Cryptocurrencies are a global economic reference thanks to the growth of the value of Bitcoin over the last few years. In this process, new virtual currencies began to rise and fall in value, creating a highly competitive market where you can choose from various currencies, invest in them, and pay or make transactions.
To carry out this investment, you need an application or a platform where you can execute the activities. Celsius Network is one of the portals that is taking over the market in the United States. It is an application where thousands of crypto investments enter daily to increase their economic possibilities, but is Celsius FDIC insured?
What is Celsius Network?
Celsius Network is a cryptocurrency lending application that works on a blockchain basis. It has been in operation since 2017 and is currently a market leader. The main utility of this space is Bitcoin lending.
People looking for loans and agreeing on an amount with lenders come here. It is meant to support both parties and form an ecosystem where users who lend Bitcoin can generate large economic income.
One of the most important qualities of the company is that it has lower rates than the stock market. It also has good interest rates for crypto loans. In addition, Celsius also cooperates with borrowers to receive profits after investing the borrowed Bitcoin assets in technology projects or for decentralized financing.
What are the advantages and disadvantages of Celsius?
At first glance, Celsius Network seems to be a useful application that generates great benefits for the parties. Indeed, it simplifies lending with attractive interest rates and immediate payments.
To get a more realistic idea of the mobile tool, we made a list of the advantages and disadvantages of using it:
The main advantages of the app are:
- It helps users receive great rewards in Bitcoin.
- It has low-interest rates for loans that are ideal for both borrowers and lenders.
- It is a mobile app that works on Android and iOS operating systems.
- The platform facilitates the use of cryptocurrencies and their loans.
- Sends and receives funds without fees.
- It is ideal for investors and traders looking for passive cash income in their cryptos.
- Available in more than 100 countries and employs more than forty cryptos and stablecoins.
- It is designed for beginners in cryptocurrency lending and is easy to use and intuitive.
- You receive rewards of up to 15% APY paid per week.
- Loyalty program.
Among the most common disadvantages we found in the application are the following:
- Minimal educational resources.
- Cryptocurrency limit.
- The platform takes control of your assets.
- Can use deposited assets in investments with a high risk of loss.
- No insurance policy to cover piracy.
- CEL rewards are locked for one year.
How to use Celsius Network?
Celsius Network is a mobile application that aims to borrow or grant loans in cryptocurrencies. It facilitates the process and is very easy to use. This platform is available for Android and iOS operating systems that you can download directly from your app store. Just follow these steps to use it:
- Download the application from your official app store.
- Register your details and create an account.
- Verify your identity.
- Request or receive a loan.
How long does it take to repay a loan?
With Celsius Network loans, you pay monthly fees during the term of your loan and principal as a lump sum at the end of the process. You can receive payments in CEL, BTH, ETH, USDC, GUSD, TUSD, USDT, and MCDAI. All interest transactions with CEL are discounted by 25%.
You can repay the loan any time, but minimum interest is due for six months if you repay the loan before the agreed six months. This process involves a prepayment penalty, but the company does not mention this in its policies.
If you receive a loan and the value of your crypto falls, and the LTV rises, Celsius will activate an emergency mechanism not to devalue your money. This mechanism is a “margin call” where you will be asked to add more cryptocurrencies as collateral. If you do not comply with the request, the application will automatically sell your cryptocurrencies to return you the estimated amount, either 50, 22, or 25% LTV.
Is Celsius safe to store crypto?
Celsius offers data security thanks to receiving ISO/ICE 27001 security certification. But, it is not a secure platform to keep your cryptocurrencies safe. The application does not insure your cryptocurrencies by the FDIC or the SIPC. By not having these entities, you are making highly risky transactions; you hand over and entrust your money to Celsius as a space to keep your funds safe.
Celsius is a platform that lends money to its clients to receive returns and make a profit; this makes deposits vulnerable to piracy or theft. It is also estimated that the platform will not be able to pay you back if it goes bankrupt or suffers a severe hacking impact.
Before deciding on these issues, we recommend you talk to a financial advisor or cryptocurrency specialist to determine how to protect your assets.
Customer Service Contact
Suppose you have doubts about the subject, want to invest, or want advice about your investments in Celsius Network. In that case, we recommend you communicate directly with the company through its communication channels. The platform has established four direct means:
- Call 866-463-5669 from 10:00 am to 11:00 pm from Monday to Saturday.
- Write through the social network Twitter to the account @CelsiusNetwork.
- Send a direct message from their official website.
- Start a conversation with the virtual assistant on their website.