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Celsius Network is a financial technology (fintech) platform that offers interest-bearing savings accounts, borrowing, and payments in both digital and fiat currencies. Today we are reviewing the Celsius Network to see if it is a viable option for those looking for an alternative to traditional banking.

The Celsius Network is based on an economic model that challenges conventional banking concepts while prioritizing the Celsius community. For example, instead of charging interest on loans, the Celsius Network pays its members for borrowing funds. This creates a community where everyone has an incentive to help each other grow financially.

As of July 2022, Celsius has announced there are halting operations and petitoning to file for Chapter 11 bankruptcy. 

  • Celsius is a mobile-only retail platform – Users can only use the Celsius Network app, not the desktop version.
  • Users can deposit cryptocurrencies and earn money from them. Each staked cryptocurrency’s Annual Percentage Yield (APR) reflects the market demand for that coin. Users can also earn bonus interest on their accounts if they choose to receive rewards using the CEL token.
  • Users can borrow stablecoins and dollars in exchange for crypto assets. Users can also get a bonus discount on their accounts if they choose to pay back their loans with the CEL token.
  • A market-leading provider of CeFi loans: when coins are deposited, the Celsius Network holds them as collateral and lends them to another party. CeFi Financial Institutions, large investors, institutional traders, hedge funds, or exchanges looking for reliable inroads into cryptocurrency are all candidates in this case.

What is the Celsius network? 

The Celsius Network is a financial technology (fintech) platform that provides interest-bearing savings accounts, borrowing, and payments in both digital and fiat currencies. It is based on an economic model that challenges traditional banking models while putting the Celsius community first.

The Celsius Network is one of the most well-known cryptocurrency exchanges, with high yields on traditional deposits and low-interest rates on crypto-backed loans. It was founded in 2017 by Alex Mashinsky, Nuke Goldstein, and S. Daniel Leon. Celsius is a blockchain-based lending firm that first distributed coins (CEL) in March 2018. The company’s headquarters are in London, U.K.

Mashinsky is a successful entrepreneur and engineer who helped build the foundations of VOIP (Voice Over Internet Protocol) and founded two of New York City’s top ten venture-backed exits since 2000.

In 2018, Celsius held an Initial Coin Offering (ICO), raising approximately $50 million by selling 325 million CELs (about half of their total supply).

The Celsius network offers to earn, buy, borrow, and swap features, and it is one of the best for individuals who enjoy trading different currencies. 

How does the Celsius network work? 

The Celsius Network is made up of Celsius-hosted accounts and several crypto exchanges with the goal of limiting crypto-asset transfers outside of the system. 

Celsius Network members can earn interest in their crypto holdings by using the Celsius Wallet. The platform also allows users to borrow up to 30x leverage to short the market, giving them more trading power than if they only had their crypto assets.

In the end, there are four major players in the Celsius system:

  • Depositors: those who earn interest on their account balances are referred to as lenders.
  • Borrowers: these are margin traders who want to take short or long leveraged positions.
  • Celsius Platform: Allows trades to be made, manages risk, and calculates trading fees.
  • Markets for foreign exchange: Executes trades and obtains or disposes of liquidity.

Is the Celsius network a defi or a cefi? 

Celsius Network is a centralized wallet that allows users to store and send cryptocurrencies such as Ethereum, Bitcoin, and over 30 other crypto tokens. The Celsius Network, however, employs both Cefi and defi features. 

Celsius is a pioneer in decentralized finance, employing the same smart contracts and open ledgers to allow users to get the best return on their crypto assets. At the same time, Celsius is aggregating custodial wallets, which allows users to borrow and earn a high yield. 

Celsius Network supports 45 different assets, many of which are not compatible with ERC20 or ETH2 infrastructure but can still earn a yield on our platform. Users can lend their deposits to other Celsius users for up to 9% in Ethereum and 6% in Bitcoin.

They can also borrow money in dollar-pegged stablecoins against their crypto holdings in their wallets, with annual interest rates starting at 1%.

Celsius native token

CEL is the native token of the Celsius Network, which allows users to take out loans, make payments, and gain additional loyalty benefits.

The Celsius native token, CEL, is primarily used as a reward mechanism for users who access the Celsius Network, as well as a collateral currency for loans.

