/ / Celsius Network Review 2020: Is Celsius Network Safe & Legit To Use?

Celsius Network Review 2020: Is Celsius Network Safe & Legit To Use?

Cryptosphere is heating up, especially the DeFi side.

Don’t know yet about DeFi- Decentralized Finance; consider reading this guide of ours.

For those of you who are aware let me tell you Celsius network is going to be huge and a massive player in the decentralized financial ecosystem.

I think you have already sensed that given the fact you are reading this article. So let me know beat around the bush more and tell you straight about Celsius what I know and why it is so significant?

In this article, we are going to talk about the Celsius network- a P2P crypto lending platform around the following lines:

  • What Is Celsius Network?
  • Celsius Team
  • How Does Celsius Lending Works?
  • Features Of Celsius
  • Why Choose Celsius For Crypto-Backed Loans?
  • Cel Token Utility
  • How & Where To Buy Cel Token?
  • Celsius vs. Nexo vs. BlockFi vs. Salt

So let’s just right into it:

What Is Celsius Network?

Celsius Network is a crypto lending platform that is acting in your best interest.

It is a peer to peer crypto lending company facilitating borrowing and lending for the people who needs it the most. For borrowers, there are low-interest rates, whereas, for the lender, there is a fair share of the income distribution.

Celsius believes that the world needs banking but doesn’t need a bank. So it has taken it upon itself to be that kind of service that provides banking services to the billions who have no financial playing field, but they do have their mobile phones.

Celsius is leveraging the power of blockchain and blockchain-based tokens to provide a just system that is built ground up by a team of competent people to take it to the masses.

Thus Celsius’s goal is to bring the next 100 million into crypto by providing them services that aren’t available to general masses via traditional financial institutes.


Celsius Team

Celsius team believes in doing good and doing well concepts meaning everyone can do good and do well provided they are given the opportunity.

Team Celsius takes the most fundamental aspect of financial service, i.e., lending and borrowing to democratized and decentralize it so that it acts in the best interest of its users.

Thus the team is comprised of individuals with unique backgrounds such as serial entrepreneurs experienced in disrupting moats, veteran business people, banking experts, business development people, and of course women.

Celsius believes, real disruption of this scale cannot happen without women, so women members form a considerable part of their team.

How Does Celsius Lending Works?

Celsius lending works in a very straightforward manner.

Anyone who requires cash loans can apply and get crypto-backed cash loans at a 4.95% annual rate. This is mainly for dollars and stable coins like USDT, USDC, etc. So get guaranteed out cash or stable coin loan against your BTC, ETH, XRP, BTG, and BCH at the lowest interest rates.

However, there is a minimum loan limit of $3000, meaning you need to collateralize crypto worth of $3000 to get a loan in cash or stablecoins from Celsius.

Further whatever you as a lender deposit on the Celsius platform get loaned out to crypto hedge funds and crypto exchanges at a predetermined rate of interest. 80% of this interest charged is given back to you by Celsius since you have lent it and the remaining percentage Celsius takes.

This interest distribution is done weekly, and you can earn upto 7.5% by lending your ideal sitting cryptocurrencies to Celsius.

But the good thing is, one can earn interest on their any amount of deposit whether you have $1000 or $100 worth of crypto, you can very well earn interest on it using Celsius network which isn’t the case with other crypto lending platforms.

This is how it works !!

Features Of Celsius

I am not a spokesperson of Celsius, but their features are worth bragging about, especially after you understand their vision and commitment to transparency. Some of the features of Celsius that I like are:

  • Earn Cryptocoin

The cryptocurrencies that you have put in your cold storage could be earning upto 10% if you deposit them with the Celsius network. This is an age-old method applied by wall street veterans for making their existing money make more money for them.

Celsius makes it accessible to you, and it doesn’t matter how much crypto you have. Whatever the amount you ready to stake it at Celsius and get-go from the start to earn weekly interest (every Monday) in terms of stablecoins.

  • Borrow Cash [Cash loans]

If you are a borrower and you are a HODLer of cryptocurrencies, this is for you. Get cash or stablecoin loans at the lowest interest rates on your crypto collaterals. This is the best you can get and is also the best thing to do without selling your cryptocurrencies which might appreciate in the future.

  • CelPay

About CelPay I wasn’t able to find much info but as it looks like it is a wallet that allows you to transfer cryptocurrencies from one wallet to another for free.

But as I understand, this feature is only useable for people who are already on the CelPay app and when you transfer crypto from your wallet to another, Celcius just does the background accounting work.

However, not to miss this point that it is actually a full-fledged cryptocurrency wallet and additionally facilitates paying your fellow Celsians instantly without leaving the app.

  • FeeFree Lending Platform

This part is exciting, and I know this is hard to do because I have worked in the traditional mortgage industry for a year. There you have fees upon fees upon fees. There is an origination fee, underwriting fee, closing fee, fee & fee & what not !!

But at Celsius, there are no withdrawal fees, no deposit fees, no transaction fees, no early termination fees, no origination fees, no breathing fees making it the first fee-free crypto lending and borrowing platform which is the need of the hour.

