsius wallet isn’t a savings account and is not backed by any deposit protection scheme. You might lose all your money when lending your cryptos to others.
Celsius reserves the right to delay your withdrawals for up to 3 days. This is a standard term that is being used by most of the crypto lending platforms.
Not Your Keys Not Your Coin
When transferring cryptos to Celsius (or any other centralized crypto lending platform), you are not the owner of the private keys anymore which means that Celsius is the legal owner of your coins.
You, as a depositor will receive interest in exchange for temporarily transferring the ownership of your coins to Celsius.
Celsius Network will lend your money to others or participate in rehypothecation of collateral.
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19. Conversion Rates
You should certainly pay close attention to the conversion rates on Celsius. Celsius reserves the right to use their own rates and change them without prior notice.
23. Disclosure of Celsius Wallet Information
Celsius also reserves the right to disclose any information of your Celsius wallet to third parties in order to comply with the law.
Potential Red Flags
Currently, we have no knowledge of any potential red flags.
Curious about other platforms? Head over to our ⚖️ P2P lending platform comparison to get a quick overview of the currently available platforms.
What’s Our Opinion On Celsius Network?
Based on our extensive research about Celsius, we believe that it is a legitimate business with very big ambitions.
The CEO is making regular appearances and explaining all there is to know about Celsius. We have watched several interviews, where he is diving deeper into specific topics concerning the crypto lending platform.
Alex's appearances leave us with a good impression of Celsius. Unlike many other CEOs in the industry (i.e. Nexo’s CEO), Alex isn’t shouting around his Bitcoin price predictions but shares actual and valuable information which is, otherwise, hard to obtain.
Celsius is investing heavily into the development of the platform which you can see on a weekly basis.
While Celsius is mainly a mobile-first application, the platform uses the latest encryption technology to provide the highest protection in the crypto lending space.
While there is certainly always room for improvement, Celsius is one of the few platforms that are compliant with many legislations which increases our trust into Celsius services.
If you are someone, who is interested in lending crypto in exchange for an interest, Celsius is one of the best and most secure options to do so.
Ready to earn interest with Celsius?
As mentioned earlier, Celsius is a mobile app which gives you the option to earn interest on your crypto deposits or borrow money for attractive terms.
If you want to deposit cryptos and earn interest on them, you should first check whether your cryptocurrencies or stablecoins are supported on a dedicated crypto lending platform.
Celsius Network supports currently the following 40 coins:
|Earn interest on||Borrow in|
|ETH, CEL, BTC, MATIC, SNX, TAUD, TUSD, DAI, USDC, THKD, PAX, GUSD, TGBP, TCAD, USDT, BUSD, DOT, AAVE, BNT, XAUT, WDGLD, DASH, PAXG, COMP, BCH, UMA, LINK, EOS, LTC, BAT, ZRX, XLM, ETC, KNC, XRP, UNI, Zec, MANA, BSV, OMG||USD + all supported coins|
The rates for depositors change every week. You can earn up to 17% interest per year on selected stablecoins. The borrowers can lend for as low as 1% APR given the fact that they have sufficient collateral to back the loan.
What’s worth mentioning is that users from the U.S. are able to earn slightly better interest on BTC but aren’t able to borrow money on Celsius. If you are from the U.S. and you plan to borrow money as well, BlockFi is going to be the better option for you.
If you are planning to borrow money on Celsius, the minimum loan amount is just $500 with a minimum loan term of 6 months which is truly exceptional in the crypto lending space.
The CEL token is Celsius’s utility token which offers you a better reward rate for your deposits and better terms when borrowing money.
Celsius’s CEL token can be traded on exchanges like Liquid, Swithceo, Uniswap and Totle. You can also purchase the CEL token.
In comparison to the DEB token on Debitum Network, the CEL token is actually constantly increasing in value, which means that by holding the token, you are increasing your portfolio value.
When depositing your crypto on Celsius, you will by default receive the interest in CEL tokens. If you wish to receive the interest in the deposited cryptocurrency, you will need to adjust the settings in your Celsius mobile app.
