Celsius Crypto Network — Intro to Passive Income With Crypto Assets


celsius crypto Network: How to Earn Crypto Passive Income 2022

Celsius Crypto is a decentralized finance (DeFi) network that focuses on cryptocurrency lending, borrowing, and earning. It's also a cryptocurrency software that lets you buy 10 different cryptos that can be exchanged for more than 30 other e-currencies. Celsius is perfect for novices and anybody looking for passive income. It is not for day traders. Residents of the United States are allowed to register on the platform; however, new users in the states of New York and Washington will be unable to acquire assets using the app as of July 2021. Check out our complete Celsius review to determine if it's right for you.

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This is where Celsius. The network comes in. Straightforward lending and borrowing platform that enables anybody to deposit blue-chip crypto assets and stablecoins, lend them out at extremely minimal risk and receive weekly interest payments as a passive income stream.

I've been utilizing Celsius for a year at the time of writing, and having been paid over $13,000 in that time and never missing a payment, I thought it would be useful to share with those who are trying to progress beyond the "JUST HODL" stage of their crypto experience.

Full disclosure: At the time of writing, I had.2% of my portfolio in the $CEL coin.

What is Celsius Crypto Network and how does it work?

The days of storing cryptocurrency in a wallet and waiting for the price to rise before selling to a bigger idiot are over. The crypto economy is booming, bringing with it both classic financial primitives and incredible new experiments that allow consumers to do more with their crypto than merely transmit and receive between parties. The crypto ecosystem, like the internet, is democratizing financial opportunities that were previously exclusively available to the wealthy and ultra-wealthy. One such potential is the capacity to lend assets and collect interest in an environment that relies on code rather than handshakes, contracts, or gangster strongmen.

What is the source of income for Celsius Crypto?

Celsius is a financing marketplace. Borrowers of cryptocurrency from Celsius must pay interest on their loans. Celsius collects around 20% of that interest and offers the remaining 80% to people that deposit with the company. Low overhead, rehypothecation (re-lending cash put up as collateral for loans), and not being greedy bastards are all used to attain their rates.

Is it true that if people default on their loans, I'll lose the money I've loaned?

Borrowers must initially offer 2–4x collateral in order to secure a loan from Celsius. For instance, if someone wanted to borrow $10,000 in cash, they'd have to deposit $20,000-$40,000 in cryptocurrency in Celsius's escrow. Consider it similar to taking out a mortgage to purchase a home. In such a situation, the house serves as collateral, and if you default on your loan, the mortgage lender will sell it. Except in this scenario, instead of a property, the collateral is crypto, which is more volatile but can be sold by Celsius at any time, day or night, to retrieve lenders' cash if necessary. Liquidation is the term for this.

Why would somebody put up money as collateral in order to get a lower interest rate on a loan?

Let's consider a house once more. If you want to buy a $1 million property, you can't take out a $1 million loan to do so. You must first put money down. Let's assume you put down a 20% deposit. You've just put up $1 million in collateral (your house) in return for a $800,000 loan. It's in the lender's best interests to stay afloat and protect its suppliers.

So, how does it benefit the borrowers? Liquidity, in a nutshell. People that invest in appreciating assets (real estate, equities, cryptocurrency, and so on) never want to sell them. Instead, they'd like to borrow against it in order to increase its liquidity without risking losing their asset. People can utilize borrowed money to acquire more assets, which is referred to as leverage. There are several methods to make money with money, which is why individuals borrow against collateral.

Returning to the house example, if your property increases by 6% per year but your mortgage debt only grows at 3% per year, you'll profit from the difference (there are more variables as you know, but go with me). You're taking out a loan in order to make money. A similar idea may be used in other situations.

What about bear markets? How long will Celsius's loan rates last?

Anyone who can tell you something with confidence is either insane or dishonest, so start with "I don't know."

As a result, we can observe from historical rates that Celsius was introduced in a bear market and successfully weathered the 50%+ market crash of 2021, never falling below 7% apr on stablecoins. Indeed, Celsius CEO Alex Maschinsky has said several times that the price of crypto assets has nothing to do with demand (and, as a result, yield) for loans; rather, market volatility supplies that demand. And few things are more well-known than the volatility of cryptocurrency markets.

What is the $CEL token, and how does it work?

Celsius. loyalty Network's coin is the $CEL token. By investing a certain amount of their Celsius portfolio in the $CEL token, users in certain locations may earn greater APRs. At the time of writing, obtaining a CEL token in the United States is quite difficult and expensive (gas fees on Uniswap ETH L1), as there is uncertainty about whether the SEC will classify it as a security, and thus Celsius has taken a cautious approach by not allowing sales of the token in the United States.

That said, I've never held enough $CEL to qualify for loyalty tiers, and the pricing for non-loyalty clients is fairly good without the needless risk of carrying a loyalty coin.

When will I get compensated?

Interest on your portfolio is paid out every Monday, either in-kind (the same currency you put) or in-CEL if that option is available in your location and you select it. You have the option of letting your profits grow, sending them to an external exchange for free (no outbound costs), or using Celsius's in-app swap tool to trade for any other currency you like.

What's the best way to get started?

Along with platforms like Coinbase and Gemini, Celsius Crypto Network shares are at the top of the list of the easiest crypto applications to use. To get started, they provide a simple and straightforward mobile app (IOS and Android) as well as a web app. You'll need to supply the same degree of Know Your Customer information (photo ID, etc.) as you would for any authorized banking institution, and the entire setup procedure is simple. We'll both receive $50 in BTC if you use my referral code (sign-up link or "132440e2b5" after sign-up) and deposit $400 or more within 30 days of signing up.


  - App for mobile and web that is dead easy

  - Celsius works closely with regulators to guarantee that their goods are lawful.

  - To obtain excellent yields, you don't have to own $CEL tokens.

  - New user promo coupons are paid directly to a great currency like BTC.

  - Codes for affiliates

  - Rewards are handed out regularly, with the option of receiving in-kind rewards (no need to be rewarded in high-risk platform tokens)

  - There are no costs for outward transfers (Celsius covers outbound transaction fees)

  - Celsius runs weekly AMAs on YouTube to keep consumers informed about roadmap plans and to answer any questions they may have throughout the week.


  - There is currently no fiat onramp in Celsius. You can't use a bank account to buy crypto or deposit funds (do not use a debit or credit card to buy within their app because the fees are exorbitant). To use Celsius, you must first purchase crypto/stablecoin on an exchange, then transmit funds from that exchange to Celsius, which may incur a charge. Gemini, on the other hand, allows 10 free outbound transfers each month, so many Celsius users acquire their coins there and send them to Celsius for free.

As a US citizen, obtaining CEL tokens is now prohibitively costly (DeFi), yet participation in the platform is not required.

  - There is no in-app switching of currency (currently rolling out)

  - No debit card is accepted (credit card in the future)

  - Support for blockchain is limited (no Polygon or L2s yet)

  - Strict KYC implies that, according to local restrictions, various locations receive differing levels of goods.

  - Customer Service has been known to take weeks to respond to inquiries, despite the fact that I've never had any issues that I needed to contact them about.

  - For transparency, CeFi platforms like Celsius, Coinbase, and Gemini do not use on-chain data.

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