Celsius crypto loans review

The land of crypto loans is an area to be explored if you have the stomach for it. As the crypto market grows, so do associated financial fields. One of the intriguing players is Celsius Network.

The idea which originated in a coffee shop during a break has taken off with many crypto investors praising it. Of course, there are others who didn’t like it.

So today, we will take a look at the platform and check its pros and cons, in this detailed Celsius review.

Celsius pros and cons

Celsius Platform background

Alex Mashinsky, a holder of about 50 patents and one of the early developers of VoIP, decided to invent a “debank yourself” system, according to his own words. He and S. Daniel Leon drew up a plan on a napkin during a coffee break. And that is how the idea of the Celsius network was born.

In March 2018, the company released its native token CEL, making it available worldwide, and completed the ICO stage. They first released a mobile app, which is now in its third version, and only recently a web app version.

Celsius has offices in USA, UK, and Lithuania. The company is SEC-compliant and offers a significant degree of transparency. It possess a California Finance Lender Certificate, a Consumer Credit Loan license from Missouri’s Div. of Finance, a Delaware C license, and FinCEN MSB, as well as ISO 27001, so you can rest assured your data is protected.

As far as transparency goes, Celsius is probably the front-runner. The company’s social media accounts and website are full of helpful information, and there are weekly updates on its YouTube channel. The company takes the time to answer users’ questions and is highly praised because of this among crypto traders and investors.

Celsius’ Trustpilot score averages 3.4 which isn’t bad. It mostly has positive reviews. The unsatisfied users seem to like the platform and the general idea, but take issue with the unresponsive support. The ratings of the mobile app version are somewhat higher, on App Store, it’s 3.6, and Google Play places it at 3.8.

What makes Celsius special?

Celsius prides itself on transparency. This is also the reason why the network is respected by crypto traders. They do a lot of work to promote it and it’s the reason why many people trust it.

Although not an entirely new concept, the lack of fees shows a surprisingly effective model to conduct business. It allows users to not pay hefty fees for each and every transaction – especially beneficial if you swap cryptocurrencies often.

But the biggest novelty that Celsius brought is the way it splits the money. The majority, or 80% of the interest earned to be exact, is paid back to the users. The company retains only 20%. This just goes to show how a banking system could work (and once upon a time did) if the industry weren’t greedy.

How Does Celsius Work?

The basic premise is simple. You deposit the funds through the app and Celsius uses them to offer loans. A percentage of what it earns through interest rates and other activities is paid to you at the beginning of the week.

This is the basic principle of how even traditional banks (used to) operate. However, one key difference is that there is a greater risk associated with crypto loans. For one, you could lose your digital assets and, as per Celsius’ risk disclaimer, they are not obligated to compensate you for the loss.

However, Celsius is very highly regarded in the crypto community because, even during the hard times, as we have evidenced recently, they manage to assure liquidity. And, to a degree, this offers stability and security.

What are Celsius Services?

The Celsius project offers many services, mainly borrowing and lending money. But you can also use it to buy, send, receive, or swap crypto.


One of Celius’ main features is borrowing against crypto, usually Bitcoin. Crypto loans offer a significant upside, as they eliminate the taxes associated with a capital gain. This would happen if you were to sell your cryptocurrencies and do what you need to do with the money. You also won’t be selling your crypto assets.

And Celsius offers great interest rates, depending on the loan-to-value ratio you choose. You can go as low as 25% or as high as 50%. Your annual percentage rate could start at 0,75%, which is unheard of in traditional financial institutions.

Celsius accepts BTC, ETH, and about 30 more coins as collateral, so you can take your pick. The terms can be six months, a year, or up to three years to pay off your debt.


Instead of just keeping your cryptos and waiting for them to reach the desired price, lending allows you to make a passive income off of them. It isn’t risk-free, of course (nothing in life is). We also don’t recommend putting all of your tokens into this scheme.

But the lending option allows you to make passive income weekly. Celsius pays the yield every week, which is almost unheard of. The APY rates can go up to 18.63%. There is a trick though, as for US residents these rates can differ, so you should check the Celsius website.

This represents a great way to earn interest on stablecoins and gold-pegged coins, as their prices don’t fluctuate as much. However, since every investment comes with risk, the rule of thumb is not to invest more than you are comfortable losing.

Earn Rewards

Through lending, you can also earn rewards, in the form of the Celsius native token (CEL). Aside from the fact that it could appreciate in value, you can also put the token forward for additional benefits.

There is a loyalty tier list you can climb to decrease the interest rates and increase the bonuses. It’s basically an increased percentage of what you earn through the Celsius platform. The rates vary between 10% and 35%. But different tiers also offer discounts on loans, from 5% to 30%.

Climbing the tier list is dependent on how many CEL tokens you have.


Swapping one coin for another usually involves fees. But not with Celsius. This is most likely one of their best features. You can quickly exchange one token for another and there will be no additional fees.

Looking at the other crypto exchanges, the fees for such a service differ, mainly in the realm of 0.02%-0.1%.


