Celsius is primarily a decentralized finance (DeFi) platform focusing on crypto lending, borrowing, and earning. It’s also a cryptocurrency app that enables the purchase of 10 specific cryptos that can be converted to more than 30 other e-currencies. Not for day traders, Celsius is ideal for beginners and anyone interested in passive income. U.S. residents are permitted to register on the platform; however, as of July 2021, new users in New York and Washington state cannot purchase assets through the app. See our full Celsius review to see if it meets your needs.
How Celsius works
The Celsius wallet app is straightforward and fairly easy to use. The website claims it operates in more than 150 countries, but it’s worth checking whether or not your country provides full support of the Celsius features. For instance, in the U.S., new users living in the states of Washington and New York have been unable to buy any assets through the app since July 2021. No reason for this change was given. Also, the Celsius Network’s flagship loyalty-reward token, called CEL, is not available for sale to U.S. residents.
U.S. residents are required to submit a Social Security number and a photo identity to comply with Celsius’ KYC (know your customer) requirements. After your identity is validated, you’ll need to fund your account. This can be done with an automated clearing house (ACH) transfer from your bank using regular money. Or you can directly purchase any number of the 10 supported cryptocurrencies for direct deposit from two of Celsius’ partner trading exchanges.
Since Celsius does not have its own trading exchange, it has a very basic dashboard to monitor withdrawals, deposits, and earnings. That’s it. You can start earning interest immediately, with interest payments deposited directly to your account every Monday. The app has a suite of other financial solutions such as crypto-backed loans, no fee withdrawals, and direct payments to family and friends.
If you’re looking for a hassle-free loan, Celsius has it. Simply pick your loan amount, the desired interest rate, and payment plan — and that’s it. No credit approval, closing fees, or background check. The loan is backed by your crypto assets on deposit. A great feature is that your coins stay in your wallet and continue earning, even while you’re paying back the loan. You don’t have to liquidate any asset, and you still keep accruing — truly a rare win-win banking scenario.
Top perks
Celsius offers robust DeFi services
Celsius is an interest-bearing and crypto-lending DeFi platform. It’s accessible via desktop or iOS and Android mobile app. DeFi offers person-to-person financial services — such as lending, borrowing, and investing for interest — on a public decentralized blockchain. This approach eliminates the need for financial gatekeepers such as loan officers and banking personnel.
Celsius members can quickly get approved for loans at discounted rates. Others who want to put their assets to work can pledge not to withdraw them — similar to certificates of deposit (CDs) — and earn interest on their staked deposit. Or they use their cryptocurrency as collateral and get “flash loans” instantly. The breadth of DeFi services the Celsius offers is exciting to see.
Perks for using its native token CEL
Celsius offers CEL tokens, Celsius’ own loyalty reward token. It also functions as the main method of exchange across the Celsius network. However, U.S. residents can’t buy these tokens yet, which is a major drawback.
Earnings are calculated and deposited every week based on three factors: the interest you earned, your loyalty tier, and the specific crypto assets stored in your account. Celsius Network has a four-tier loyalty program that determines your interest rates and other benefits. The tiers are defined by what percentage of your portfolio is held in CEL tokens.
Also, all Celsius users are eligible to get a 2% usage reward if they combine CEL tokens with the CelPay feature in the app. It’s worth noting that members can send any of the supported cryptos using CelPay — you just won’t get a bonus benefit.
CelPay is an easy-to-use funds transfer system
The CelPay feature is unique among lending platforms and crypto exchanges. It allows users to pay friends and family in crypto as easily and quickly as more well-known systems such as PayPal. A cool feature is that CelPay does not require the recipient to have a Celsius wallet. It’s a convenient and nifty little payment highlight.
What could be improved
Highly centralized control
The attraction of cryptocurrencies — and DeFi, in particular — is the decentralized nature of the various projects. While Celsius touts itself as a “democratized, defi platform” its Terms of Use are surprisingly authoritarian. Consider this passage (emphasis mine):
“We have the right to suspend, freeze or close your Celsius Account at any time for any reason without advance notice, including by blocking your access to the Account or the Services.”
Or another section, which states that Celsius is not liable for any “errors” or mistakes it makes that result in a financial loss to you. Further, you would be liable for all their legal expenses and fees, which could be deducted from any funds in your Celsius account.
The terms go on to state, “You are liable for all expenses and fees we incur for such conflicts or disputes, including internal costs and attorneys’ fees, and we may charge or deduct them directly from your Celsius Account balance.”
