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Crypto Lending The Superior Way Of HODLing Part 3 OF 5

Crypto Lending – Where to lend your crypto? (part 3/5)

This part of the Crypto Lending guide will cover Celsius Network, the third and last platform that we will show as good example of how a lending platform should operate.

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Celsius Network – explained
Celsius Network is a company founded in 2018 by Alex Mashinsky. Mashinsky was one of the inventors and patent holders of the VOIP technology. He also holds numerous entrepreneurship awards. Forbes put Celsius Network in their Top10 companies to “watch for” in 2018, noting that the platform “is primed to disrupt traditional banking.”

Advantages of Celsius Network

When it comes to pros of Celsius Network, there are many. First off, users of the platform are allowed to deposit as well as hold their BTC, ETH, as well as several other top 10 cryptocurrencies. There are no fees whatsoever. This means no withdrawal fees, no transaction fees, no deposit fees, no early termination fees, even no origination fees. On top of that, there is no minimum deposit. Celsius accepts funds of any size, and they will never lock up the funds. You can withdraw anytime, whether it is because of an emergency, a better financial opportunity popping up or any other reason.

Celsius Network’s wallet is provided by BitGo (just like for Nexo). BitGo is the leader in using multi-sig encryption technology. Celsius lenders and borrowers are safely insured for up to $100,000,000.00 by Lloyd’s bank in case of a hack or bankruptcy. As with Nexo, this amount is for the company, not for each person.
When it comes to payouts, Celsius Network has weekly payouts for the interest earned. The platform also has great earning interest rates. Its interest rate is somewhere around 8% of interest earned on deposits of USDC, TUSD and GUSD. When it comes to the interest rates for deposits of ETH, BTC and some other cryptocurrencies, they are quite competitive as well, but not as good as the ones previously mentioned. Celsius Network also has rates of up to 10% if you accept to be paid interest with CEL tokens – their native cryptocurrency.

Disadvantages of Celsius Network

When it comes to cons, there are two noticeable ones. Celsius Network’s native token, CEL, has been suspended for the US customers. This means that the US customers can’t benefit from the 10% interest rate.

The other con is regarding their user experience. Celsius Network is only available via a mobile app. Its user experience is far worse than the user experience that its competitors provide.

Check out part 4 of our Cryptocurrency Lending series, where we will cover lending platforms that we do not recommend and explain why.

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By Keiran

Forex trader, media, marketing, entrepreneur and father

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