What is Celsius Network? 8 Things You Can Do with Celsius

Are you curious about the things you can do with Celsius Network? This article will break down everything you need to know about the Cryptocurrency platform. Cryptocurrency interest accounts and lending services are currently popular in the blockchain community. These organizations, which replace exploitative intermediaries, offer interest-bearing cryptocurrency accounts and low-fee lending that uses cryptocurrency as collateral.

As a result, they can offer greater interest rates on savings accounts and cheaper loan rates than traditional alternatives. Platforms like Celsius have developed in popularity because they let users generate a sizable passive income from their crypto holdings, especially when compared to fiat-based savings account interest rates.

Celsius Network is currently one of the most popular cryptocurrency loan services. We cover all you need to know about what the platform offers in this review so you can make an informed decision about whether it’s right for you.

What is Celsius Network?

The Celsius Network is a fintech service that provides interest-bearing savings accounts, borrowing, and payments in both digital and fiat currencies. Celsius gives 80% of its earnings to network users in the form of prizes, while the remaining 20% is used to fund project expansion. This value proposition questions traditional banking models while emphasizing the Celsius community.

Furthermore, Celsius offers a loyalty scheme in which status is based on the value of CELs in the user’s portfolio. As a member advances through the tiers, they receive bonuses and interest rate reductions on their loans. Read about our thoughts regarding Celsius Network in our Celsius Review. 

What Can You Do With Celsius Network?

Celsius Network was built to help crypto traders and investors buy and exchange their cryptocurrency safely. It has made a trusted name for that; but there’s more you can do with Celsius Network. In this article, we go over 8 things that you can do with Celsius Network.

1. Buy Coins

You can access over 40 different coins through your Celsius wallet, with additional coins being added on a regular basis. Bitcoin, Ethereum, Ripple, and Polygon are some of the more well-known coins. Celsius currency, known as CEL, is a native token of the Celsius Network. Celsius Network’s native token is CEL, and it is essential for gaining access to the platform’s various features.

CEL is an ERC-20 token that is supported by the Ethereum blockchain. Although CEL has several applications, its primary functions are as follows:

It’s worth noting that Celsius gives CEL investors a proportionate share of the company’s income (80%).

2. Earn Interest on Celsius Network

Celsius Network lets users bet their cryptocurrencies for borrowing and earn interest in return. More than 35 tokens are accepted on the platform, including BTC, ETH, LTC, and stablecoins such as USDT, DAI, and GUSD.

The Annual Percentage Yield (APR) of each staked cryptocurrency indicates the coin’s market demand. In November 2020, a couple of these tokens were earning 15% per year, dwarfing bank yields, which were sometimes less than 1%.

Celsius, unlike fiat-denominated banks, does not require a minimum deposit to begin earning interest. There is also no lockup time or penalty for failing to meet a minimum or withdrawing your funds.

The Celsius Network offers a totally different value proposition in the way you manage and maintain your assets, with fewer constraints and greater yields.

3. Send or Receive Cryptocurrencies

You can safely send and receive coins on the Celsius Network. All you have to do is select a Celsius user to whom you want to send cryptocurrency. Choose any of your available currencies and the amount you want to transfer. Finish your payment by adding a note, and you’re done!

It’s quick, simple, and free. The digital currency was designed to operate at rapid speeds. The Celsius app allows you to transfer and receive cryptocurrency at lightning speed.

4. Borrow Cash on Celsius Network

You can borrow USD against crypto collateral on the Celsius Network’s lending platform. Taking out a crypto-collateralized loan has various advantages. Perhaps most importantly, these loans allow you to keep your crypto holdings while gaining access to fiat currency.

Normally, if you sell your cryptocurrency for cash, you will face tax consequences in the form of capital gains and the possibility of missing out on market appreciation. You can prevent this situation by using Celsius.

Celsius Network loans are always over-collateralized to defend against market volatility-related losses. As a result, you can only acquire a loan that is equal to 25%, 33%, or 50% of the collateral.

