Celsius Network Review – Blockchain Banking

Celsius network review

Celsius Network is a blockchain banking firm with a multi-purpose platform. On the Celsius Network, you have the options of lending, borrowing, HODL your funds and sending funds from your wallet. Celsius Network lets you earn a 12% Annual Percent Return (APR). Celsius Network has a wide range of crypto which can be lent out to other users. The concept is in essence to distribute the earnings of Celsius Network between the lending users, rather than Celsius Network keeping all the profits, like the banks.

The inventor of Celsius is the same who create VoIP (Voice over IP). He now wants to build Celsius Network as a blockchain banking network. The idea that Celsius Network is a blockchain banking network will make a decentralized banking network, rather than the traditional banking. With a blockchain function as banking such as Celsius network, there is no way to tamper with the money, hence Celsius cannot commit fraud with our money. Furthermore, Celsius cannot just print money like traditional banking systems.

Celsius Wallet App Button

So far Celsius Network has over 45.000 users, these users have together deposited over 25.000 BTC, and a total of $400.000.000 worth of cryptocurrency. Over the lifespan of Celsius Network, a total of over 4 million has been repaid in interest from the deposited funds.

Celsius Network concept

Celsius Network

The slogan goes “The world needs banking, but it does not need banks”. Celsius works on cutting the banks as Celsius has the belief that banks take to much of the interest earn. See, the banks work by lending other people’s money (you and me who have fiat money (government-issued money like the Euro and Dollar)) to other people who needs loans. In other words, it means if I have 1000 euro in my bank account, those 1000 euro is lent by other people. The bank takes an interest of between 5-20 percent. As we all know we only get about 1% annually for having funds in our bank account. Personally, my bank offers me a 0,1% annual interest! This means that the bank profits 4-19 percent of YOUR money.

Watch the video below to hear Alex Mashinsky the CEO of Celcius Network explain and discuss their vision of the Celsius Network. He is also discussing the potential of blockchain in general.

Coins, Fees, And Interest

The interest rates are dynamically updated every week. The interest rates change based on the demand from borrowing customers. Currently, there are 15 different coins on their platform. Each coin is eligible for earning interest. Furthermore, you can earn interest on any deposits no matter the dollar amount. At Celsius Network they will treat everyone equally, hence no minimum deposits.

Currently, it is possible to earn a 9,25% interest in stable coins. This is without any of their loyalty or CEL token benefits (more on that later).

Celsius Network - In app screenshots (source: https://celsius.network/)
Celsius Network – In-app screenshots (source: https://celsius.network/)

Celsius Network does all of this without any fees. Hence, there are no fees on deposits, withdrawals, transactions, no early termination fees, etc. The platform is without fees.

Some Numbers From Celsius Network

Celsius Network distributes 80 percent of their revenue. So, unlike the banks, Celsius Network is paying you, your own money back in interest. Therefore, Celsius Network is a newer alternative in the FinTech industry. Currently, Celsius Network has $50 million assets under management, while their wallets are insured up to $100 million. Their wallet provider is BitGo, and the insurance covers loss of keys, external hacking, and insider theft. To this date, they have issued over $1.2 billion in loans from crypto. Currently, Celsius Network has over 46.000+ active wallets.

Security of Funds

Celsius Network provides security of their wallets through BitGo. BitGo is the best in the business of securing cryptocurrencies, according to Celsius Network. BitGo is trusted by many different blockchain corporations, among the bigger is Bitstamp, ripple, Genesis, Upbit, and Nexo. Furthermore, they have a “multi-sig” system in place at BitGo. This means that no single person can move any funds without multiple parties’ approval. Another system that is in place for the security of their funds is the collateral. Whenever coins are being lent from the asset pool, Celsius Network requires up to 120% collateral in other forms of value.

The Celsius app is secured through multiple systems. First of all, the wallets at your disposal in the app is secured by BitGo. Celsius has added additional features, such as password protection, entering a PIN for any withdrawal, inability to change wallet addresses without verifying identity with Celsius employees and of course a 2-factor authentication.