No fees! No fees!!

  • Cel Token Utility

CEL token is purely a utility token designed to give you the best possible financial services in the cryptosphere. There are several utilities and benefits of holding and having CEL tokens, and some of them are:

CEL holders get upto 25% discount on their interest rates if they are borrowing from Celsius and maintaining a certain level of balance of CEL tokens. Also, CEL holders will get seniority in terms of getting dollar loans when the dollars become scarce.

As a lender, if you choose to get your weekly interest in CEL, you will receive up to 20%** more interest on all non-CEL deposits, and as CelPay user whenever you transact using the app, you will receive cashback upto 2% in CEL tokens.


Why Choose Celsius For Crypto-Backed Loans?

There are a plethora of reasons to choose Celsius over other crypto lending platforms and all the features that I have listed above advocates for Celsius in itself. But still here some of the top reasons for which I believe you should use Celsius before trying any other crypto lending site:

  • BitGo is their custodian, so your assets are safe with them as BitGo covers up to $100m for Celsius.
  • There are no hidden fees on Celsius. No origination fees, no early withdrawal or minimum balance fee, etc.
  • No penalty for early withdrawal or your deposit. You will earn interest for an exact number of days you kept your crypto with Celsius. So your money is always within your reach.
  • Interest rates on cash or stablecoin loans backed by your crypto are lowest in the industry.
  • The team has a lofty goal of introducing crypto to 100 million users, which is a real goal and shows their seriousness.
  • CEL token has exclusive utilities, which is missing in other lending platforms.


How & Where To Buy Cel Token?

You can buy CEL token on liquid and IDEX exchange for ETH since it is an ERC20 token.

Celsius vs. Nexo vs. BlockFi vs. Salt

Celsius Network is way ahead in terms of its vision and implementation when compared to its peers like Salt, BlockFi, and Nexo Lending. Celsius already have a mobile app, which is lending and borrowing each day.

Plus their interest rates and fee structure are precisely aligned to benefit the users of the platform. If you still have second thoughts, why don’t you go through this comparative analysis between all the competing parties in the cryptosphere:

Is Celsius Network Legit & Safe

Celsius has BitGo insurance, and all the assets are stored in a multisig wallet with BitGo. The coverage is upto $100 million against cyberattacks, thefts, or inside jobs.

Plus, Celsius has issued loans upto $1.2 billion to date and has 30,000+ active users of the product. Do you still need me to speak for its legitimacy and security !!

Celsius Network Promo Code

There are no promo codes for your lending and borrowing with Celsius, but you can buy and hold their CEL tokens for exclusive benefits which I have explained in the features section of this article.

The last important thing is since Celsius is disrupting the crypto lending and borrowing space for the unbanked people, the regulatory hurdles are meant to arise.

So I suggest you have a look at these notes which shows that Celsius isn’t available everywhere yet and is still fighting the good fight:

That’s all from us in this introductory guide on the Celsius network.


If you are someone who has used this platform already? Then do share your experience with us and if you haven’t checked Celsius Network out then do so as the registrations might close due increase in the popularity of crypto-backed loans !!


  1. Hi. Thanks for the post. It’s really usefull, you did a great job. There’s only one thing that I can’t get my head around and it’s the simple math: how does celsius win money with an interest of up to 11% for the holders and almost 6% to the traders. Still can’t figure that out.

    Would love your response on this topic

    1. The quantity being held and the quantity loaned are factors. Most likely there’s much more being held then loaned.

    2. That 6% to borrow is if it’s paid back in CEL tokens. If it’s paid back with another coin the interest rate is higher.

  2. Hi. Thanks for the post. It’s really usefull, you did a great job. There’s only one thing that I can’t get my head around and it’s the simple math: how does celsius win money with an interest of up to 11% for the holders and almost 6% to the traders. Still can’t figure that out.

    Take a hit ramping user adoption.

    1. Celsius’ business model only works if they get increasing adoption. You need to hold the CEL token to earn interest on all of your cryptocurrencies. The more people that hold their cryptos with Celsius, the more Celsius gets purchased/owned (and held onto, aka less volatility), and the price of Celsius increases exponentially, yielding a massive source of profits.

  3. they loan more money than what is deposited by a factor of 10 That’s how the interest paying and interest earning spread is made.

  4. Celsius utilizes a third party called Simplex to complete transactions through their application. While Celsius themselves do not charge any fees, Simplex does. Simplex not only charges a fee for every cryptocurrency purchased through the application, but they make up the conversion-rates themselves in order to skim an extra 2-5% profits off of the unsuspecting customer. If you’re going to utilize the Celsius application, my recommendation is to purchase your crypto elsewhere and then transfer the funds into your Celsius wallet. You will save a lot of money and hassle.

  5. I have been using Celsius for over a year, and keep getting my interest in CEL token every week, which grew A LOT over that time! The interest of 15%+ APY on stablecoins is so much better than what you can get in any bank, and you can also take a loan, using your crypto as a collateral. Never had any issues, and the app is easy to use. Very highly recommended!

Leave a Reply

Your email address will not be published. Required fields are marked *