Celsius Network lets you buy coins, earn interest on your crypto, and instantly borrow dollars at 1% APR (Annual Percentage Rate) against it, with no fees EVER. I gotta tell ya, I don't know how you beat that! Celsius Network is basically the best thing since sliced bread, and in this blog post we are going to review the app and learn how to use it! But first, what better way to learn about Celsius Network than hearing from the CEO himself, Mr. Alex Mashinsky.
Before we get started and dive into the app, a really cool tool to play around with is the Celsius Interest Calculator. If you've read any financial literacy books before, you know that in order to be financially free, your monthly income must be greater than your monthly expenses. If you can achieve this, you never have to work another day in your life! Sound like fun? Stay with me.
There are three types of income in this world- earned income, portfolio income, and passive income. Earned income usually comes from working a 9-5, your daily job. Portfolio income comes from appreciation in the value of your portfolio. That could be your stocks appreciating by 8% in a year, the stated value of your home or real estate investments appreciating, and of course the price of Bitcoin going up or your altcoins mooning ;) These are all examples of portfolio income. And finally there is passive income. This could be rental income for real estate, dividends paid on your stocks, money generated by your business, or APY (Annual Percentage Yield) paid on your Celsius deposits! Ok, now that we understand this, we are one step closer to financial freedom!
If you know what your monthly expenses are, you can use the Celsius Interest Calculator to see how much USDC (USDC is a stablecoin tied to the value of the USD) you would need to deposit on Celsius to achieve financial freedom. Keep in mind that your monthly expenses may change, depending on where you are living in the world, or where you plan to retire.
From using the Celsius Interest Calculator, we can see that a deposit of 150,000 USDC would generate a passive income of over $17,000 a year! That is more than enough to retire on in Central America or Southeast Asia! The interest is paid out weekly and there is no locking of your funds. You can withdraw your interest or principal at anytime! Dreaming yet? Ok, let's dive in!
Downloading and Setting Up the App
You can find the Celsius Network app in both the App Store for iPhone users or Google Play for Android users. Once the app is installed you will want to set up your username and password, and also a passcode and/or 2FA (2-Factor Authentication) for security.
KYC (Know Your Customer) Verification
You will be required to fill out KYC information to help the prevention of illegal use and money laundering. KYC is the norm these days for any reputable financial app or exchange.
Navigating the Home Page
You will notice two main sections right away inside the app- "Total Wallet balance" and "Total Interest earned." The total wallet balance is the cumulative total of all your deposited assets represented in USD. The total interest earned is the amount of interest you have earned over the lifetime of using the app. You will get a notification every Monday letting you know how much interest you have accrued over the past week. Monday will become your new favorite day of the week! Under total wallet balance, you can choose to deposit coins. Under total interest earned you can view the rates this week. Please note that the rates are variable, meaning that they can change from week to week.
Also on the home page, your deposits will show up, along with the interest rate that you are currently earning on them. US users can only earn interest paid in the coin that they have deposited, however international users can choose to earn interest paid in CEL coin. If you choose to receive CEL coin, your interest rates will be even higher (or borrowing rates will be even lower)!
Although you can buy funds directly on the app, I would still recommend somewhere like Coinbase. Coinbase charges a 1.49% fee on purchases. Celsius uses third party providers that charge what seems to be up to 5.25%! I haven't done it because, well, that's just too high! Make sure that you only deposit like coins to like wallets! For example, ETH goes into your ETH wallet, NOT your BTC wallet. For the deposit, you can copy your Celsius wallet address or it's QR Code and paste into the "send to address" field in your other out of app wallet (i.e. your Coinbase wallet). Celsius currently supports deposits of 30 different coins, with 8 more coming soon!
To withdraw your funds, you simply need to enter the wallet address that you want to send them to, preview the transaction, and press send! There are no fees from Celsius, however there may be some small network fees. Note that Celsius is not an exchange, meaning that you cannot trade your BTC for USD, etc. You will need an exchange like Coinbase, Coinbase Pro, Bithumb Global, or an other exchange to do that.
In addition to earning interest on your deposits, you can also use your crypto as collateral to generate a low-interest loan! You can choose to borrow dollars or stablecoins. Although there are 30 crypto's available to deposit on the app, only 27 of them are eligible to be used as collateral for a loan. The minimum loan amount is $1,000. You can choose to put up 25%, 33%, or 50% LTV (Loan to Value). For example if you choose 25%, that means you will have to put up $4,000 as collateral. If you choose 50%, you will only have to put up $2,000 as collateral. The more collateral you put up however, the lower your loan rate will be. If you put up 4x collateral, the interest rate on your loan will only be 1% APR (Annual Percentage Rate)! Try getting that at a bank. You can pay off the loan in 0.5, 1, 2, or 3 years. Either way, your interest rate will stay fixed... 1% per year. If you only put up 2x collateral, your interest rate will be 8%. Still not bad compared to what some credit cards charge.
Overall, the Celsius app is a game changer and in my opinion, the best in the industry. One of the stated goals of the CEO Alex Mashinsky is the to give depositors the financial freedom to retire and live off of the interest generated on their Celsius account alone. Let that sink in. Gotta love the vision. And as a dreamer, I'm hoping it comes true for me too! Celsius will soon start a series celebrating its depositors that have been able to do this very thing, retire and live off the generated interest. Will I see you on there? Will you see me on there? I hope so! Good luck and happy earning!
Join Celsius Network today using my referral code 1785433e8f when signing up and earn $20 in BTC with your first deposit of $200 or more! #UnbankYourself