What’s left of the unused collateral works as a hedge against volatility in cryptocurrency prices. To gain access to Celsius Network loans, simply use the Celsius app to pick the type and amount of collateral you wish to deploy, the loan period, and the desired USD loan amount.

In comparison to the traditional loan process, which can take days or weeks, Celsius loans are completed in minutes or seconds. Because all loans are collateralized, there is no need to run credit checks or employ alternative verification methods.

5. Borrow Crypto on Celsius Network

Celsius Network enables you to obtain a cryptocurrency loan using the funds you have put as collateral. Depending on the total amount locked in your account, the platform provides three alternative interest possibilities.

It is crucial to remember that while staking or paying in CEL tokens, these interest fees are reduced.

6. Send Cryptocurrency to Contacts with Celpay

While Celsius does not provide a credit card, you can transfer assets using CelPay, a cryptocurrency payment tool that allows you to send cryptocurrency to anyone – even people who do not have a wallet. When transmitting cryptocurrency, CelPay sends a shareable link that, when clicked, immediately establishes a CelPay wallet.

Unlike conventional remittance networks, which charge a percentage fee for each transaction, Celsius transfers are free and work with all of the cryptocurrencies mentioned on the app.

7. Stake Your CEL

Though you cannot mine on Celsius, you can stake your CEL on the site and earn interest. The Celsius network employs a one-of-a-kind staking mechanism, which is a four-tiered structure that functions similarly to account levels found at forex and CFD brokers.

There are four tiers available: bronze, silver, gold, and platinum, and the tier in which each user is classified is determined by how much CEL they have staked on the platform.

This is an important distinction because the interest rates that the user will see promoted are those paid to platinum users, which require a stake equivalent to at least 20% of the user’s portfolio with the Celsius network.

For example, if the user owns 10 000 ZAR worth of CEL, or 100 CEL (at the current exchange rate between the two currencies), the user needs to stake 2 000 ZAR, or 20 CEL tokens to be eligible for platinum-tier prizes.

Users must stake CEL tokens in order to get interest payments from the Celsius network. The more users stake, the higher the tier they will qualify for and the higher the interest rate they would receive on their staked tokens.

8. Earn Referral Cash

Referral coupons are designed to attract new clients. If someone uses your Celsius referral code to open an account and deposits $400, you’ll both receive $50 in Bitcoin. You will receive $50 in BTC when a new member makes their first deposit of $400 or more using your referral code at the time of sign-up. Read our Celsius Referral article to learn more on how you can earn free Cash with this referral program.

Celsius Network Fees

The fees levied on a platform are one of the most important considerations when selecting a brokerage account for stocks. This is no different in cryptocurrency, as costs reduce your earnings; it’s just plain math.

The Celsius Network platform does not collect any fees for its services. It does not charge any fees for withdrawals, transfers, transactions, or quitting the service. While accessing their platform is absolutely free, Simplex does charge fees (3.5% or $10 minimum) if you wish to purchase digital assets with a debit or credit card.

If you send digital assets from an external wallet, you may be charged fees by that wallet. Celsius, on the other hand, covers your gas charge; in fact, they have saved customers $7 million in gas fees.

If you choose to pay by bank transfer, the minimum order amount is €50. However, there is no minimum limit if you use a debit or credit card.

Conclusion – Should You Use Celsius Network?

Ultimately, the decision and responsibility for properly using Celsius Network are yours and yours alone. Compared to other crypto lending platforms, Celsius provides some of the industry’s finest interest rates to depositors and borrowers.

If the principal amount is secure, every cryptocurrency holder stands to benefit from high-interest rates. Earning up to 11% on stablecoin deposits might be quite enticing to any investor, especially in uncertain times. Celsius is the market leader in interest-bearing cryptocurrency accounts and lending platforms, a segment that includes other respectable firms such as BlockFi.

Celsius Network is a good place to start if you want to “unbank” yourself and isolate your money from the old financial system.