Imagine if you could unbank yourself and work toward reaching your financial freedom in a much faster pace? With Celsius Network, you can transform this imagination into reality.
In this post, I will be going through an in-depth and honest Celsius Network Review from an end-user perspective along sharing my experience.
This article is written for anyone planning to have their money working for them. Why leaving your hard-earned money or cryptocurrency in a non-paying account instead of having them generating you some fantastic passive income?
Would you leave your cash in a chequing account paying almost no interest versus a high interest savings account paying up to 17%? If the answer is NO, then please keep reading!
However, it is not all good news as with any reward there are some risks to be considered.
To learn more about cryptocurrencies, read My Complete Cryptocurrency Purchase, Exchange, Wallet, and ETF Guide.
What Is Celsius Network?
Celsius Network (Celsius Exchange) which is a CeFi (Centralized Finance) has been around since 2017 serving over 1 million users with $21B in assets and $8.2B in loans. Investors can easily join and start earning up to 17% annual yield on their investment. It also offers loan services for as low as 1% interest rate.
Celsius is more like a wallet or a savings account where investors can store their cryptocurrencies including stablecoins to earn interest or use the stored cryptocurrencies as a collateral to borrow funds. Basically, Celsius mission is to empower us, the consumers.
Celsius CEO, Alex Mashinsky, and his wife Krissy created 10 YouTube videos during Covid-19 pandemic comparing Celsius and TraFi (Traditional Finance).
Is Celsius Exchange Safe and Secure?
As with every investment, Cryptocurrency comes with its some risks and it is always a great idea to be familiar with these risks before diving in to avoid surprises. Unfortunately, none of the Cryptocurrency exchanges provide full insurance and Celsius is no exception.
In Celsius, like almost all CeFi exchanges, investors don’t hold the key to their stored crypto. The reason is simply because these exchanges need to access the stored funds for loaning which is their main source of profit. This means Celsius acts as a custodian saving the cryptocurrencies and taking some responsibilities for securing them.
Celsius team includes cyber intelligence experts and cryptography innovators who use complex and proven technologies to secure the assets and data via an integrated and proactive Security Operations Center (SOC).
Some Celsius Security Facts
- Celsius uses MPC (Multiparty Computation) through Fireblocks as its custodian which is SOC 2 Type II certified. Fireblocks insurance policy covers both stored and in-transit digital assets
- Celsius requires collateral of up to 150% from its borrowers to guarantee the loan’s return
- Celsius offers 2FA and Biometric authentication
- Celsius offers HOLD mode which requires a secure code to be disabled. In addition, sending coins requires whitelisting the receiving address securely using the 2FA code and Email approval.
- As of the time of writing, Celsius doesn’t offer any type of insurance to its customers but working toward offering a self-insurance policy. However, it promised to use its balance sheet first in case of an unexpected event.
Considering all the above facts, I consider Celsius as one of the most trusted and safest Cryptocurrency exchanges to use.
Steps to Sign-up & Use Celsius
I have signed up for many Cryptocurrency exchanges and can confirm that Celsius is one of the easiest and most straightforward platforms to use as a cryptocurrency savings account.
Below are the steps to join Celsius Network.
- Get Celsius on Web, Android, or iOS by using my Celsius Referral Code 134004dae3 for $50 in $BTC and sign-up with Facebook, Twitter, Google, or Email. The used sign-up method can’t be changed.
- Note: You need to enter the Referral Code during the sign-up process.
- Enter the Referral Code 134004dae3 while registering to receive the $50 BTC (After a $400 deposit)
- Click Create Account and set a 6-digit PIN
- Click Verify Profile and enter personal information and continue
- Enter address and continue
- Choose the document for your KYC (Know Your Customer) verification
- Allow access to your camera to take picture of the document
- If you live in the US, you will need to submit your SSN to comply with SEC’s regulations
- Once verified, transfer your crypto or purchase crypto using a credit card or a linked bank ACH to earn and borrow
- Get paid every Monday based on the balance as of Friday
Celsius Phone (Android & iOS) App
Celsius App (Including the Web App) is very east to use and navigate through. After singing-in using one of the provided methods (Email, Google, Facebook, or Twitter), you will see a clean dashboard displaying Account Balance, Rewards Earned, and details of owned coins.
All displayed numbers in Celsius Mobile and Web App are $USD. I requested Celsius to offer other currencies which they said its being considered. Click on the Account Balance or Rewards Earned to see the historical activities and more details.
There is a big Celsius Logo button (Blue C) at the bottom right corner of the app which can be used to gain access to Account, Receive, Send, CelPay, Borrow, Profile, Community, and My CEL options.
