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What Is Celsius? How To Buy, Expectations And Predictions. Everything You Need To Know About CEL

Celsius Network is one of the most popular cryptocurrency lending platforms. It was founded in June 2018 and provides banking and financial services to its users. In this article we explain what you need to know about Celsius (CEL) before you invest in it.

What is Celsius (CEL)?

Celsius Network is also known as CEL. This is the Celsius currency. Celsius Network is a platform founded in 2017 by Alex Mashinsky. This is a Ukrainian entrepreneur, who also founded and invented VOIP. His mission is to use blockchain technology to enable his users to gain financial freedom by moving away from traditional systems.

The concept of the Celsius cryptocurrency allows users to become borrowers and quickly access funds by pledging their crypto CEL as collateral. They pay minimal interest for this. For lenders, on the other hand, the platform offers profits on the interest rates of the securities they have deposited into their Celsius Network wallet. As such, Celsius Network can be compared to other platforms such as Nexo and Blockfi.

Why was Celsius founded?

The network’s founders want to leverage blockchain technology to bring financial freedom and economic opportunity to the majority of the world’s population. They believe that large banks and monetary institutions have dominated the credit market for too long. Therefore, it is time for them to replace the current financial systems with a new model that serves the interests of all.

Alex Mashinsky, the creator of the Celsius crypto, explained that the Celsius model is designed to provide opportunities to users before taking advantage of them, the exact opposite of how today’s banks work.

The concept is simple. 80% of community sales are returned to customers so they can afford the high returns they deserve. The remaining 20% ​​will provide resources to expand the community and thus develop the services to build a new sustainable financial and banking system. The platform offers customers services that are not available in traditional settings. The goal is therefore to act as a financial disruptor on a global scale by offering services that connect people through cryptocurrencies.

Why should you lend crypto coins?

With Celsius it is possible to lend cryptocurrencies and earn interest at sometimes interesting rates. Currently, it is possible to use about 20 cryptocurrencies, including major cryptocurrencies such as Bitcoin , Ethereum , Litecoin , Stellar and Dash. The Celsius team has already announced that ten more currencies will be added soon (including Algo , Tron , Binance Coin, and Saga).

When you deposit your currency on the platform, you will receive interest every Monday, calculated on the basis of the annual interest. You can choose to receive interest in the currency you borrow or with the token of the platform: the Celsius (CEL).

However, it may be clear to you that you have several advantages when you choose CEL. Suppose you lend Litecoin, you will receive about 3% interest per year. However, if you choose to receive your interest in CEL, you will receive 4% in return per year. So it becomes a lot more attractive to have yourself paid out with CEL. In this way, the platform wants to ensure that more people use CEL, so that the project will also grow in size.

However, it can have even more advantages to use CEL. It can give you access to the loyalty programs. This allows you to increase the level of your interest. So you can earn more money . No minimum deposit is required when purchasing CEL through Celsius’s platform. You can withdraw all or part of your money for free at any time.

How does Celsius work?

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Many people will wonder what actually is the use and advantage of borrowing or lending the CEL coin. The next question many ask is how you could do that. To better answer this question, it is important to first understand how Celsius works. The position of the borrower and the lender must be taken into account.

Borrower

On the one hand, the borrower is considered a cryptocurrency investor. But most of his funds will be stuck in the network. Such a transaction can be beneficial to the person in question as he can make a profit if the value of CEL increases. Usually, the investor can put some of their crypto assets up for sale to get funds or liquidity. But with Celsius, instead of selling his crypto, the borrower can pledge it and get a loan that he can repay at his own pace.

However, as with any loan, he must pay interest on the borrowed money. However, this often does not turn out to be a bad thing. Because if the value of the cryptocurrency has increased in the meantime, there is a good chance that no loss will be made at all in the end.

lender

On the other hand, as far as the lender is concerned, he will be able to lend out the crypto coins he has invested in the network instead of keeping them in his wallet.

This method allows him to lend the assets to other users and earn interest on the loan. In this way, he avoids the risks associated with cryptocurrency trading, as he does not engage in crypto trading . At the same time, he still makes a nice profit on his investment, without having to do anything for it.

The goal of Celsius is to give everyone the chance to be a borrower or a lender if they have the CEL coins. In fact, it is a platform that is suitable for anyone who wants to bet or lend their funds.

Is the Celsius network secure?

Trusting a company with your money is a difficult decision. That also applies to Celsius. So, what could Celsius do to make the platform as secure as possible for its users?

It is important to first mention that there has never been a data breach or hack in the Celsius network. So this already indicates that the platform seems very safe at first glance.

