Celsius Network Loans Review
Best For
- Investors
- Exchanges
- Professional Traders
- Hedge Funds
- Blockchain Focused Businesses
Celsius is a centralized crypto-to-fiat loan platform with a global customer base. Users can choose from three different loan options and secure loans without selling their crypto assets. Celsius launched in 2018 and currently maintains offices in the US, UK, and Israel.
Celsius Network Crypto Loans - 2020 Comprehensive Review
Celsius Network Overview
| APR Rates | 3.46% - 6.26% |
|---|---|
| Borrow Assets | USD, USDC, DAI, TUSD, GUSD, PAX, USDT |
| Rate Variability | Low Variable |
| Loan Amounts | $1,500 - $1,000,000 |
| Receive Funds | Fiat : 1-3 Business Days, Stablecoin : Instant |
| Repayment Type | Interest Only |
| Available Loans | Fiat, Stablecoins |
| Accepted Collaterals | BTC, ETH, BCH, XRP, LTC, DASH |
| Collateral LTV | 50% - 50% |
| Margin Call LTV | 70% |
| Collateral Insurance |  |
| KYC Check | Yes |
| Platform Fees | No Fees |
| Network Token | Celsius |
| Token Benefits | 5% of the total balance must be kept in CEL Tokens in the deposit wallet to get the published APR rates on your Loan. |
| Platform Type | Centralized Lender |
| Credit Check | No |
| Supported Regions | All Countries |
| Excluded Regions | Sanctioned Countries |
APR Rates
| Borrow Asset | APR Rate |
|---|---|
| US DollarsUSD | 3.46% - 6.26% |
| USD CoinUSDC | 3.46% - 6.26% |
| DAIDAI | 3.46% - 6.26% |
| TrueUSDTUSD | 3.46% - 6.26% |
| Gemini DollarGUSD | 3.46% - 6.26% |
| Paxos StandardPAX | 3.46% - 6.26% |
| TetherUSDT | 3.46% - 6.26% |
Collaterals Accepted
| Collateral Asset | Collateral LTV |
|---|---|
| BitcoinBTC | 25% - 50% |
| EthereumETH | 25% - 50% |
| Bitcoin CashBCH | 25% - 50% |
| XRPXRP | 25% - 50% |
| LitecoinLTC | 25% - 50% |
| DashDASH | 25% - 50% |
Celsius Network Crypto Loans Alternatives
Pros and Cons
Pros
- Fees - Celsius does not charge default (margin call) fees, early termination of loan (prepayment) fees, or origination fees.
- Competitive Interest Rates - Selecting the lowest LTV ratio loan option enables users to receive a loan with an APR rate of 4.95%, which is competitive among reputable loan platforms.
- No Credit Checks - Celsius does not require or conduct credit checks on users looking to obtain a loan through their platform. Additionally, any account activity through Celsius will not affect a users credit rating.
- Tax Benefits - As with other crypto-to-fiat loan platforms, Celsius loans are not considered taxable events because users do not have to sell their crypto assets in order to secure the loan.
Cons
- ICO - Celsius Network elected to run an ICO to raise funds for operations in 2018. Many feel this is a controversial approach, as crypto loan platforms such as BlockFi have proven that a native token is not needed to offer services.
- Non-Insured Deposits - Assets deposited with Celsius, although held separately by a trusted custodian BitGo, are not insured. In the event of serious company losses or damages, users will have to rely on the Celsius Network balance sheets to recoup assets.
- High Risk Assets Accepted - Celsius Network allows users to put up several high risk assets as collateral in order to receive a loan. Some of these assets may rapidly lose market value and create a liquidation risk that is beyond the standard of most crypto asset backed loans.
- Privacy - Users looking to secure loans from Celsius Network are required to KYC and submit personal identification information.
Frequently Asked Questions
Is Celsius Network safe?
Does Celsius Network have a mobile app?
What are the fees on the Celsius Network lending platform?
Is Celsius Network insured?
Does Celsius Network accept US customers?
Summary
Celsius has been one of the more successful loan platforms in the blockchain finance space, benefiting from strong leadership experience and $50M USD raised from it’s token sale in 2018.
It’s largest customers are exchanges and hedge funds looking to create markets, seek arbitrage opportunities, and earn interest on crypto asset balance sheets. Industry leading custodian BitGo has recently confirmed that it has maintained over $1 billion in crypto asset deposits for Celsius over the past year.
Users should be aware of concerns that the Celsius platform native token (CEL) could be defined by financial regulators as a security. There have also been calls for greater transparency from Celsius surrounding their revenue model - mainly how and to whom the company is loaning customer deposit balances to.
Overall, Celsius has thus far provided an above average loan service to both institutional and retail investors. Blockfer recommends that retail investors interested in Celsius be aware of the aforementioned risks and use their products responsibly.
| Learn More | Best Features |
|---|---|
|
Legal & Regulation - Facts & Figures
| Legal Name | Celsius Network Limited |
|---|---|
| Incorporated Country | United Kingdom |
| Headquarters | New York, NY United States |
| Year Founded | 2017 |
| CEO | Alex Mashinsky |
| Total Employees | 11-50 |
| Regulators | Not Regulated |
| Links | Website, Crunchbase, Whitepaper, Source code, Twitter, Blog, LinkedIn |
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About The Author
Delton has been writing about blockchain finance & technology, decentralized applications, and crypto assets since 2017. His work has been published and featured by several independent news publications and blockchain projects.
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Methodology: How We Review And Compare
Our mission is to provide the most informative, unbiased, and useful reviews and comparisons possible for products and services in the blockchain finance industry. Assessments are powered by experts with years of relevant experience.
The crypto lending platforms found in this category have been tested extensively by our team as part of the review process. Factors we analyze in our crypto loan reviews and comparisons include: APY rates, available assets, loan amounts, loan options, LTV ratios, platform fees, reputation, ease of use, loan terms and fees, and customer support.
The Blockfer Promise: We do everything in our power to keep content up to date and in the best interests of our audience. Blockfer does not shy away from poor ratings. Products or services that do not meet our reputability standards will be rated as 'Not Trusted'. Compensation from partners does not, and will never, effect our review process.