How to Send & Receive Cryptocurrencies in Celsius
In the Mobile app, click on Celsius Logo at the bottom right corner and choose Receive or Send. For the Web app, it is even simpler as the options are clearly displayed in the main account page.
Clicking receive will display all the available coins before providing the address to copy or share. Use this address to receive cryptocurrencies from other wallets.
Note 1: Celsius doesn’t support Binance Chain or any other third-party transfer. It is important to always transfer your coins using the coin’s native blockchain.
Note 2: XRP Destination Tag and XLM/EOS Memo ID are mandatory for transfers to be credited correctly into your account.
To send cryptocurrencies, click the send button which will offer some safety and security tips. A great feature in Celsius is that you can send coins only to the whitelisted addresses. This means, you must whitelist your addresses prior to transferring them outside Celsius.
In addition, you will get an email with a link to confirm every transfer so keeping your email safe and accessible is fundamental.
Once you have all the above requirements sorted out, choose the crypto and amount to send, click continue, review the address, and click on Confirm address. You can also click Change send address.
After confirming the address, an email with a link to click as a confirmation will be received. Once the link is clicked, the transfer will be processed in moments.
Note: Any new address will take 24 hours to be whitelisted.
How Does Celsius Network Earn Work?
As I pointed out, Celsius is one of the easiest and most user-friendly platforms to utilize for earning. Basically deposit or buy cryptocurrencies and start earning interest automatically for any non-collateralized fund.
The earn interest is calculated every Friday and paid out on the following Monday. Hence, Celsians call Mondays “Celsius Payday“.
There are multiple tiers and different rates for US and International customers. As this changes overtime, I recommend checking out Celsius Earn page for the current rates.
However, understanding the rates might be overwhelming for new users so I am going to simplify Celsius Earning below, but here is an important note to consider “CEL token for US residents as of now”.
In Cryptocurrency there are multiple terms to be familiar with. APY (Annual Percentage Rate) is the one used in Celsius which is the annual yield received through the year. This means an invested $100 earning 8.88% APY, will receive $8.88 through the year including its compounded amount.
- US residents ONLY earn in-kind. Stablecoins earn 8.88% APY while Gold tokens earn 5.50%. Other Cryptocurrencies earn different rates starting from MANA 0.50% to SNX 13.99%. BTC earns 6.20% for 1st BTC then 3.51% and ETH earns 5.35% for the first 100 ETH then 3.52%.
- Non-US (International) users have the option to earn in-kind or in Celsius native token $CEL.
- The rates for in-kind is identical to the rates offered to US residents mentioned above and listed here.
- The rates for earning in $CEL can be higher. The rates shown in Celsius earn page are the highest possible APY which requires below 2 conditions to be satisfied.
- To receive the highest advertised APY, the user needs to hold a min 25% $CEL in their Celsius wallet plus opt-in to earn in $CEL. Unfortunately, this option isn’t available for US residents.
Important Note: I initially got confused and based on the posted table thought I will receive 11.21% on my Stablecoins (USDC, TCAD) holdings if I chose receiving the interests in $CEL. However, turned out I was wrong and I also needed 25% of $CEL tokens to earn the extra 25%.
What Are Celsius Tiers and How Do They Impact Earn & Borrow Rates?
Below chart posted on Celsius site answers this question. What it doesn’t say clearly is that even if you hold $CEL token and fit in one of these tiers, you won’t receive the bonus unless you choose to earn in $CEL.
As mentioned earlier, same rule applies for receiving in $CEL but not holding enough $CEL to be at a higher tier. And this is what I meant above by the 2 conditions to be satisfied requirement.
What is Celsius CelPay in Celsius Network?
CelPay is a great feature to send up to $2,500 worth of cryptocurrencies completely free to your contacts quickly and easily with a link. Click on the Celsius C Logo button, and choose CelPay, then Click Share as a link or Send to contacts.
Choose the coin and amount to send and then confirm via received email. You will be provided a link to share with your contact which they can open to deposit the funds into their wallet which needs to be a Celsius wallet.
If the person opening the link is new to Celsius or don’t have an account, they will need to create an account, and complete the KYC process in order to receive the funds to their wallet.
How about joining Celsius and supporting my blog by sending me a nice surprise?
$CEL, $ETH, $MATIC, $USDC, $TCAD: 0xA2FA6728282d8c9f98a9fb1E4e906A294EbDEF06
How to Borrow Using Celsius Network?