Celsius Network also offers you the option to send and receive crypto from other Celsius users for free.
Depositing or Buying Crypto
After you have created your Celsius account, you need to add coins to your Celsius wallets. Note, that every wallet is meant only for the selected cryptocurrency. If you chose the wrong wallet to transfer your coins, you might lose all of your assets.
You can simply copy the wallet’s address from your Celsius app (or use the QR code) to add it as your withdrawal address on your crypto exchange (or hardware wallet).
Celsius also offers you the feature to buy coins directly from your mobile phone. You can purchase crypto with a credit card or bank transfer.
While Celsius doesn't charge any fees for the purchase of coins, its partners do. Simplex charges a 3.5% fee or $10 minimum fee with a special rate of 2.99% for EEA and UK residents. Wyre charges a 0.1% fee, and Conify charges a 0.5% fee. The partner fees are included in the price that you see on the screen when calculating the exchange rate.
Please note that the difference between the exchange rate on Coinbase on a $1,000 transaction (0.47 ETH) and Celsius’s rate (minus fees) is quite significant. As we write our Celsius review, you would get 0.435 ETH for $1,000. The difference is $80 or 8% on a $1,000 transaction.
So by buying crypto through Celsius, you will pay a steep fee to their cooperation partners. If you prefer to send your crypto from your wallet to Celsius, you will also need to pay a “gas fee” which is a fee for your transaction. The cost of this transaction fee varies depending on the demand on the blockchain.
If you plan to send crypto to Celsius and earn interest on it, you should send a larger amount and hold it for a longer period to earn back the fees which you have paid for the transfer.
How Fast Can You Withdraw Your Money?
According to Celsius' terms and conditions, it may take up to three days to withdraw your digital assets. Note that your deposits are deployed and not store on a cold storage. Your withdrawal request will be verified immediately, however, it may take a few days until your transaction is processed.
If you have previously invested on a European P2P platform, you might be used to relatively good customer support.
Well, this isn’t something you should expect on Celsius, as the customer support is non-existent. The platform didn’t get back to us with an answer to any of our questions.
If you plan to use Celsius Network, you will need to rely on the FAQ section of the platform to solve all of your questions. The platform also collects questions from the users which are being answered by the CEO Alex Mashinsky in their regular AMA sessions.
Celsius Review Summary
Celsius Network is a legitimate crypto lending platform where you can earn interest on your crypto deposits. The platform is one of the most compliant players in the crypto lending space which is certainly something that you should pay attention to. Celsius offers you the chance to earn up to 17% interest on your crypto which is something you won’t on many other platforms.
Key Takeaways from our Celsius Network Review
- Transparent terms and conditions
- High rates and attractive loan terms
- Top grade security
- High rewards for CEL holders
If you decide that lending your crypto to others is worth the promised interest rate, you can use our link and get yourself an additional bonus of $40 in BTC.
Interested in learning more about how Celsius compares to other platforms? Have a look at our comparison between Celsius and BlockFi.
Ready to lend your crypto?
Or explore other crypto lending platforms.
Where can I buy CEL tokens?
You can buy the CEL token on IDEX, Liquid, Demex, Uniswap, Totle, Loopring, Dharma and Bittrex. You can also buy the CEL token directly from the Celsius app with your fiat.
Is Celsius Network trustworthy?
Judging by our research about the platform and its management, we believe that Celsius Network is one of the best and most trustworthy players in the crypto lending space.
Is Celsius Network regulated?
Celsius Network is following best practices in several jurisdictions. The platform is, however, not regulated by any specific regulatory authority.
Is Celsius better than BlockFi?
If you are from the U.S. and you don’t plan to borrow money, Celsius Network is the better fit for you as their rates for your cryptos are higher as compared to BlockFi. Read our BlockFi vs Celsius comparison to learn more.
|Company:||Celsius Network Ltd|
|Address:||1 Bartholomew Lane, London, UK|
|Opening Hours:||Weekdays from 9AM to 4PM|
|Social Media:||, , ,|