While we can appreciate the enterprise’s need to legally protect itself, this is tough talk from an organization seemingly committed to helping everyday people.
Celsius lacks its own exchange, resulting in limited crypto selection
Usually crypto exchanges have dynamic trading platforms with dozens of crypto trading pairs to choose from. Some even offer margin trading and robust technical analysis graphs, but no passive income opportunities or lending/borrowing services.
Celsius is the exact opposite. It has exceptional lending, borrowing, and interest-earning activities, but it doesn’t have its own crypto exchange. The third-party exchanges it has partnered with offer a total of 10 cryptocurrencies for purchase and deposit. This is the most bare-bones crypto exchange feature this reviewer has come across.
U.S. residents are not eligible for CEL token benefits
Celsius has its own loyalty reward token, CEL. Users that convert deposits to CEL and pledge not to use it — adding to the liquidity of the Celsius Network — get a lot of perks. Those benefits include deep discounts on lending rates, higher-interest returns on pledged CEL, and a 2% loyalty reward when combining CEL tokens with CelPay. Those are valuable perks — not yet available to U.S. residents. There was no target date published on the web site or mobile app regarding when CEL tokens might be available for purchase in the U.S.
Pros
- Robust DeFi services
- Perks for using its native CEL token
- CelPay is an easy-to-use funds transfer system
- Has $30 million in insurance for assets stored in the Celsius wallet app
- Residents from 150 countries can trade via desktop, iOS, or Android apps
- No fees for minimum balances, loan origination, or transfers
Cons
- Highly centralized control
- Only a handful of coins and tokens available for purchase
- Does not have its own crypto exchange — very limited trading via third-party vendors
- U.S. residents don’t have access to the CEL token or its benefits
Fees overview for Celsius
One of the things that makes Celsius great for beginners is that it offers many “no-fee” services, which are listed here:
| ACTION | CELSIUS FEE |
|---|---|
| Minimum Deposit | $0 |
| Withdrawal Fee | $0 |
| Loan Origination Fee | $0 |
| Early Termination Fee | $0 |
| Deposit Fee | $0 |
Data source: Celsius.com.
Celsius can do this because it makes its profits through its lending and borrowing services. Within the Celsius app, you’re able to buy coins using:
- ACH transfer (via Wyre)
- Bank transfer
- Debit card purchase
- Credit card purchase
- SEPA transfer
Since Celsius does not have its own crypto trading exchange, it has partnered with two other services — Wyre and Coinify, respectively. These services enable in-app purchases of a limited number of cryptocurrencies that can be purchased and deposited into the Celsius wallet app. Fees and deposit restrictions are broken down below.
| FEATURE | SIMPLEX | WYRE | COINIFY |
|---|---|---|---|
| Fees | 3.5% of the transaction or a $10 U.S. minimum amount | Automated Clearing House transfer (U.S. only) 0.1% of transaction | 0.5% bank transfer 2% credit card purchase (EU only) 3.5% non-EU credit card purchase |
| Minimum amounts | NA | $1 U.S. | $50 EUR bank transfer $50 EUR credit card purchase |
| Maximum amounts | Daily limit: $20,000, resets 24 hours after the last purchase Monthly limit: $50,000, resets 31 days after the last purchase | Weekly limit: $5,000 U.S. Monthly limit: $20,000 U.S. | $50,000 EUR per day bank transfer $1,000 EUR per day credit card purchase |
Is your cryptocurrency safe with Celsius?
The Celsius team takes security very seriously. It has six security certifications including ISO/IEC, 365/24/7 network monitoring, the latest cryptographic innovations, cyber intelligence, and incident response experts. It also uses unique technologies, such as multi-party computation to provide top-tier security and asset protection.
It also stresses the need for its Celsius users to take steps to ensure the security and integrity of the network and their own holdings. These steps include:
- Activate two-factor-authentication on the Celsius mobile app
- Whitelist your crypto withdrawal addresses within the app
- Activate HODL mode — a safety feature unique to Celsius that blocks all withdrawals of any kind while activated
- Store your HODL code offline
- Protect your personal email and accounts from SIM swap attacks. Use non SMS-based two-factor-authentication (like Google Authenticator app)
- Use a unique email that you don’t use on other services
- Do not use public or unsecured Wi-Fi networks
- Do not use public or shared computers or devices
- Keep your device secured with a strong, unique password
- Use an encrypted password/key manager
- Log out and close the session when you’re done using the apps
