This Celsius review has revealed that Celsius also known as CEL is both a platform as well as an app, connecting lenders and borrowers from around the world, except the United States as result of strict regulatory requirements.
Choose your quick section of our Celsius review below.
A Quick Overview of our Celsius Review:
Users can choose between four different loan periods namely 6 months up to 3 years. There are no penalties for repaying and/or closing the loan deal earlier and users can renew the loan when the expiration approaches.
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What is Celsius?
Celsius is a blockchain-based lending platform that allows users to borrow cash or CEL, which is the native token of Celsius. Users can also lend their CEL or cash to other users and in exchange, they can earn interest.
Key Features and Takeaways of Celsius
Celsius is a popular lending platform and its token, CEL, is one of the top 100 cryptocurrencies in the world. Celsius has the following key features and takeaways:
- Celsius offers a total of 41 lendable coins spread across various stablecoins, cryptocurrency coins, and tokens.
- Celsius is both a platform as well as an app, connecting lenders and borrowers from around the world, except the United States as result of strict regulatory requirements.
- Users can either send their coins to Celsius to be lent and collect the interest rates, or they can put their coins as collateral for a loan which will be issued to the user in US Dollars.
- Celsius features an LTV, a loan to value ratio which represents the size of the user’s loan that they can take proportional to the value of the property that secures the loan. This is also used to determine the level of risk associated with the loan. Higher LTV suggests more risk as the assets behind the loan are less likely to pay the loan off as the LTV ratio increases.
- Celsius’ LTV ratio can be divided into three levels namely 25%, 33%, and 50%.
- Users can choose between four different loan periods namely 6 months up to 3 years. There are no penalties for repaying and/or closing the loan deal earlier and users can renew the loan when the expiration approaches.
- Celsius network aims to be an all-in-one banking solution which is specifically aimed at disruption of the traditional mainstay services that are offered by conventional financial institutions.
- Celsius, apart from offering the opportunity to earn interest and borrow either cash or crypto also offers the use of crypto to send money and make payment.
- Celsius offers its CelPay app, allowing users to send or receive cryptocurrencies and pay anywhere in the world in a quick, secure, and easy way without being subjected to fees.
- The best way to experience CelPay is to use with others who use the same app, to ensure that the full features of the app can be accessed by both parties.
- According to statistics, 90% of deposits on the Celsius network come from regular users while 100% of borrowers are institutional clients.
- Celsius’ main earnings originate from lending retail deposits stemming from regular users to institutions and corporations.
Celsius Mining
CEL tokens cannot be mined, however, users can stake their CEL on the platform, which will allow them to earn interest. The staking system that is used by the Celsius network is unique and it is a four-tiered system that works in the same way as account levels found at forex and CFD brokers.
The available tiers are bronze, silver, gold, and platinum and the tier according to which each user is classified will depend on how much CEL they have staked on the platform.
This is a crucial distinction as the rates that the user will see advertised for interest are those which are paid to platinum users, requiring a stake which is equal to at least 20% of the user’s portfolio with the Celsius network.
For example, if the user has 10 000 ZAR worth of CEL, thus 100 CEL (at the current exchange rate between the two currencies), the user must have 2 000 ZAR, or 20 CEL tokens staked, allowing the user to benefit from platinum-tier rewards.
To receive interest payments from the Celsius network, users must stake CEL tokens. The more users stake, the higher tier they will qualify for and the greater the interest they will be paid on their staked tokens.
Bronze Tier
In this tier, users who have between 5 to 10% of their portfolio in staked CEL tokens are placed, allowing them with access to 5% of bonus rewards and a 5% discount on loan interest.
Silver Tier
In the silver tier, users hold between 10 to 15% of their portfolio which is staked in CEL tokens. This allows them to receive 10% bonus rewards along with a 10% discount on loan interest.
Gold Tier
In this tier, users hold between 15 to 20% of their portfolio staked in CEL tokens, entitling them to 20% bonus rewards along with a 20% discount on loan interest.
Platinum Tier
In this tier, users hold between 20 to 100% of their portfolio in CEL tokens, allowing them access to 30% bonus rewards in addition to 30% on loan interest.
Pros and Cons
| ✔️ Pros | ❌ Cons |
|---|---|
| Celsius offers rewards of up to 15% APY which are paid out weekly | Minimal educational resources which may present beginners with a learning curve |
| Celsius has an easy-to-use mobile platform, CelPay that allows anyone with access | Limited to cryptocurrencies |
| The platform is available in more than 100 countries | |
| Allows for instant, fee-free payments when users use the CelPay app | |
| Celsius has an impressive loyalty program | |
Transaction Fees
| 💰 Type of Fee | ℹ️ Information |
|---|---|
| Interest rates charged | From 4.95% to 8.95% |
| Deposit as Lender | From a minimum of 70 ZAR |
Should you buy Celsius?
The CEL token has been on a steady upwards trend in the past few months, which is good for both Celsius and potential investors. The Celsius network is large, and it is being used by many people despite being in competition with several other networks that offer the same lending services.
Celsius is also a safe option where cryptocurrency lending is concerned and Celsius is considered a top player in this specific space, making investment in it worth it. An advantage that investors have, is that they can become lenders and earn interest back on the CEL that they put up to be borrowed by other users.
Investors who wish to offer their CEL are not subjected to minimum balances or fees, and there are pay-outs done weekly. The term for earnings on the Celsius network is “rewards” and they differ based on the type of cryptocurrency and the loyalty tier of the investor.
How to buy Celsius (CEL)
Step 1 – Register an account with Gate.io
Navigate to the official Gate.io website and select the option to “Sign Up” from the homepage.
