UPDATE: Celsius and certain affiliates have filed voluntary petitions for Chapter 11 Bankruptcy relief to implement a restructuring. Information about the Chapter 11 filings, including Court documents, can be found at cases.stretto.com/celsius.
Two of the most trending raves of the moment in the cryptocurrency sphere are crypto interest accounts and lending programs. These options have succeeded in doing away with greedy intermediaries and promoting interest-yielding cryptocurrency accounts and low-fee lending that accepts digital assets as collateral.
They have also paved the way for platforms to offer higher interest rates to savings accounts and make loan rates considerably lower compared to conventional alternatives.
The Celsius platform has experienced massive growth since it provides ways for users to earn passive income on the crypto assets they own. Presently, Celsius Network is one of the leading cryptocurrency lending businesses in the world.
Key Points
- Celsius Network enables crypto owners to enjoy passive income from their digital assets.
- Users will receive interest on their deposited crypto holdings every week.
- Users can borrow from Celsius Network using their cryptocurrency as collateral.
- Celsius Network approves loan requests without any delay.
What is Celsius Network?
Celsius Network is an app that allows users to borrow cryptocurrencies, and it is available on Android and iOS devices. In the same way, you put money in a savings account, Celsius rewards you with interest every week when you store your crypto funds on its platform. The mode of operation is very straightforward:
- Deposit your cryptocurrency in the Celsius app.
- The company lends funds to retail and institutional borrowers.
- Revenue from the transaction and other activities is paid to you every Monday.
- Users can also access loans by using their cryptocurrency as collateral. They can receive cash or stablecoin loans on different terms. Celsius does not demand a credit check, unlike most conventional loan services. Loan requests of users are typically granted within minutes.
Celsius Network isn’t exactly a wallet, but it can perform some of its functions like sending and receiving supported cryptocurrencies, which it does through CelPay. There are no transaction fees for using CelPay, and it allows users to send cryptocurrency via message, a link, or directly in-app.
How Safe is Celsius Network?
Celsius Network is a centralised platform which presents a risk to users’ assets since they will no longer be custodians of their funds once they deposit them into the Celsius platform. The company was established in 2017 by Alex Mashinsky (CEO) and Daniel Leon (Founding President and COO).
The past exploits of Mashinsky speak for themselves, such as making cell phone service and free WiFi available in New York subways, creating Voice over IP (VoIP), and bringing WiFi on U.S. flights.
Leon, who is a social entrepreneur, has a good track record; serving in leadership positions at several organizations, including GroundLink, Atlis Labs, and Beyon3D.
Celsius Network already has a user base of more than 101,000 people globally and manages assets worth more than $730 million. Furthermore, close to $5.5 billion in loans have been sourced by the platform, and over $12 million has been paid out as interest.
It is also worthy of note that Celsius Network is a custodial wallet platform. The company exercises control over your cryptocurrency wallet keys.
Can Celsius Network Be Used To Make Money?
Celsius Network is perfect for individuals seeking passive income, but this time, it will be generated from your cryptocurrency holdings. Basically, Celsius Network helps you make money by paying interest on your crypto holdings.
To set this in motion, you are required to fund your Celsius wallet with cryptocurrency. After doing this, the company pays you interest earned every Monday. It is up to you to decide in what form the interest should be paid into your wallet, whether in CEL (the native token of Celsius Network) or like-kind.
The company also offers the opportunity to earn interest on gold. Celsius does not deal in actual gold, instead, it utilizes XAUt, an ERC-20 gold-backed token.
Warning: Celsius Network is yet to provide insurance for the deposits of users. So, in the event of a hack attack, your assets may be lost.
Conclusion
A lot of crypto assets are qualified to receive interest payments at Celsius Network. Some of them include Celsius Token (CEL), Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), EPS (EOS), Bitcoin Cash (BCH), and lots of stablecoins.
Celsius Network offers better rates to borrowers and depositors, compared to other crypto loan platforms and traditional loan services.