I am not a fan of borrowing in the highly volatile cryptocurrency ecosystem and it is not something I recommend unless you are really familiar with the risks and how to approach borrowing. Remember May 2021 crash? You don’t want o get cut in the middle of a bear market!
To borrow using Celsius app, click on the Celsius Logo button, and then click borrow. There will be two options to choose from Apply for a loan and Calculator.
Calculator is a fantastic feature to understand the requirements and obligations. For example, to borrow 100 USD, I need to deposit 200 USDC as a collateral in the case of a 50% Loan-to-Value percentage or 400 USDC if the LTV is 25%. For a 1-year length, I will pay 8.95% APR (annual interest) or $0.74 per month which can be paid with USD, BTC, ETH, or Stablecoins.
After making the required calculations, click on Apply for a loan and choose Borrow Stablecoins or Borrow Dollars.
If you choose, Borrow Dollars, you will have to link your bank account to receive the funds. In case of Stablecoins, you will receive the fund in your Celsius wallet within 24 hours.
Even though Celsius advertises 1% APR, always read the details. Luckily, Celsius is very clear on how much you are going to pay back so it is easy to understand the contract.
Which coins can be used as Collateral in Celsius? Currently Celsius accepts BTC, ETH, CEL, LINK, MATIC, ADA, DOT, LTC, UNI, EOS, AAVE, XLM, OMG, BCH, ZEC, MANA, DASH, SNX, PAXG, BAT, USDC, ZRX, BSV, COMP, USDT, TUSD, ETC, UMA, KNC, MCDAI, BNB, LUNA, GUSD, PAX, XAUT, BNT, WDGLD, SUSHI, and 1INCH as collateral for borrowing.
What can be borrowed in Celsius Network? USDC, USDT, TUSD, MCDAI, GUSD, PAX, and USD.
What are Celsius Fees?
Short answer, None! Celsius doesn’t charge any deposit or withdrawal fees which saves hundreds on gas fees. There is also no origination or early terminations fees for borrowing.
However, there is a purchasing limit when it comes to directly buying your Crypto through Celsius. I advise against buying directly through Celsius due to the costs and an unfavorable buy-sell spread.
How to Buy Crypto in Celsius App?
As mentioned, consider Celsius as one of the best wallet and savings accounts but not the best when it comes to purchasing cryptocurrencies until Celsius offers its own direct exchange service.
Celsius uses Simplex as a third party for buying cryptocurrencies through its app. To purchase directly from the app home screen, click Buy coins. This offers 2 options: Credit Card & Bank Transfer.
I did the mistake of using the Credit card when started my journey and I highly recommend against using this option unless you don’t have any better alternative.
The purchase is very convenient but there is a price to pay which is a $10 minimum or 2.99% for EU / 3.5% for Global users. On top of this, as this is considered a cash advance transaction, credit card will charge a cash advance fee. If your currency isn’t listed, you might also end up paying a foreign exchange fee too.
If you decided to go with this option, choose your currency and crypto, enter the amount and receive your crypto in minutes. In my experience, Simplex will require ID verification for high amounts.
The other option is choosing Bank Transfer. Enter your required amount and choose the cryptocurrency and country. The app will then provide you with options.
For example, I chose to buy 100 USDC where the app said it costs $124.71 CAD and gave me 3 options:
- Manual Bank Transfer which takes 1-3 business days and costs 0.5% with the highest limit of $72,181 daily. This option is offered by Coinify.
- Credit or Debit Card which takes 30 minutes and cost 3.5% with a daily limit of $1,433 by Mastercard.
- Debit Card which takes up to 20 minutes and costs 3.9% plus 30 cents for a max $801 weekly or $6,013 yearly limit. This option is offered by Wyre and accepts Visa, Mastercard, and Discover cards.
I should add that the cryptocurrency spread price isn’t in favor of the buyer so please avoid buying directly through Celsius if you have an alternative.
Celsius Transparency Is Amazing
I really like how Celsius is transparent with their business. Some of my favorites resources are below:
- Top 500 HODLers of CEL Token shows that Celsius’ CEO, Alex, ranks #1 $CEL holder which gives confidence in the business.
- Proof of Community provides Celsius users with transparency on how rewards are paid.
- Rewards Explorer is one of my favorites where I see my earning ranking weekly among the community.
- Celsius YouTube Channel & Alex’s weekly AMA every Friday.
Where to Find Celsius Active Promo Codes & Rules?
Promo codes can be entered via Celsius App by clicking on the top right corner profile icon and then clicking Promo codes. Here, users can see all the used promo codes and their status. To enter a new promo code, click Enter a promo code.