Complete the online registration form by providing country/region, a selected username, email address, and user-selected password. Read and accept the User Agreement and Privacy and select “Next”.
Create a fund password and select “Create Account”. Complete the “I am not a robot” reCAPTCHA. Check your email inbox for the activation email and click on the link in the email. If the link does not work, you can copy and paste the URL into your browser.
Log into your account using your credentials and complete the reCAPTCHA.
Check your email again for the verification email that contains the 6-digit code and click on “Confirm”. Enter the code that you received into the blocks provided and select “Log In” to proceed.
Before you can use the platform to purchase Celsius/CEL and other cryptocurrencies on Gate.io, you must complete the “Know Your Client” or KYC procedure to verify your identity and your proof of residence.
Click on “KYC Now” at the bottom of the webpage to start the process.
Select whether you are an individual or an organisation by selecting “Verify Now” under the relevant option.
Select your country from the dropdown list, enter your full name followed by confirmation thereof. Select your ID document type and provide your ID Number as shown on your official ID Document.
Click on the first image to upload a clear photo of the front of your ID document followed by a clear photo of the back of the document.
Next, write your Gate.io unique ID on a piece of paper and take a photo of yourself holding up your identity document (front) and the paper containing your unique ID.
Once you have done this, click on “Confirm and Submit”.
Next, you must enable the Timed One-Time Password (TOTP) to be able to log into your account. This can be done by clicking on “Set Now” at the bottom of the page.
On the new page that loads, select “Click here” to set up Two-factor Authentication.
Download Google Authenticator onto your mobile device by making use of any of the abovementioned methods.
Follow the steps indicated to add your Gate.io account by scanning the QR code or entering your unique key.
Enter the TOTP, your fund password, and the code sent to your email address and select “Enable Two-factor Authentication”. With this setup, you must use the Google Authenticator app to sign into your account every time.
Step 2 – Deposit funds
You must note that Gate.io is only a crypto-to-crypto exchange which means there is no fiat gateway. The only way through which funds can be added, is to transfer an existing crypto into your Gate.io wallet.
CEL can only be bought through Tether/USDT or Bitcoin/BTC while it can be traded with USD as a futures contract.
Navigate to the deposit/withdrawal section by hovering over your account and selecting the relevant option. Choose from the list of coins in which you can make a deposit and select “deposit” next to the appropriate coin.
You will be redirected to a page which generates a deposit address for the coin that you wish to deposit.
Copy this address, or scan the QR code, into the wallet where you are making a withdrawal from and depositing to Gate.io and wait for the relevant blockchain to confirm your transaction. Once the transaction has been completed and verified by the nodes on the chain, the coins will be sent to the Gate.io wallet and you can start trading CEL.
Step 3 – Explore your trading options
Gate.io offers a variety of ways through which cryptocurrencies can be obtained. Each of these can be explored individually depending on your trading needs and objectives.
To start trading CEL, select the option from the “Trade” Menu. Enter “CEL” into the search bar to see which trading options are available.
For spot trading, for instance and as an example, select CEL_USDT or CEL_ETH. Once you have selected, you will be directed to the exchange page which corresponds to the cryptocurrency pair CEL/USDT or CEL/ETH.
Here, you will see that you have the option to buy or sell CEL either as a limit order, grid trading, or as a time condition. The most common trading method is that of limit trading and thus it will be used for this guide.
Step 3 – Buy CEL through via Limit Order
To buy CEL and create a limit order for it, you can enter the amount of CEL you want to purchase, and the price you want to buy it at in USDT. This tool will tell you what the overall cost is in USDT, or any other chosen counter-currency, which will be deducted from your wallet once the order has been executed.
Step 4 – Sell CEL through via Limit Order
To sell CEL, find the panel under the chart and create a limit order for USDT according to your own preferences. Note that with a peg to USD, CEL that you exchange for USDT will hold the flat value that it has despite market conditions in the cryptocurrency market.
Step 5 – Withdraw funds
To withdraw funds, you will use the same page in Gate.io which was used to make a deposit.
Click on the deposit/withdrawal option on your Account dropdown and find the wallet of the currency that you wish to withdraw. You can do this easily by using the search bar provided.
Instead of a deposit address being generated, you will do this on the exchange, or the wallet being used as the destination for withdrawal of funds from Gate.io. Paste the address of the receiving wallet in the field provided and provide your Gate.io fund password, email code, and TOTP before selecting “Submit Request”.
Frequently Asked Questions
When was Celsius first launched?
Celsius was first launched in 2017 and its native token, CEL, was issued in 2018.
Who founded Celsius?
Celsius’ founders are Alex Mashinsky, Nuke Goldstein, and S. Daniel Leon.
What is “ICO”?
It is Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.
When was Celsius’s ICO and how much did it raise?
Celsius’ ICO was held in 2018 during which more than 700 million ZAR was raised.
Is Celsius legit?
Yes, Celsius is a legit cryptocurrency network.
What is Celsius’s total supply?
The total supply of CEL is 695 658 161 tokens, with 522 197 452 CEL in circulation and the remaining 117 000 000 locked by the platform to fund future developments.
What is the purpose of Celsius?
Celsius is a blockchain-based lending platform that allows users to borrow cash or CEL.
On which blockchain is Celsius based?
Celsius is based on its own blockchain.
Does Celsius work with smart contracts?
No, Celsius does not work with smart contracts.
Does Celsius have potential to become more valuable?
Yes, Celsius has the potential to become more valuable as blockchain technology associated with lending/borrowing is more widely accepted.
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