Why Choose Celsius Network?
With a plethora of CeFi & DeFi options in the crypto space, why should you consider Celsius Network?
The crypto industry is ever-expanding and blockchain technology is here to stay. The same can be said for Centralized and Decentralized Finance. With so many companies and platforms offering crypto yield and passive income opportunities, how do you compare and decipher the advantages and disadvantages of using each of them. Here are some questions that need to be answered before you can fully trust the company and technology:
- how do they generate revenue and profit?
- are those strategies sustainable short, medium and long-term?
- how long has the company been around for?
- who’s on the team and board?
- what kind of experience do they have in finance, lending and borrowing?
- are they compliant with regulations? where are they located? any other regulatory concerns now or in the future?
- how secure is their platform? have they been hacked before?
- what features and functionality do they support?
- what assets do they support?
- how is their track record, reviews and customer support?
- how transparent are they when it comes to strategies, finances and milestones?
- are they a public company?
- what is their AUM (assets under management) and number of users?
- where can they operate?
The space is very competitive, so why should you choose Celsius Network as your go-to CeFi platform to invest, lend, pay and borrow?
Here are the top 10 reasons why you should choose Celsius Network:
Sustainable Reward Rates
When comparing offerings, many users choose a platform that offers the highest APY rates instead of looking at the bigger picture. How sustainable are those reward rates? Where is the revenue and profit generated from? And how sustainable are those strategies in the short to long-term? Answering these questions will give you a better perspective on how sustainable or consistent the published reward rates are.
Consistent reward rates are better than volatile rates that pay you unsustainable yield for a short period before they have to reduce them dramatically and very quickly.
So why choose Celsius Network based on reward rates? Celsius is the leader in offering sustainable and awfully consistent reward rates across 40+ assets. Some reward rates are the highest in the industry too. In addition, up to 80% of their gross revenue is returned to the Celsius community in the form of rewards. They are the only company to offer this amazing opportunity to generate passive income and consistent weekly cash flow on your crypto holdings. No other company comes close!
Crypto-Backed Loan Options
An important segment of the CeFi and DeFi space is the ability to get crypto-backed loans. Since selling crypto into fiat is a taxable event, sometimes it makes more sense to take out a loan against your crypto holdings, which is NOT a taxable event in most jurisdictions. By doing so, you can ‘unlock equity‘ while still enjoying the potential for capital appreciation by holding on to your crypto assets.
But not all loan offerings are the same. From 10% loan-to-value (LTV) to 150%, the borrowing landscape in crypto is varied, sometimes complicated and confusing.
So why choose Celsius based on loan options? Celsius Network not only provides the LOWEST interest rates for secured crypto loans, but they also offer the BEST loan options.
Here are the current crypto-backed loan options offered by Celsius and another reason why you should choose Celsius for borrowing:
- 0% APR / 25% LTV (available in California and the United Kingdom only)
- 1% APR / 25% LTV
- 6.95% APR / 33% LTV
- 8.95% APR / 50% LTV
In addition, Celsius allows borrowers to choose from over 40+ supported assets for their loan collateral. Loan proceeds can be in:
- Fiat (USD) with a $25,000 USD minimum
- Stablecoins (USDC, USDT, TUSD, GUSD, PAX, DAI) with a $500 minimum
Another reason to choose Celsius Network is because they plan to launch a ‘multi-collateral’ loan option, allowing borrowers to use multiple assets as loan collateral for a single loan.
Security & Compliance
One of the most important factors when choosing a CeFi or DeFi platform is the company’s security measures and strategies as well as compliance with local/national regulations.
When it comes to security, Celsius is a leader in this space. Some of the more visible security measures of the Celsius platform include:
- HODL Mode that restricts all outgoing withdrawals and CelPay
- Whitelisted withdrawal addresses for each asset
- Biometric / 2FA security login
- Automatic account logout after a specified amount of time
- Additional email confirmations for withdrawals, changes to and additions of whitelisted withdrawal addresses, HODL Mode and changes to profile information
Celsius takes compliance with regulations very seriously. As such, they only offer and promote services and products that are considered compliant in your jurisdiction. Here are the current compliance certifications:
- ISO 27001 (April 2021)
- Delaware C (February 2018) for Company: 6748208
- FinCEN MSB (March 2018) for Company: 31000192265811
- SEC Regulation (September 2020) for Company: 021-370838
- SEC Regulation (April 2018) for Company: 021-311253
Corporate transparency is a mission and mandate of Celsius Network. In order for crypto investors to fully trust a company, Celsius knew that being transparent and releasing as much information about their best practices, strategies, compliance, risk and milestones was the best course of action to gain trust from the community.
In contrast to many other crypto companies and platforms, Celsius Network is by far the most transparent when it comes to being honest and forthcoming about many aspects of their business and community. This builds long-term trust.
