Celsius Network is a crypto loan platform that has been operating since 2018. It is a kind of decentralized bank for cryptocurrency users.
The user can deposit cryptocurrencies to the account (almost any, but the region of residence of the user and regulatory restrictions matter), or arrange a loan through the wallet.
For this, he receives a reward either in cryptocurrency or in the CEL token. In the latter case, the amount of remuneration is higher.
The invested funds are put into circulation, and in addition to the fixed percentage, the user receives additional income.
When borrowing funds, the user must secure his loan with a collateral, which, depending on the market situation, will be X2, X3 of the amount he wants to receive.
That is, if you do not want to sell your Bitcoin, believing that it will grow, you urgently need cash, then you put Bitcoin into your account, providing a loan, and you receive dollars.
If the price of Bitcoin rises a lot, your collateral may decrease, if the price of Bitcoin falls, you must add Bitcoins to secure credit.
The credit market is an important resource for any industry. For participants in the cryptocurrency business – exchanges, funds, ICO/IEO projects, Bitcoin ATM providers and exchange services – access to inexpensive loans secured by the prevailing asset on the balance sheet allows expanding capital management capabilities.
New products are especially relevant for borrowers from countries with expensive bank loans. For example, in economically unstable Argentina, interest rates exceed 60%, and due to currency restrictions, the population has very limited opportunities to hedge inflation risks. The annual rate (APR) for crypto credit services is only a few percent. Consequently, Argentine holders of BTC, ETH and other crypto assets can not only get an inexpensive loan in a matter of minutes, but also rely on an interest income from free digital assets with minimal risk.
It is likely that the development of crypto lending and DeFi will spark an increase in demand for coins used as collateral. Most likely, the most active borrowers through such services will be those who urgently need money, but have no desire to sell digital assets at a low price.These are, first of all, residents and companies from countries with high bank interest rates, cryptocurrency traders, as well as those who are trying to hide their financial activity from the ubiquitous state.
Crypto lending, including DeFi-based, is a rapidly growing and developing area. It is becoming a popular alternative to bureaucratic traditional finance, where yields on instruments fall against the backdrop of extremely low interest rates.
DeFi gives finance the flexibility and ability to earn a small percentage in a bear market and borrow funds at an acceptable interest rate. In addition, decentralized markets for synthetic assets are steadily developing, opening up new opportunities for traders.
The interface is simple, the application is easy to understand. If you have any questions, technical support replies to your mail within 5 minutes.
To enable the menu, you need to click the Celsius logo in the lower right corner. From the menu, you can manage your wallet, withdraw cryptocurrency, take out a loan or open a deposit.
Celsius Network does not take any commission for wallet replenishment, withdrawal of funds, early loan repayment and opening a deposit.