What is the Celsius Network (CEL), Celsius Crypto, Celsius?
The Beginner’s Guide
Celsius Network is a regulated, SEC compliant, lending platform that enables users to receive interest on deposited cryptocurrencies or take out crypto collateralized loans.
Celsius hopes to attract users by returning high yields on their deposits while maintaining the benefits apparent in traditional outlets such as quick, fee-less transactions. For existing crypto investors wishing to take out a loan, Celsius provides an opportunity to receive dollars without cashing out of cryptocurrency holdings.
The system is based around their native token CEL, which is used to take loans, provide rewards, and make payments.
Further, Celsius implements a loyalty program where status is reflective of CELs value in the user’s portfolio. As a member progresses to each subsequent tier, they are given bonus rewards and discounts on loan interest.
For more regular updates from the Celsius Network team, you can bookmark the Celsius Network Blog, which includes weekly updates, new offerings, and explanatory articles.
How Does Celsius Work?
The Celsius Network is composed of hosted accounts on Celsius and a variety of crypto exchanges intending to minimize the transfer of crypto-assets outside its system.
Ultimately, there are four key players within Celsius system:
- Lenders – Depositors who earn interest on their accounts holdings
- Borrowers – Margin traders who wish to take leveraged short or long positions
- Celsius Platform – Facilitates trades, manages risk, and determines trading fees
- External exchange markets – Executes trades and borrows/provides liquidity
To earn extra income using the Celsius network, participants deposit crypto assets on the platform and earn rewards on a number of cryptocurrencies, such as Bitcoin, Ethereum or USDC.
Celsius manages deposited funds in a ‘Lending Stake Pool,’ subsequently lent to external exchanges, and the interest received is distributed among the users.
To determine the distribution paid to lenders, Celsius uses a modified Proof-of-Stake (PoS) formula where the interest paid to lenders is a function of the funds deposited and the amount of days participating in Celsius’ consensus mechanism.
There are a few types of users who may wish to borrow through the Celsius platform.
- General Users – Users who deposit crypto on the Celsius Network and using the funds as collateral to receive a loan.
- Traders – Accredited investors (or SEC registered funds) who borrow capital from Celsius lending pools to trade. These accounts require a minimum balance of $10k to cover potential losses and fees that occur in certain trading activities.
- Exchanges – Institutions who borrow from Celsius lending pools should they need the added liquidity to settle trades.
-Original Post Via: What is Celsius? (CEL) – The Beginner’s Guide
*Bookmarked Additional In-Depth CELSIUS NETWORK Review: “The Official 2021-2022 Review of the Celsius Network“
Celsius is a democratized reward-earning and crypto lending platform accessible via web and mobile app. Built on the belief that financial services should only do what is in the best interests of the community, Celsius is a modern platform where membership provides access to curated financial services that are not available through traditional financial institutions. Crypto holders can earn rewards by transferring their coins to their Celsius account and can borrow USD or stablecoins against their crypto collateral at rates starting at 1% APR.
+Download the Celsius app and start your journey to financial freedom today.
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high-risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions. CelsiusCow.com does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is CelsiusCow.com an investment advisor. Please note that CelsiusCow.com participates in affiliate marketing.