Earning interest in your crypto holdings is definitely a great idea. There are a bunch of platforms available that pay you interest just to hold and hold your crypto assets on their platform. One such platform is the Celsius Network.
The platform is known to offer the highest interest rate compared to its competitors. Also, if you are planning to borrow money against your crypto, Celsius Network has some great deals for you.
So the question is, how do Celsius network loans work? Well, that’s what I’m going to explain in this article. So let’s go :
What is the Celsius Network?
Celsius Network is a blockchain-based lending platform. It was launched in 2017 and issued its native coin CEL in March 2018.
By using the platform, you can borrow cryptos or deposit your crypto assets on the platform to lend them. And in return, you will earn interest or crypto dividends.
You can borrow cash or CEL loan. Additionally, 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 keep your crypto on the platform. He pays interest every week. Plus, you can earn 25% more rewards if you choose to earn in CEL. For loans, interest rates are as low as 1% APR. More details on 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 need to do is keep your digital assets on the Celsius network.
The platform allows you to hold more than 50 cryptocurrencies. This includes over 10 Stablecoins, 3 Gold tokens and some of the most popular cryptocurrencies such as BTC, LTC, ADA, BNB, etc.
The best part, there is no minimum balance on which you can earn interest on your crypto holdings. Plus, he pays interest every week on Mondays.
However, the interest, or – as Celsius calls it – the rewards, depends on the type of cryptocurrencies you hold and whether you live in the United States or not.
For example, if you don’t live in the US, you can earn rewards under Celsius Loyalty Tiers which pay out reward bonuses based on the percentage of your crypto wallet.
However, CEL rewards are not available in the United States. As a result, US citizens will not be able to take advantage of the best fares offered by Celsius.
You can use the on-site calculator to figure out how much you could earn with Celsius Network.
You can borrow from Celsius Network. It offers cash or CEL loans. However, if you need money, you have to borrow money.
It allows you to use more than 40 parts in guarantee. Celsius Network instantly approves your loan application, and there are no credit checks or fees.
Additionally, when you borrow crypto, you can choose how much crypto you want to put up. This is called the loan to value ratio or LTV ratio.
Celsius Network offers three LTV options which are 25%, 33% and 50%. Plus, interest rates start at 1%. But if you are a California resident, the interest rate is 0% from now on if you choose 25% LTV.
However, to better understand how much you need to repay, you can use the loan calculator available on the Celsius Network site.
How do I borrow funds with Celsius?
Taking out a crypto loan on Celsius Network is quick and easy, as there are no document checks, credit checks or anything. Instead, it offers you a loan based on the crypto assets you own. Therefore, if you are in dire need of money and do not want to sell your crypto assets, Celsius Network is a good alternative.
To take out a loan on the platform, follow the steps below:
- First, download and register on the Celsius Network mobile app.
- After that, go to borrow section.
- Choose between Dollars or Stablecoins. If you choose stablecoins, you must select a specific stablecoin like USDT that you want to borrow.
- Then you have to choose the guarantee. You can use collateral such as Bitcoin, USDT, Ethereum and many more. Additionally, you will need to deposit your collateral funds into the Celsius Network wallet.
- After that, you need to select your interest rates as 1% APR, 3.95% APR or 7.95% APR.
- Then select the duration of your loan between 6 months and 36 months.
- Finally, confirm your loan and you’re good to go.
So that was it for Celsius Network. I hope you now know how Celsius Network loans work and how you can earn interest on your holdings or borrow crypto.
Additionally, I would like to mention that taking crypto loans can be risky. So make sure you do proper research to avoid any issues.