In this Celsius Network review, we are going to look at a peer-to-peer lending company that allows you to invest or lend on your crypto.
Celsius Network Review
Cryptocurrency is now widely accepted as an investment or as a mode of payment all over world. Realizing that it is the way to go, people are hopping on the crypto bandwagon by involving themselves with Ethereum, bitcoin and many other major cryptos.
What is Celsius Network?
Celsius Network is a peer-to-peer, crypto lending company that facilitates borrowing and lending to those in need of fiat but want to keep their crypto. With Celsius, borrowers enjoy low-interest rates, whereas lenders get a fair share of the income. Celsius allows you to bank your money without going to the bank. It has positioned itself to offer banking services to millions of people simply by using mobile phones.
Celsius Network allows you to have a mobile wallet app where you can deposit and spend the cryptocurrency. Once you register with them and deposit Ethereum, Bitcoin, or any other supported coin, Celsius lends the deposits to hedge funds, institutional traders, traders among other corporate partners. The platform also lends to their customers who use digital assets as collateral. This is how you earn interest. Celsius claims to pay as much as 80% of their revenue to their community as interest.
Celsius has designed its network to offer you the necessary protection when lending through its platform. Anytime Celsius lends money, they keep a small percentage of the earnings in the pool to protect you if you incur a loss due to lending.
Celsius Security/Custody Review
Most people cannot decide between holding their own cryptocurrency and letting someone hold it for them. Looking at the traditional financial world, most people keep their money in financial institutions such as banks. This is because it is unsafe and impractical to keep large sums of money in the house because if fire breaks out or a thief breaks into your home, you could lose your money in seconds. On the other hand, if there is a robbery in the bank, your savings will still be safe because the bank insures your money.
However, this is not the case with cryptocurrency because unlike money, cryptocurrencies are stored on their respective blockchains. This means you can keep your crypto assets without necessarily requiring the help of a third party. Unfortunately, for most people, this is not as simple as it sounds. You’ll need to possess a certain level of preparation and knowledge. In fact, if you don’t take the required precautions, you can easily lose your assets permanently.
On Celsius, you can enable 2FA (two-factor authentication) to prevent unauthorized access to your account. However, that is only the first layer of security. You will also be required to enter a pin for every withdrawal, inability to change wallet address without email confirmation and manual confirmation for withdrawals of assets worth more than $20,000.
Unlike other platforms, Celsius uses a hybrid storage model that ensures less risk and returns on your crypto deposits, something that isn’t possible with cold storage. The assets you deposit are held with their custodian, BitGo and are insured for up to $100 million. The Celsius model is beneficial to users, as it does not require lockup periods or charges to access your assets.
Earn Up to 10.5% on Stablecoins
Celsius gives you the opportunity to earn up to 10.5% APR on crypto when you deposit coins in your Celsius Network wallet. According to the statistics released on August, the earnings on popular stablecoins including USDC, GUSD, TUSD, PAX, DAI and USDT were all above 10.53%. You can also get a crypto-backed loan on the platform starting from 4.4% APR.
VoIP to MoIP, a tech veteran’s journey to ‘maximizing community’
Although you may be unaware, Alex Mashinsky, the CEO of Celsius has had an impact your life in one way or another beginning in the 1990s. This is when he wrote the original patents for voice over IP (VoIP) that disrupted telephone monopolies. Today, billions of people use the technology for free through platforms such as Whatsapp and Skype. In 2017, he founded Celsius, a P2P decentralized platform that is creating moIP (Money over IP) to disrupt the banks. He hopes that it will grow from early crypto adopters to mass adoption with billions of users.
- No fees
- Low APR on loans
- Earn high interest rates on balances
- Relatively new platform
Celsius Network is a great option to earn high interest on your crypto balances as well as take out loans at low APRs. The platform offers a secure, nontraditional place to hold or use your crypto currency. Although the company is relatively new, it is off to a great start and one should expect bigger success in the future.
Other Investing Resources
Looking for more options? You might want to read some of our other crowd investing and peer to peer lending reviews. There are many peer to peer lending and investing platforms currently available, and you can diversify your interest income by using several of them simultaneously.
Are you already investing in Celsius Network or in any other investing platform? Leave your thoughts and questions about this Celsius Network review below.