Instead of opting for other cryptocurrencies, CEL holders gain additional benefits by using the cryptocurrency to make cheaper loan payments or receive higher yields.

The CEL token is an Ethereum-based token that can be exchanged for other Ethereum-based tokens like ETH and DAI. 

Furthermore, through its payment service, CelPay, CEL can be transferred to other users within the Celsius network without incurring transaction fees.

How does CelPay work 

Although Celsius does not provide a credit card, you can transfer assets using CelPay, a cryptocurrency payment app that allows you to send cryptocurrency to anyone — even those who do not have a wallet. 

CelPay generates a shareable link when sending crypto, which when clicked by the recipient creates a CelPay wallet. 

Celsius transfers are free and compatible with all cryptocurrencies listed on the app, unlike traditional remittance networks that charge a percentage fee on every transaction.

 Is the Celsius network trustworthy? 

Cryptocurrency-backed loans are a great way to borrow money without having to sell your assets (which hopefully will grow in value). However, there are some risks attached, and so caution should be taken. 

The Celsius Network is an approved source by the SEC and requires all members to go through KYC (Know Your Customer) and AML (anti-money laundering) laws. However, Celsius Network deposits are not FDIC or SIPC insured. In the United States, the Celsius Network has applied for an exemption with the SEC. Celsius Network is unaware of any rules or constraints that may apply to it.

How users earn an interest in the Celsius network

Using Celsius Earn Account 

Transfer your cryptocurrency to your Celsius wallet to start earning interest right away. The amount of money offered varies widely and is determined by four factors:

  • Your native country
  • If you want your rewards in CEL, you can do so (this is optional)
  • If you have a wallet full of CEL tokens (this is also optional)
  • The type of cryptocurrency that was deposited

The type of crypto asset you deposit has a significant impact on the rate. As an accredited Platinum member, for example, you can earn 6.55 percent for up to 1 BTC and up to 18.63 percent on SNX by staking in the company’s token, CEL.

Additional Bonus rewards 

Aside from earning CEL, accredited investors and users who have CEL in their accounts before April 15, 2022, are eligible for additional platform rewards.

Benefits are based on the percentage of CEL in your portfolio in this rewards program:

  • None at all (0-5 percent ). Get a 5% interest rate reduction on your loan.
  • Bronze is the most common metal (5-10 percent ). Get 10% more bonus rewards and a 5% interest rate reduction on your loan.
  • Sliver (10-15 percent ). Get 15% more bonus rewards and a 10% interest rate reduction on your loan.
  • The precious metal gold (15-20 percent ). Get 20% more bonus rewards and a 15% interest rate reduction on your loan.
  • Platinum is a precious metal (20 percent or more). Get a 30 percent bonus and a 25% interest rate reduction on your loan.

Celsius calculates returns every week, calculating yields every Friday and paying them out on Monday, whether you own CEL or not. 

While higher yields are possible, this is not a recommendation for CEL. Native tokens are highly volatile, with price drops occurring frequently. Holding a large percentage of CEL puts your portfolio at risk of rapid declines in value.

Minimum loan term 

The minimum loan term is six months. If you repay your loan before the end of the six-month term, you will be charged interest for the entire six-month period.

Pros and cons of celsius network 


  • There are no transaction fees.
  • Funds loans in USD and stablecoins. It supports over 40 types of cryptocurrencies and stablecoins.
  • Stablecoin funding is available immediately.


  • Earn is not available to some new US customers.
  • Your assets are in the hands of a custodial platform.
  • The assets of depositors may be used in high-risk investments.
  • KYC via mobile app is required for the web platform.
  • There is no insurance policy to cover hacking incidents.
  • CEL rewards are locked in for a year.

How to Apply for a Loan on Celsius 

  • To verify your account, download the Celsius mobile app and complete KYC.
  • Go to the “Borrow” section of your app’s menu, select “Apply for a loan,” and then “Borrow stablecoins.”
  • From the options available in your location, enter the amount you want to borrow and the stablecoin you want your loan issued in (USDT, USDC, GUSD, TUSD, PAX, or MCDAI).
  • Choose the coin that will serve as collateral. To complete your loan request, choose from coins already in your Celsius account or transfer more coins.
  • Select an interest rate (APR). The cost depends on the amount of collateral you want to provide (LTV). Celsius policy, your jurisdiction, and applicable laws and regulations may affect rates.
  • Select your loan term (the length of time you want to borrow). When your loan matures, you can extend it for another 6–36 months at no cost.
  • When you’re ready to submit your application, review the loan terms, double-check your information, and click “Request loan.”

