FinTech has grown so significant that it challenges traditional banking systems in recent times. Like FinTech, the Celsius wallet is built to perform the crypto conventional cash equivalent lending.
All of these are made possible on the Celsius network through blockchain technology. The system’s backbone is the CEL token, an ERC-20 token used within the platform to generate interest, take out loans, send peer-to-peer payments, zero fees, bonus rewards, and much more.
CEL tokens have rocketed nearly 500% over just two months, giving early adopters massive profits. So, what are the other distinctions of the Celsius wallet, and how Celsius works?
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Celsius wallet overview
The Celsius Networks is a blockchain-based lending platform that allows users to borrow digital assets.
It also helps people keep their holdings in the savings account, earning a passive income, which is paid every Monday as a weekly reward. To get the highest lending and interest rate, users need to hold and stake the CEL tokens for as long as possible.
In late June 2021, nearly 50 of MVP Workshop’s engineers and designers joined Celsius to form a Belgrade-based product development center, adding to the research and development team based in Tel Aviv.
Observers were quick to note the continued commitment of Celsius to invest in and expand its technical capacity and also outlined the MVP Workshop team’s trust in Celsius and its mission.
How does Celsius Network operate its interest generation model?
In 2020, the Celsius network had about 106,000 plus members holding crypto on its platform. There are over 500,000 registered users on the Celsius network lending platforms as of 2021.
Celsius has access to the native token held under its network and can lend them to institutional investors from the pool of crypto portfolios at its disposal. There are over 200+ institutional investors available on the Celsius network.
According to Smartcredit, Celsius earns 6%-15% interest (APR) from institutional investors and gives 80% to its users. Celsius keeps the other 20% of the interest as a service fee. This translates to a 1.2% – 3% service fee from the borrowed funds, slightly higher than other crypto lending platforms.
This business model does not mean that the lenders (the platform users) receive a 6% – 15% interest payment per year because, most of the time, the funds are not lent out. This interest is paid only when the funds are lent out. The interest generation model keeps working for everyone as long as there is a lender.
A brief background on the Celsius founder
Alex Mashinsky is on his eighth startup company, Celsius Network, which raised $50 million via an Initial Coin Offering (ICO). He’s also made around 120 VC investments himself, holds 34 patents, raised over a billion dollars for his companies, and has achieved at least over $3 billion in exits.
Alex Mashinsky’s immigrant to riches story is worth the read, but his two-round wins against the phone companies with VOIP and the Subway were just a warm-up considering what he plans to do with Celsius Network.
He is crazy enough to replace the banks and their profits with an automated, decentralized, distributed platform that will act in the depositor’s best interests and let the hard-working masses keep 80% of all the money our banks make.
Learn more about the founder here as well as the minimum deposit.
Accessing crypto assets and Celsius Credit card
The Celsius app is all you need to access and earn interest as a Celsius savings account.
As an old member of the Celsius Network, accessing your crypto asset(s) does not require much effort. Once you log in on the Celsius mobile app, you can access all the cryptocurrencies in your wallet as well as loan approvals.
Starting the registration process is the right step to access your digital currencies for a new member. Registration also allows you to make cryptocurrency exchanges on their platform, buy coins, check the minimum balance, borrow cash, earn interest, and participate in cryptocurrency lending activities.
What are the charges attached to Celsius App usage?
Maybe two or four charges, but none applies to Celsius investors who want to earn money at the best interest rate. Start earning top rates on any amount of crypto and get paid every Monday to keep HODLing. Plus, you can get up to 25% more rewards when you choose to earn in CEL token.
Holders do not have to worry about the origination fees, transaction fees, and withdrawal fees when sending crypto or using the mobile app. Celsius network charges come from the interest rates it charges the institutional lenders. From the interest rates they pay to Celsius, 80% belongs to the members on the Celsius network website, while the other 20% covers all additional necessary fees for Celsius.
Stages on the Celsius Network
There are four tiers on the Celsius token network — bronze, silver, gold, and platinum. Users are arranged in the category of CEL tokens in their crypto holdings. The Celsius network offers interest rates at the equivalence of the deposited cryptocurrency.
Owning a Celsius wallet guarantees users interest payments for holding coins on the Celsius network. Celsius calls it the loyalty system.
The stage means you hold less than 5% of your portfolio on the Celsius crypto platform. Less than 5% holding disqualifies users from earning a passive income and other Celsius offers on the network.
This is for people who hold between 5%-10% coins on the network. They have access to 10% bonus interest paid to users and a 10% Loan Interest Discount on the Celsius network.
Guarantees users who hold between 10%-15% assets on Celsius network 20% bonus interest payments and 10% loan interest discount.
Guarantees users who hold more than 15% of their assets on Celsius network 35% interest payments rate and 30% loan interest discount. They are categorized as people who enjoy the Celsius network’s advertisement rate.
The higher your holding interest, the more cryptocurrency lending ability Celsius network builds as one of the most prominent lending platforms. Because crypto lending is becoming very popular, more money is needed to increase the principal amount for future commitments.
Requirements for a loan on Celsius Network
Individuals who own CollaCollateralborrow cash as little as $ 1000.
It is possible to complete the loan process without any paperwork. You can get loans on Celcius in just a few minutes.
