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Earning interest in your crypto holdings is definitely a great idea. There are a bunch of platforms available out there that pay you interest just to keep and hold your crypto assets on their platform. One such platform is the Celsius Network.
The platform is known for offering the highest interest rate compared to its competitors. Plus, if you plan to borrow cash against your crypto, Celsius Network has handsome offers for you.
So the question is, how do Celsius Network loans work? Well, this is what I will be explaining about in this article. So here we go:
What is Celsius Network?
Celsius Network is a blockchain based lending platform. It was launched back in 2017, and it issued its native coin CEL in March 2018.
Using the platform, you can borrow crypto or deposit your crypto assets on the platform to be lent out. And in return, you will earn interest or crypto dividends.
You can borrow a loan in cash or CEL. Plus, you can deposit over 40 cryptocurrencies on the platform, which you can use as collateral.
It allows you to earn up to 17% APY when you choose to hold your crypto on the platform. It pays interest every week. Plus, you can earn 25% more rewards if you choose to earn in CEL. For borrowing, the interest rates are as low as 1% APR. More details about lending and borrowing can be found in The Money Monger’s review on Celsius Network.
As mentioned earlier, Celsius Network allows you to earn up to 17.78% APY. All you have to do is keep your digital assets on the Celsius Network.
The platform allows you to hold more than 50 cryptocurrencies. This includes 10+ Stablecoins, 3 Gold tokens, and some of the most popular cryptocurrencies like BTC, LTC, ADA, BNB, and more.
The best part, there is no minimum balance on which you can earn interest on your crypto holdings. Plus, it pays interest every week on Mondays.
However, the interest, or – what Celsius calls it – rewards, depend on the type of cryptocurrencies you are holding and if you live in the USA or not.
For instance, if you don’t live in the USA, then you can earn rewards under the Celsius’ loyalty tiers which pay reward bonuses based on the percentage of your crypto portfolio.
However, CEL rewards are not available in the USA. As a result, USA citizens won’t be able to enjoy the best rates that Celsius offers.
You can use the onsite calculator to understand how much you could be earning with Celsius Network.
You can take a loan from Celsius Network. It offers loans in cash or CEL. However, if you do need money, you have to borrow cash.
It allows you to use more than 40 coins as collateral. Celsius Network instantly approves your loan application, and there are no credit checks or fees.
Also, when you are borrowing crypto, you can choose how much crypto you want to put up. This is known as the loan to value or LTV ratio.
Celsius Network has three LTV options which are 25%, 33%, and 50%. Also, interest rates start at 1%. But if you are a California resident, then the interest rate is 0% as of now if you choose 25% LTV.
However, to understand better how much you have to pay back, you can use the loan calculator available on the Celsius network website.
How to Borrow Funds with Celsius?
Taking a crypto loan on Celsius Network is fast and easy, as there is no document verification, credit checks, or anything. Instead, it offers you a loan depending on the crypto assets you own. As a result, if you urgently need money and don’t want to sell your crypto assets, Celsius Network works as a good alternative.
To take a loan from the platform, follow the below steps:
First of all, download and sign up on the Celsius Network mobile app.
After that, go to the borrow section.
Choose between Dollars or Stablecoins. If you choose stablecoins, then you have to select a specific stablecoin like USDT that you want to borrow.
Next, you have to choose collateral. You can use collateral like Bitcoin, USDT, Ethereum, and many more. Also, you will need to deposit your collateral funds to the Celsius Network wallet.
After that, you have to select your interest rates like 1% APR, 3.95% APR or 7.95% APR.
Then select the term of your loan between 6 months to 36 months.
Finally, confirm your loan, and you are good to go.
So that was all for Celsius Network. I hope now you know how Celsius Network loans work and how you can earn interest on your holdings or borrow crypto.
Also, I would like to mention that taking crypto loans can be risky. So make sure to do proper research to avoid any issues.