The Celsius Network is a UK-based cryptocurrency and decentralised finance (DeFi) company that offers worldwide investing, borrowing and payment services. The platform boasts competitive crypto loan fees, a dedicated wallet, a wide range of tokens and staking interest rates surpassing 17% per year. This 2022 review covers the full range of financial services offered by Celsius, in addition to account types, supported tokens, security and regulation and any platform fees levied by the company.
After the Celsius token’s successful initial coin offering (ICO) in early 2018, the Celsius Network platform was launched to provide traditional financial services, such as saving, borrowing and carrying out fund transfers within the DeFi space.
Initially based in London and led by Ukraine-born founder Alex Mashinsky, the firm has expanded exponentially since its first days and now holds over $20 billion in client assets. However, the Celsius management team decided to move to the US and expand into several European countries in early 2021, citing increased local regulatory uncertainty.
In line with their key aim of industry disruption, the Celsius team are soon launching a credit card to help DeFi enthusiasts earn a weekly crypto reward for fiat purchases.
The Celsius Network supports a total of 52 crypto tokens. This number comprises 12 stablecoins, including USDC, USDT and BUSD, three gold tracker tokens and 37 cryptocurrencies like BTC, XLM, XRP, ADA and MATIC.
Investors can stake all of these coins, including Bitcoin and Tether, to earn interest and many can be used as loan collateral. However, several of these tokens are unavailable to buy on the Celsius platform and must be transferred in from other exchanges.
The Celsius coin (CEL) is integral to many of the platform’s functions. This token can be purchased on major crypto exchanges, earned as staking interest or purchased through Celsius Buy. Transactions exceeding $5,000 may qualify for preferential rates when purchased from the company directly through its separate OTC dealing desk.
CEL Use Cases
The platform conducts a CEL token burn every Friday, equivalent to 10% of clients’ weekly interest earnings. This measure prevents price inflation and ensures investors are adequately compensated for staking.
The network’s account level system is based on the percentage value allocation of a traders’ portfolio to CEL tokens, as follows:
Basic – 0% to 4.99%
Bronze – 5% to 10%
Silver – 10.01% to 15%
Gold – 15.01% to 25%
Platinum – Over 25% or 75,000 CEL tokens
By qualifying for a higher account level, clients can earn bonus interest on their staking when opting to be paid in CEL or a reduction in loan rates when paying interest in the Celsius coin:
Yield farming is one of the most popular methods to earn money in the crypto sphere for long-term investors. Holders earn rewards for staking their tokens in either fixed or flexible contracts, with coins either loaned out to other clients or used to provide liquidity to a crypto network. Rewards are often sizeable and the Celsius Earn yield farming program offers up to 17% APY on crypto staking.
The yield rates offered by the firm depend on the specific crypto token and traders earn a bonus for opting to receive interest in the platform’s native CEL token. Higher tiers of the loyalty program allow investors to receive 30% higher CEL rewards – more on this later.
Stablecoin rates are often higher than most cryptos due to reduced price volatility. Celsius clients receive staking rewards of up to 9.32% APY with the highest-earning stablecoins, such as USDC. The three gold-tracking tokens available on the platform earn up to 7.21% APY, while standalone crypto tokens, such as Bitcoin, Ethereum and MATIC, earn between 0.5% and 18.63% APY.
Celsius provides a yield calculator that allows clients to preview the interest they could receive from staking. Investors can use the interest calculator to compare earnings in all supported cryptos and choose from time frames that range from one year up to 20 years.
Celsius Borrow provides clients with crypto-backed loans of stablecoin or USD funds, with over 40 tokens supported for collateral use. Interest rates start at 1% APR for 1-25% LTV lending but rise to 6.95% APR for 26-33% LTV and 8.95% APR for 34% LTV to the maximum value of 50%.
Paying interest on your loan in CEL entitles you to a discount of up to 25% on loan fees, which significantly impacts high LTV lending rates. In addition, Celsius promises to match like-for-like loan quotes from competitors.
When putting up non-stablecoin tokens as collateral, it is essential to understand that the volatile nature of the crypto market can lead to frequent fluctuations in LTV rates and, in extreme circumstances, a margin call. Celsius requires clients to maintain the LTV value agreed upon at the contract’s start and allows 24 hours for adding additional collateral.
A Celsius loan can release resources from crypto trading earnings without the funds being subject to capital gains tax, in some jurisdictions. Crypto-backed loans are often used for this purpose in the UK.
To fund a Celsius wallet with crypto to earn interest, collateralise a loan or pay other users, clients can purchase crypto directly from the provider using Celsius Buy. This facility allows the direct purchase of cryptos like Bitcoin and Ethereum using fiat currency.
While clients do not pay fees on these purchases, a 3.5% fee from liquidity provider Simplex is included in the offered price. This rate is reduced to 2.99% for EEA and UK crypto traders. The facility only supports a small selection of crypto tokens, with popular coins like XRP, XLM, MATIC and ADA not offered.
The Celsius Swap service, which allows traders to exchange crypto for crypto directly, is still in a closed beta program. Disappointingly, this means that new clients will have to wait for its full release to exchange any crypto tokens on the Celsius platform. However, upon release, the exchange will aim to provide users with the best prices in the market for zero fees.
Many clients have expressed dismay online at the fact that, in 2022, a successful crypto platform does not yet have a functional exchange and they have no way of selling tokens natively.