Transparency can be summed up with the Celsius ‘Proof of Community‘ feature. Launched in 2021, the Celsius ‘Rewards Explorer‘ (as part of the ‘Proof of Community’ strategy) allows users to see all transactions (deposits, withdrawals, reward payouts etc) on the blockchain. There’s also an upcoming Celsius Horizen Blockchain Audit.
The Celsius community is one of the largest and most engaged crypto communities out there. Wherever you look, Celsius Network is approachable through various social media platforms as well as community hangouts throughout the world.
Community members have even derived the term: Celsians. The motto: “Do good, and then do well” is oftentimes used as well as “Unbank Yourself”.
Alex Mashinsky (CEO) personally hosts a weekly Friday AMA on YouTube, giving the community updates on the company, crypto news and answering questions. Twitter Spaces is another avenue whereby Celsius staff or ambassadors hold Q&A sessions weekly. Then there is Reddit, where you can ask anything about Celsius and get responses from community members.
The Swag Shop allows you to purchase Celsius branded items to show your dedication and support for the company.
Celsius Network is a ‘no fee’ platform. So what does that mean? Essentially, Celsius does not charge users any fees of any sort. This is one of the top reasons why you should choose Celsius!
For assets, there are no sign-up fees, deposit or holding fees, management fees or CelPay transfer fees between Celsius wallets. In addition, a huge unique selling feature is that Celsius does not charge withdrawal fees. The company covers all network fees when you withdraw from the platform (minimum withdrawals are $10 USD worth of crypto)
For loans, Celsius Network does not charge any loan origination fees, credit check fees, close-out fees (minimum of 6 month interest must be paid though), top-up collateral fees or loan extension fees.
Lastly, Celsius will not charge for in-app swap fees or credit card fees once these services and products are launched.
A less talked about feature unique to the Celsius platform are CelPay transactions. Essentially, users within the Celsius platform can send crypto assets between Celsius accounts and wallets instantly and for free.
All you need to do is find a contact on your phone, and either send them a link or email with a specific amount of crypto. They just need to accept and voila, crypto has been transferred. You can also receive CelPay deposits from other Celsius users via this system.
CelPay is also a great way to ‘onboard’ new users. You can send crypto to ANYONE, even those who aren’t part of the Celsius community or have invested in any crypto in the past.
One of the most highly anticipated weekly updates for the community are Celsius promotions. It’s a way for Celsius to keep the community engaged and to get users to deposit more funds into the platform. There are lots of promotions to choose from including:
- Promo Codes (‘first-time deposit’ and ‘all users’)
- Loan Offers
- Referral Awards
- OTC Discounts
- Friday AMAs (your question being selected)
- 21 Million Satoshi Giveaway (limited time offer)
The Celsius promo codes are designed to give depositors ‘bonuses‘ for adding a specific amount of crypto. This also builds the Celsius assets under management (AUM). Loan promos usually give borrowers discounts on the interest rates and referral awards helps word-of-mouth marketing whereby both the new user and referrer get $50 BTC for free. OTC promos usually give a 5 cent discount on purchasing CEL tokens over-the-counter.
Ease of Use & Accessibility
Celsius Network offers account setup and viewing on both mobile and desktop. The user interfaces (UI) are simple, clean and intuitive. Also, both apps are available with any internet connection (WiFi or ethernet) and can be viewed on all mobile devices and both PC and Mac computers and laptops. Even baby boomers find it easy-to-use!
Currently, the Celsius mobile app has both a light and dark theme. The web app only has a light theme. The platform gives users a visual representation of their overall portfolio, individual wallet balances (in crypto and USD equivalent) as well as detailed deposit and withdrawal transactions. You can easily whitelist your withdrawal addresses, change security settings (like turning HODL Mode on and off) as well as view your personal account details.
Another great feature is that Celsius provides a downloadable CSV file of all your transactions. This is especially handy when dealing with personal tax returns.
COMING SOON! One of the most important reasons why you should consider Celsius Network is because they plan on launching an upcoming opt-in self-insurance product. This will be an industry game-changer as current insurance policies only cover assets stored in hard wallets and cold storage.
Celsius uses Fireblocks as their custodian to store all crypto assets that are not used to generate yield (through lending, borrowing, DeFi etc). Therefore, like all other platforms, only a small fraction of Celsius’ total AUM is insured by Fireblocks insurance.
Currently, there are only a few options to cover ‘counter-party-risk’ or assets that are actively working to generate yield through lending, borrowing, DeFi etc. One such company is Nexus Mutual, but insurance premiums are sky high. Celsius plans to launch an opt-in self-insurance product that will insure against counter-party-risk. This will be unbelievable and is one of the most important reasons why you should choose Celsius Network.