Crypto is the vehicle that will take you to financial freedom.
Celsius is the fuel that makes you go further, faster.
Bold claims for sure, so lets back up and understand what Celsius is, how they differ from their competitors and why you should consider keeping some of your crypto stash with them.
What Is Celsius Network
At the most basic level, Celsius Network, or Celsius as they are colloquially known is a platform that allows you to earn yield on your crypto, borrow against your crypto and instantly send crypto to others through their CelPay feature. They support earning yield on a growing number of coins, and are regularly adding new ones. At the time of writing Cardano had just gone live on their platform and more are in the works.
You can use your crypto currency as collateral to borrow against at very attractive rates, putting down anywhere from 25% loan to value, to 50% loan to value. This allows you to access your crypto without selling it, avoiding capital gains tax and continuing to enjoy any appreciation on your coins.
How is Celsius Different?
If you’ve been looking at ways to generate yield on your crypto, you’ve likely by now heard of BlockFi and Gemini. Two Centralized Finance or CeFi services where you can deposit your coins, earn yield and use your crypto as collateral to borrow against.
Celsius has a distinct advantage over these services in earning yield. BlockFi and Gemini typically rely on one or two ways to earn yield, such as GBTC arbitrage in the case of BlockFi and institutional lending in the case of Gemini. Celsius has no fewer than six distinct ways to earn yield:
- Institutional lending
- Retail lending
- Bitcoin mining
- Providing liquidity to Decentralized Finance (DeFi) platforms
- Taking advantage of arbitrage opportunities on DeFi
- Lending to exchanges and OTC desks
This allows Celsius to be more resilient to changes in yield generation in any one particular area, and offer more reliable and higher yields.
By way of recent example, BlockFi recently lowered their rates so that for any Bitcoin over 0.35 BTC you will earn 0.1% in interest. Even my bank savings account offers higher interest rate. Gemini offers a slightly better but not in any way respectable 1.49% on your Bitcoin.
For comparison, Celsius offers 6.2% on your first Bitcoin and 3.51% for every Bitcoin thereafter.
The situation is equally as skewed in Celsius’ favor for loans. BlockFi loans start at 4.5% with a minimum loan size of $10,000 and a 2% loan origination fee. Celsius offers loans for as low as 1%, with promotions in the UK and California of 0% at the time of writing and no loan origination fee.
Higher yield and lower loan rates should make it clear that Celsius is the preferred place to keep your crypto.
But that isn’t even the start of why you should consider Celsius.
Celsius Is The Way
There are three more powerful reasons why you should choose Celsius.
They give 80% of all their revenue back to the community. That’s right, they have made a public commitment to give 80% of all revenue back to the community. They back up this claim with an innovative Proof of Community feature that allows you transparency into what Celsius is earning and how it is distributed. The data is available to the community, and many folks have already taken to building innovative apps on this data, such as the Celsius Proof of Community Rewards Data.
The CEL token aligns Celsius even closer with their users. By holding CEL you can participate directly in the success of Celsius, earn interest on your tokens, enjoy higher interest rates when you choose to earn in CEL, and lower loan rates if you hold a certain percentage of CEL token in your account. CEL is a utility token that appreciates in value as more users earn more in CEL token on more assets. This CEL Token Flywheel is currently benefiting from more than $20 Billion in assets under management and almost 65% of users choosing to earn in CEL for at least part of their rewards.
The CEL token supercharges the Celsius business in another way too. Celsius is actively looking to use CEL token as collateral to borrow additional assets like BTC and USDC to lend out. The higher the value of CEL token the more Celsius can borrow and the higher the yield Celsius can offer.
Celsius puts security first and foremost. Security is a constant battle between those seeking to keep your assets safe and dastardly attackers looking for any opening to pilfer. Celsius has all you’d expect in terms of security – two factor authentication, address whitelisting, expert and growing security team. They also lead the way with innovations like HODL mode that adds an extra layer of security, and soon an optional self-insurance for your coins should the worst happen.
Join Celsius Today
There is so much more to say about Celsius, from their APIs that allow others like Voyager to earn interest, to their large and passionate community of Celsians. If you’re looking to learn more about Celsius I highly recommend this article by Derek Tweed, and follow me on Twitter where you’ll get to meet the rest of our community.
If you’d like to get started on Celsius I’d be grateful if you’d use my referral code when joining Celsius – just enter code 1946017dd6 when signing up and you’ll earn $50 in BTC with your first transfer of $400 or more. And if you’d prefer a non-affiliate link you can use this one https://celsius.network.
If you have any questions about Celsius, please don’t hesitate to ask me on Twitter, or in the comments down below.
As always, this is provided for education and entertainment purposes only. Not financial advice.