How to deposit funds into the Celsius network 

Here’s what you need to do to deposit your cryptocurrency into Celsius:

  1. Go to the Celsius Menu
  2.  Click on the Transfer button. 
  3. Select the coin or cryptocurrency you wish to transfer. You can choose from over 38 cryptocurrencies to deposit into Celsius and earn interest on them.
  4. Copy the wallet address on the Celsius app. The wallet address is generated once you click on the particular cryptocurrency you wish to deposit. The wallet address is a long string of alphanumeric characters and can be difficult to remember, so the best practice would be to copy and paste the wallet address directly. 
  5. Use the send function from the crypto exchange that you use. You’ll need to send the cryptocurrency from the particular crypto exchange or wallet you use to Celsius. 
  6. Receive the crypto in Celsius. After clicking send, the cryptocurrencies sent should take a while before reflecting on Celsius. Immediately funds are received in Celsius, the amount is reflected on the celsius app, and a confirmation email is sent. 

It is essential to take note of transaction fees while performing transactions from exchanges to Celsius. The transaction fees are, however, not stable as they change depending on the volume of transactions on the network, among other factors. 

Networks supported by Celsius 

  • ERC-20 

Tokens or currencies that run on the Ethereum network can be deposited on the Celsius network. That includes Ethereum and all other ERC-20 tokens. 

  • BSC 

It is important to note that Celsius does not support the Binance Chain (BEP-20) network. Therefore, users are advised not to send cryptocurrencies over to Celsius via the BEP-20 network. 

Celsius, however, supports the Binance Smart Chain (BSC), allowing users to deposit BNB through this network.

The Binance Chain and Binance Smart Chain were created to allow users to send assets across the Binance ecosystem more quickly. 

Celsius, on the other hand, is only a component of the BSC network, not the BEP-20!

When sending cryptocurrency to Celsius, always make sure to double-check the network on which you are sending your cryptocurrency! It will be lost forever if you send the cryptocurrency to Celsius via BEP-20.

  • TRON

Celsius only accepts ERC20-based cryptocurrencies and, as such, it does not accept TRC20-based cryptocurrencies.

Sending most stablecoins like USDT and USDC over the TRC20 network results in much lower transaction fees. However, Celsius does not currently support this network, so you’ll have to use the ERC20 network instead.

It’s possible that you’ll have to pay a lot of money in withdrawal fees as a result of this!

Risks of Crypto Lending 

Because the crypto world is a risky place, crypto lending comes with its own set of risks that can catch you off guard.

  • The legal aspect of the loan – There is no uniform legal framework for cryptocurrency and related businesses. There are almost no laws regulating it, and in some countries, financial transactions involving crypto, including lending, are prohibited. As a result, pay close attention to the laws and follow them.
  • Different lending platforms charge different fees and interest rates, so you might end up accidentally lending crypto to a platform with extremely high daily rates. You may lose your entire trading profit (or even more) to pay off this platform.

Celsius alternatives

There have been recent stories of Celisus network having financial difficulties and may be facing bankruptcy. If you are looking for a way to manage, trade, and hold your assets with a trusted provider that offers an interest bearing savings account, we suggest BlockFi.

Closing Thoughts 

You can expect cryptocurrency lending platforms to continue to grow in popularity as more people adopt crypto, lose confidence and trust in banks, and start trading more frequently.

Celsius has grown to become one of the largest cryptocurrency lending and earning platforms in the world. Celsius is a reward-earning and crypto lending platform that is accessible via web and mobile app. Celsius is a modern platform where membership provides access to curated financial services that are not available through traditional financial institutions.  

CryptoWhat was created in 2015 and has become one of the most trusted and well-respected sources of information on all things crypto. The blog's authors are dedicated to providing clear, concise, and jargon-free explanations of this complex technology, so that everyone can understand it.
By: Patrick Moore
By: Patrick Moore