However, without listing the benefits of the network, Celsius Network has a strong team, which can be viewed on their official website. The network also has partnerships with Bitcoin, Chainlink and more. In addition, the ratings on Celsius Network are excellent, and no complaints have been filed or registered against them so far.

As far as money safety is concerned, users’ money is highly protected by two protection packages. These are Fireblocks and PrimeTrust.

In order to strengthen the defensive measures, Celsius Network has implemented a “HODL mode”. In simpler terms, this mode is a security feature set to temporarily disable outgoing transactions from the Celsius account.

This feature is ideal for those who do not plan to withdraw or send money from their Celsius Wallet for an extended period of time. So, if HODL mode is enabled, the following functions will only be available when it is disabled:

  • Withdraw money
  • Send money via CelPay
  • Change of “whitelisted” payment addresses

You can deactivate the HODL mode, but you will have to wait 24 hours for the above functions to be restored.

The benefits of Celsius

There are several advantages that can be envisaged for Celsius, which work out well for the users of the platform, but also for those who invest in CEL.

  • No minimum deposit required . This means that the user can invest by depositing the amount he/she wishes. Nevertheless, the profit made will be proportional to the initial investment.
  • No Celsius network charges . This is a rare feature of Celsius. There are no network withdrawal fees, which means that an investor does not have to pay any fees when withdrawing funds.
  • Freedom over how to receive or pay interest . Through the Celsius app, customers can receive the invested funds either in kind or in CEL coin. And by choosing the second option, the user earns up to 30% additional interest.
  • No Fund Lock-In . This is surely one of the favorite features of the users of the platform. Normally, credit institutions encourage their customers to lock up their cryptocurrency for a certain amount of time if they want to earn (strike) interest. With Celsius, the mechanism is different. A person will be in full control of their funds at any time and thus can withdraw their crypto whenever they feel like it.
  • No credit check . Since the borrower’s Celsius cryptos are collateral, his or her banking history is not required to take out the loan.

Disadvantages of Celsius

On the other hand, although the Celsius network has many attractive advantages, it is of course not without its drawbacks. It is up to you whether the disadvantages outweigh the advantages. Here are the major drawbacks of Celsius:

  • The centralization of the CEL wallet . The problem with centralized networks like Celsius is that the user does not have a private key for their wallet. As a result, whether borrowing or lending, Celsius services require the user to deposit funds into their Celsius wallet. While users can access it whenever they want through their mobile app, there is no guarantee that the funds are safe from hackers.
  • Margin Calling and Liquidation . When someone borrows on the Celsius network, they have to give a cryptocurrency as collateral. But given the instability of the crypto’s value, Celsius is making a margin call. That is, if the value of the collateral falls below a certain threshold, the platform will ask the user to add more to meet the loan coverage. And if the price falls further, it can liquidate some of the assets to cover the margin call.

What cryptocurrencies are available on the platform?

The Celsius app supports and is interested in various cryptocurrencies. They include:

  • Celsius (CELL)
  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple ( XRP )
  • Litecoin (LTC)
  • Stellar (XLM)
  • Bitcoin Cash (BCH)
  • Many different stable coins

The cryptocurrency of Celsius: CEL

The Celsius cryptocurrency is called CEL. This coin has several functions within the network. That’s why Celsius users need this coin anyway. However, you can also use CEL to earn money with this. We are happy to tell you more about CEL.

How can I store Celsius?

The CEL coin can be stored in the Celsius wallet provided directly by the project itself. You can also store your crypto coins in other wallets, such as the Lumi Wallet or the Ledger Nano S or X.

If you have a lot of CEL in your possession, it is wise to store it in a hardware wallet . A cold wallet is much safer than a wallet that is continuously connected to the internet, such as a MetaMask wallet or the wallet of a crypto exchange .

Before you buy a wallet, it is wise to check whether CEL is supported. Then you will not be faced with surprises.

Celsius(CEL) Chart

 

How do I buy CELL?

Celsius Crypto or CEL is the native token embedded in the Celsius app, giving members exclusive access to the best cryptocurrency services. But how do you get these CEL coins?

Users can get them by earning them as interest, or by purchasing them directly through the network. It is currently not possible to buy CEL on most central crypto exchanges such as Binance or Bitvavo. However, it is possible to buy CEL on a decentralized exchange such as Uniswap .

However, it is quite difficult to use a DEX, compared to, for example, Binance. You have to go through more steps, and the chance that things will go wrong is also many times greater. Therefore, always pay close attention when you decide to buy CEL via a decentralized crypto exchange.

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