Through the Celsius app, you can buy cryptocurrencies. This is another feature that doesn’t involve any fees, which is great for crypto investors. While Celsius doesn’t charge fees for buying, they have partnered up with crypto exchanges, such as Bitfinex, Paxful, and Liquid, so their partners may charge you.

Pay and Get Paid

In the Celsius app, you can find the feature to send and receive money through CelPay. The transfer is quick and you won’t need to pay any fees. Celsius has centered its services on a hustle-free, fee-less model, which is a great advantage of its app.

Credit Card

The Celsius credit card is yet to roll out, but you can sign up to be one of its first customers. This is a new and exciting feature. But given the track record on similar projects in the crypto market, there is no reason why this shouldn’t be a success.

Not all of these features are equally available. So it is best to check which Celsius services are available in your country.

What are Lending Fees and Penalties?

If you already have CEL tokens in your portfolio, you can get a further discount on your loan. This is also a tier system basically. Paying back interest rates in CEL earns you a 25% discount as well.

And while they claim there are no penalties for your loan, you will need to pay at least six months’ worth of interest rates, even if you choose to close the loan early. They surely don’t call it that, but this is effectively a prepay penalty.

Celsius web and mobile app review

Both mobile and web app versions are designed to be simple to use. The Celsius dashboard is effective and you can use the app to deposit the coins and check the status of your deposited crypto assets.

When you scroll down, you can find the availability of coins that are supported for depositing inside the app, as well as the reward rates you can earn. They also feature small graphics, so you can quickly take a look at how a coin is performing. At the bottom, you can check the ‘Coming Soon’ section and see which coins Celsius is planning to add.

At the bottom right of the screen, you’ll find the Celsius logo which you can use to navigate the app. There, you will find the options to buy or deposit funds, send and receive payments, as well as buy CEL tokens.

Security is also an important part of the app. Celsius actually makes it easier for you to examine an overview of all of the features. While doing so, the app scores your security and allows you to quickly turn on additional features from there. No need to go through what they offer, one segment at a time.

We highly recommend turning on the 2FA. HODL mode is also a great feature for those users who don’t plan to send out funds for an extended period of time. The app basically locks your funds and you are then unable to transfer them until you deactivate the HODL mode.

The overall simplicity with which this app functions is awesome.

How to register with Celsius Network?

Opening a Celsius account is a straightforward procedure. You can download the Celsius app from the App or Google Play Store. You can also sign up with the web app.

Then, choose how you wish to sign up. The best option is by using the email address, but you can also choose a Google, Facebook, or Twitter account.

Choose your country.

Then, create an account by inputting your name, surname, and email, and create a password. If you have a referral code, you can use it during this step of the registration process. Before submitting the information, you will need to agree to the Terms and Conditions.

Make sure you use your real name, as you will later go through the KYC process. You will also need to verify your email address before continuing.

The last step of the registration process is to create a six-digit PIN code, and it mustn’t be your birthday. You will use this code when you want to access the Celsius app.

Now that you have created your account, it’s time to verify your identity, in order to be able to use the account. You will need to input your personal data, as well as provide a document. For US citizens, you also need to provide your social security number.

It doesn’t take long to be verified, usually, several minutes.

If you didn’t enter a promo code when signing up, you can do it before depositing the funds. You will receive a $50 sign-up bonus for a deposit larger than $400.

What People say about Celsius – Is it safe to use Celsius loans?

The community praises Celsius for its transparency and attitude toward the community. Celsius has proven itself a very safe option during turbulent times. So, as much as it can be, it is safe to use when compared to other similar networks.

However, crypto loans are associated with risks and in case of a loss, Celsius will not compensate you. As stated on its website, it doesn’t offer any type of insurance (FDIC, SPIC, or other). Factor that when deciding whether you should use its services or not.

Celsius vs Blockfi vs Nexo


Celsius is trending and its network is growing. If you want to earn a passive income through crypto loans, then Celsius is a great option. However, it does not come without risk. You need to be okay with losing some of your assets.

Celsius’ track record in maintaining the assets’ liquidity during difficult times is great, the company is transparent, and its rates are the highest. It is also licensed, which is another plus. On the downside, you need to leave it in control over the assets you want to earn interest on.

If you are a US citizen, you also need to be an accredited investor to earn interest. The interest rates in the US are lower than in the rest of the world, so this may not be as great of a solution if you live in that part of the world.

All in all, this is a decent option if you can stomach the potential loss. However, remember not to invest more than you are willing to lose.


How Does Celsius Network Work?

Since its founding in 2017, Celsius has quickly developed into a relevant cryptocurrency trading platform. In August 2021, the firm reported that its assets’ worth was over $2.2 billion.

Does Celsius offer credit cards? 

This should happen soon. While Celsius Credit Cards is currently waiting to be launched, this is expected to provide prepaid customers with daily rewards for crypto-coins and prepaid debit cards.

What are the pros of using Celsius?

Celsius offers great interest rates if you wish to earn a passive income on your crypto. They are also a great option for borrowing money if you need to. You simply take a loan and put down your crypto as collateral.


  • Nina Petrov is a theoretical mathematician, passionate about new trends in the global economy and blockchain technology. She is a devoted content creator and editor, crypto-enthusiast and stock market analyst.

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