Celsius users can transfer money to other account holders for free and instantly using the Celsius Pay (CelPay) service. Clients can make transfers in any supported token, regardless of geographic location, eliminating the forex and bank fees associated with cross-border fiat payments.
A credit card has been in the works from Celsius for a while and interested traders can join the waitlist to receive frequent email updates on the project’s progress. With the credit card, users will be able to earn interest on the crypto they use as collateral towards the card. Moreover, the firm promises no annual fees, late payment charges, forex fees or ATM charges when using the card.
Celsius Credit Card
Celsius clients can choose between its web-based computer interface or dedicated mobile application, available on both iOS and Android. Both support every feature and facility that the firm offers, including staking, borrowing, trading and account management. Both platforms can be used together and they each have sleek interfaces, useful calculators, customer support access and crypto news posts.
Celsius Web Platform
The Celsius Network philosophy is to put its users first, meaning that the platform charges no fees on most of its services. There are no holding fees, withdrawal fees, gas fees or origination fees.
With the buying feature, the quoted price of a crypto purchase is the final price you will pay. However, the quoted value includes a 3.5% fee from the liquidity provider, Simplex, which is higher than many pay on a genuine exchange. Therefore, traders should consider transferring crypto from another exchange or wallet.
There is better news for those using the Pay, Earn or Borrow facilities and those interested in the upcoming Celsius credit card. These services levy no charges on users, with the credit card service not subject to annual, late payment, forex or ATM fees.
There are two supported deposit methods for funding your crypto wallet. You can either purchase coins through the platform with the Buy facility or directly transfer tokens from another exchange or wallet.
When buying crypto through the platform, customers can choose between card payment and bank transfer as payment methods. The broker will aim to provide you with the best rates available at the time and clearly display the 3.5% (or 2.99% for UK and EEA traders) transaction fee. Deposits made using Buy can take up to 24 hours to fully process.
Crypto deposits into the native wallet can be simplified by using the provided QR code to quickly and accurately identify the wallet address. While the platform does not charge deposit fees, transfers may be liable to gas fees or network costs.
Ensure that the Network supports the token you wish to transfer when depositing crypto; Binance Smart Chain contracts are not supported and transactions must be made on the token’s native platform.
Clients can withdraw up to $600,000 worth of crypto in 24 hours, with no withdrawal or gas fees charged for outgoing transactions. However, you cannot withdraw cash as the platform currently has no facility to sell crypto for fiat currency. Clients that wish to sell their tokens must transfer their funds to another exchange.
Pros Of Celsius Network
Competitive Loan Rates
Great For Long-Term Holding
40+ Staking Assets
Free And Instant Peer-To-Peer Transactions
No Credit Checks On Lending
Cons Of Celsius Network
Not Open To New UK Customers
Unregulated And Uninsured
No Exchange Or Selling Facility
High Buying Fees
Limited Direct Purchasing Options
Heavy Reliance On CEL Token Ownership
Security & Regulation
The safety of investors’ data and funds is a top priority for Celsius, which employs a dedicated security team to offer class-leading protection measures.
Comprehensive know-your-customer (KYC) verification measures are enforced to ensure that the platform and its users are protected from fraud. Moreover, two-factor authentication (2FA) adds another layer of security when accessing your account.
Clients can also lock their accounts with HODL mode, restricting withdrawals or the unstaking of tokens for maximum security. There is also a 24-hour withdrawal limitation period upon registering a new withdrawal address to help prevent fraud.
Upon starting the company’s withdrawal from the UK, Celsius withdrew its temporary registration application with the FCA and is not regulated. While this is common in the crypto space, traders may be wary of unregulated brokers, especially as the firm does not have a traditional insurance policy for client assets.
Celsius provides support to its clients in the form of a support site. This comes complete with hundreds of FAQ answers and help articles, a US phone helpline, an email support form and a live chatbot that can answer limited technical queries.
The Celsius official YouTube channel also features frequent videos, such as Q&A sessions with customers, bite-sized help videos and educational content on the platform and larger crypto ecosystem.
The Celsius platform operates 24/7, in line with the perpetual trading of the crypto markets. Clients worldwide can manage their accounts and purchase tokens at any time.
Celsius provides a range of user-friendly services with competitive interest rates for long-term crypto holders and those seeking crypto-backed loans. Many will appreciate the ability for over 40 assets to be used as loan collateral and free peer-to-peer transfers on the Network. Unfortunately, the platform is let down by its lack of a dedicated exchange and the inability to sell coins, even over-the-counter.
Is Celsius Available In The UK?
Celsius does accept UK clients and offers the entirety of its services to British residents.
Does Celsius Support MATIC Staking?
Celsius Networks supports the stalking of over 50 crypto tokens, including MATIC. The interest rewards for MATIC staking are up to 9.52%.
Is Celsius Network Safe?
Celsius is a legitimate platform and employs many noteworthy security measures to help keep clients safe. However, the company is not regulated and funds on the Network are not insured.
What Is Celsius HODL Mode?
HODL mode is a security feature that allows wallet assets to be locked for extended periods.
Is There A Celsius Credit Card?
Celsius plans to release a credit card and interested parties can sign up to a watchlist to stay informed about significant development milestones.
Celsius vs Other Brokers
If you want to compare Celsius with other brokers, use the detailed comparisons below.