Your approval takes place without a credit check, no origination fee, and our automated process during the process.
You can specify how many loans you have requested through the automatic system, and you can calculate the correlated rate to be ordered from you in the system.
If you wish, you can make transactions on cash or cryptocurrencies.
Is Celsius Network safe?
Because Celsius offers zero-fee remission services to its customers does not mean the network is a scam. They have been around since 2017, and it doesn’t look as if they are slowing down soon. The number of users jumped from about 106,000 last year to more than 500,000 speaks volumes.
Coinbureau has this to say about the Celsius network, “this is a company that has over 200,000 users and more than $2.2 billion under management. It’s a pretty safe assumption to say that they can be trusted. With the lowest minimum deposit. But, if you don’t want to assume, you can also look at the more than $80 million in interest payments already made and the $8.2 billion in loans disbursed. And of course, there are always loads of positive reviews of the platform all over the web.”
In the same vein, Market Good states, “One of the strengths of the Celsius Network are the people that are involved in the project.
Celsius is comprised of individuals with unique backgrounds such as serial entrepreneurs, veteran businessmen, banking experts, business developers, and successful blockchain pioneers.”The Celsius team is a mixture of experience and expertise in all the departments.
While users have the private keys to their portfolio on the Celsius network, Celsius has the public key to ensure everyone is satisfied and kept secure.
Therefore, it is the duty of everyone involved in the Celsius community to support the Celsius network legit and rewarding for a long time.
Withdrawing money on Celsius is not problematic as some opinions expressed in the past suggested. There are no transaction fees or withdrawal fees, or other hidden charges. Every customer enjoys excellent interest rates as long as they comply with the terms and conditions for holding assets on their network.
Understanding interest rates
The interest rates placed on lending on the Celsius market vary in terms of the coin value and tenure for repayment.
Why should you choose Celsius crypto lending platform over other crypto lending platforms?
For a chance to earn rewarding interest rates, the Celsius network does not charge any hidden fee on every user’s transaction on the platform.
This is left totally to an investor’s discretion. If you choose to hold the assets in your wallet for a long time, Celsius rewards you for your loyalty.
Credit History Check
Lenders and investors on the Celsius network enjoy privacy in this regard. As long as collaCollateralh ties the property to the borrower, they grant a loan immediately on request.
Celsius does not have a withdrawal limit for its users, but recent development means restrictions on $50,000 and above for security purposes. One can carry out such transactions once in 24 hours. A more prominent figure means the delivery time will be between 24-48 hours.
How do I contact Celsius?
Celsius network offers customer support to members on their platform. Customer support can provide solutions to frequently asked questions, overriding password errors for users, providing detailed information to customers to help them understand how the platform works, and processing payments on behalf of new users.
Celcius Network’scustomer support comprises a team of highly qualified team members who provide solutions to users on any platform-related concerns.
For accurate delivery, you can message Celsius network’s customer support directly.
How many cryptocurrencies does Celsius support?
With over 40 supported cryptocurrencies on the Celsius network, the possibility of trading the most popular cryptocurrencies on their platform becomes accessible to users.
How to withdraw funds from Celsius Network
From the home screen in your Celsius app, select “Withdraw”
Select the blue Celsius logo in the lower right-hand corner of your Celsius app. You will be able to see the withdrawal option.
From the coin dropdown list, select the coin you would like to withdraw from your wallet.
This list will only display coins that you hold in your Celsius account wallet.
Enter the amount you’d like to withdraw
You can enter this number in the coin amount (ex: 1 BTC) or the USD amount. Most withdrawals are processed automatically, and users can withdraw any amount at any time;
However, the Celsius network’s security policies may require additional withdrawal approval.
Enter (or confirm) your withdrawal address
If this is your first withdrawal or you are withdrawing a specific coin from your wallet, you will need to enter your withdrawal address.
Confirm your withdrawal details
Select “Confirm withdrawal” from your app screen and follow the on-screen prompts. You will need to verify your PIN/2FA and enable email verification.
Verify your withdrawal request
Please open the confirmation email you received from Celsius and click on the “confirm transaction” button within the email to confirm your withdrawal. Once the network verifies the transaction, your withdrawn funds will be visible in your receiving wallet/exchange.
Celsius is an ecosystem of over 1 million users that earn up to 17% yield on their crypto. Members get paid new coins every week as they borrow cash at 1%. Buy coins, make yield, borrow, and transfer with no fees on the web and using mobile apps. The Celsius wallet is the interface that enables the community to access the different benefits available to members.
Although Alex is a great guy, there are uncontrollable factors involved. We think it’s probably best to hold more centralized crypto assets with Celsius, for example, Tether, USDC, or the Cel Token itself. Since these are more centralized, if they are notified/become aware of a hack quickly enough, they would most likely revert/freeze the funds, etc.
When choosing a wallet, pay attention to which management has a strong desire to keep security issues at bay. Just research their backgrounds, check out who’s advising them (cofounder of Blockchain), the significant partnerships they’ve secured, etc. Those things make us believe that Celsius is serious.
Ether or Bitcoin has to be covered by insurance or from Cel Assets. There is always a risk when someone holds your coins and shouldn’t be ignored. Use the wallet that keeps your crypto secured.