Why Are People Going Crazy Over Celsius Cryptocurrency? Here Are 3 Facts You Need To Know
Blockchain technology has completely revolutionized the way we look at investing.
Before, it was just stocks and real estate, but now there is bitcoin, ethereum, dogecoin, NFTs, and much more.
All things considered, it would appear that the world is preparing to shift away from fiat currencies.
50 years ago it was impossible to buy anything without entering a physical marketplace, now people only leave their homes to get sunlight.
Almost everything can be done from home and most business transactions are done without the movement of physical monetary instruments.
All you need is a smartphone and you’re set!
So what’s the deal with Celsius Crypto?
It is not exceptional compared to its peers, but its additional features make all the difference.
Its founders, Alex Mashinsky and S. Daniel Leon, have designed it to be an “… all-in-one banking and financial services platform for cryptocurrency users.”
For context, see the following facts.
1. Celsius allows you to borrow Cryptocurrency
Just as you can borrow money from a bank, it’s possible to borrow crypto. However, you would need to put up all your crypto as collateral.
If things go south, you’ll lose all the cryptocurrency you have and be in debt.
Yikes!
Celsius allows you to put only a fraction of your cryptocurrency as collateral through its Loan To Value Ratio (LTV). Additionally, interest rates for loans start at 0%.
That was not a typo.
2. Celsius allows you to gain interest on your cryptocurrency
Here is another way in which Celsius works like a bank.
After you leave your money in the bank for a while, it gains interest. The same is true about having Crypto in your Celsius wallet.
However, Celsius has a plethora of rewards and bonuses based on your membership.
The lowest tier gives you at least 10% on bonus rewards and for holding currencies you can get at least 13.99% APY (Annual Percentage Yield). That’s an APY higher than most banks!
3. Celsius Cryptocurrency has no fees attached
This may be the best feature that Celsius crypto offers. When doing transactions via blockchain, there are usually gas fees that must be paid. It is similar to that fee you pay to get your money out of the ATM.
As your transactions go up, so do your fees.
With Celsius crypto, you don’t pay any fee per transaction. Everything you do outside of borrowing, lending, and buying crypto is free.
Nice benefit, huh?
Everything that glitters is not gold.
Celsius may seem like the next best thing, but the platform is less than five years old. As such, you should pay attention to what trading experts and crypto news outlets are saying about it before you decide to give it a try.
Nothing beats caution.
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.