There are multiple guidelines that can simplify taking advantage of Celsius referrals and promo codes which I am going to list below:
- Always apply the promo code before transferring the funds. For referral codes, enter the referral code 134004dae3 during the sign-up process to get the bonus Bitcoin $BTC.
- Some promo codes like HODL10 are only for first time transfers and new users while others like STABLE50 are open to all Celsius users.
- When entering multiple eligible promo codes, FIFO (First In, First Out) rule applies. Always enter the promo code with the lowest $ requirement. To clarify, if entering STABLE600 and STABLE50 together, you will need to transfer $25,000 USDC/USDT for STABLE600 and then $200 USDC/USDT for STABLE50. You can also transfer $25,200 in one transaction to fulfil both. But, if you transfer $24,999, none of them will get locked unfortunately as the first activated code needs to be fulfilled first. Confusing, right?
- Almost always the funds need to be transferred within 30 days of activating the promo code.
- All promo codes have a validity period. You shouldn’t withdraw any fund during this period, or it will disqualify you from receiving the promo code.
- For smaller amounts, the validity is usually 30 days which means no funds can be withdrawn during these 30 days to receive the reward on the 30th day.
- For larger amounts, like HODL500, the validity is 90 days. This means avoid withdrawing any fund during the 90 days to receive the reward on the 90th day.
- Some promo codes are applicable to all supported cryptocurrencies while others can be applied to specific coins. For instance, HODL2K applies to all eligible coins while STABLE600 only applies to USDC and USDT.
- Almost all promo codes are applicable to all jurisdictions with some exceptions. UNI60 and PAXG60 won’t work for users in New York or Washington or anywhere UNI or PAXG isn’t supported.
- Promo codes status change from Pending upon entering to Locked upon fulfilling the required transfer amount to Claimed when it is paid out. The promo status will turn to Canceled if the conditions are not met. Always review your promo code status to confirm everything worked as expected.
- There are occasionally borrow promo codes with their unique rules.
Celsius Customer Support
Like almost all other cryptocurrency platforms, Celsius is slow when it comes to customer support which is due to the very high demand on cryptocurrency services. I only needed Celsius support once for a non-urgent issue which took Celsius 4 days for an initial acknowledgment.
However, to be fair, everything always worked like magic which is the positive side of the business. On the other hand, I see some reports where accounts get locked for security purposes and users seek help via Celsius Reddit or Twitter accounts.
Ultimate collection of Celsius Customer Support resources can be found here.
In addition, Celsius offers great document centers including API Portal and Knowledge base. I also recommend taking a look at Celsius’ promoted articles and recent activities page which can be found under Celsius Support Centre.
Furthermore, to submit a support request, use Celsius Support. This will generate a ticket which will be followed up by one of Celsius Support Members. If you don’t get a response in a timely manner, reach out to Celsius Reddit or Twitter accounts.
Final Thoughts about Celsius Network Exchange
Celsius is a wonderful choice for cryptocurrency investors who are looking for ways to make money from loaning their cryptocurrencies.
Like everything in life generally and in finance specifically, loaning money through Celsius comes with its own risks which investors are rewarded for by Celsius’ generous interest rates. Although, Celsius is working on implementing a self-insurance policy which Celsians can opt-in via Celsius web or mobile app.
Celsius is a secure and trustworthy platform with friendly community and known leadership. I personally feel comfortable having my funds in Celsius earning interest and compounding weekly (every Monday) with no effort from my end. Simply, deposit cryptocurrencies and start earning.
There are different tiers which can increase the interest by 25% but it requires earning in $CRO. In addition, one of the most attractive aspects of using Celsius is their promo and referral programs. Celsius is amazing because they truly believe in community and the distribution of their earnings among their users versus paying to advertising agencies.
Hence, Celsius prefers to offer generous referrals (Currently $50 in $BTC to anyone activating their Celsius account using referral code 134004dae3, transferring $400 worth of Crypto, and holding for 30 days) and promo codes directly to its customers rather than paying for advertising.
All in all, I highly recommend Celsius to both new and advanced users who would like to earn on their already owned Cryptocurrencies.
As I mentioned at the beginning, do you prefer having your money in a chequing account which pays you almost nothing or prefer to have it in a high interest savings account paying you up to 17% interest annually? If the answer is the latter, why waiting?
Join Celsius now by using my Celsius referral code, 134004dae3, transfer or buy $400 worth of Crypto, HOLD for 30 days, and receive $50 in $BTC plus the interest which is paid every Monday.