As of now, Celsius Network has no external auditors. However, they claim it will come in the near future.


The lending of your cryptocurrencies is really easy. All you need to do is to download the Celsius Network app, verify with KYC, and deposit your coins. That is all, from now on you will earn interest every Monday. The interest is dynamically changing every week according to the demand from borrowers. Meaning the more a borrower is willing to pay for a certain coin the higher the interest.

The interest earned on Celsius Network is compounding. This means that you will earn interest of the interest you have previously earned.

You can calculate the returns by using their calculator below to see your returns. You can find the coins you hold and then enter the annual return. Select your coin’s worth, and that will give you the return based on the current interest rate.

The interest you receive on Mondays is calculated from Friday to Thursday. This essentially means, that deposits on Friday, Saturday and Sunday will not generate an interest payment the following Monday but the Monday after. However, it is paid on a Monday which is a nice way to start the week.

Celsius Network - Interest rate weekly update from the 16. of September
Celsius Network – Interest rate weekly update from the 16. of September

Celsius Network also lets you earn interest regardless of the deposit size. There is no minimum deposit. Therefore, if you are holding your crypto anyway, why not earn some interest on it? Furthermore, there is no maximum on deposits. So, if you are a multi-millionaire you can deposit it all. However, you cannot withdraw more than $20.000 before verifying with Celsius Network. This is the extra protection of your funds.

CEL token and loyalty program – Extra interest!

If you want extra earning you can opt-out of the earning in kind, and earn in CEL tokens instead.

Celsius Network has the utility token called CEL. The token is used to give the CEL HODL’ers exclusive advantages to their services. The first is a better interest rate (as seen in the picture above). The loyalty program of CEL is based on the value of CEL tokens in relation to your total wallet value.

Bonus interest
Loan interest discount
Bonus interest
Loan interest discount
Bonus interest
Loan interest discount

The loyalty level is dynamic and can change based on the value of your wallet balance. Therefore, if you have in mind to achieve these loyalty levels, it is a good idea to good an eye on the market fluctuation.

Remaining Utilities of CEL Token

The second utility you can earn with the CEL token is skipping the queue. Whenever the dollar loans become limited Celsius has implemented the CEL token as a prioritization tool. The higher the CEL balance the more you skip off the queue. The third utility obtainable through the CEL token is lower interest rates on loans. Depending on the loyalty level of your CEL balance, it is possible to obtain a 30% discount on all interest payments. The fourth utility is the increased earned interest. If you chose to receive payments in CEL tokens, you can earn an additional 30%.

The fifth utility is lower interest rates on coin loans. Institutions borrowing and paying large amounts will also receive up to a 30% discount of interest on loans using CEL tokens. The sixth utility is a cashback system with CelPay. Celsius will reward CelPay transactions with CEL. You will earn back 1% on BTC and ETH CelPay transactions and 2% on all other CelPay transactions. The seventh utility is a premium service, support and event invites. The top 100 CEL token holders will receive benefits like live customer support hotline, invitations to industry top event, meet-and-greets with the CEO Alex and the Celsius team.

To achieve these utilities, members must hold at least 1 CEL token in their wallet.


The borrowing on the Celsius platform seems simple and straightforward. In the app, you can calculate the collateral needed to obtain whatever sized loan you need. An example could be a loan of $3000. Firstly, the interest rate you want must be chosen, you can choose either 4,95%, 6,95% or 8,95%. Secondly, the time period of the loan. Currently, you can choose 6 months, 1 year, 2 years or 4 years. The interest rate and the loan period will determine the amount of collateral needed for you to obtain the loan. As of now, there is 7 coins that can be used as collateral: BTC, ETH, XRP, BCH, LTC, DAI and DASH. Thirdly, it will tell what you need to deposit to apply for a loan.

With the example of a $3000 loan, at an interest rate of 4,95%, I will pay $12,37 a month and needs collateral of 1,52413 BTC. Whereas, with an interest rate of 8,95% I will pay $22,37 in interest per month with collateral of 0,76206 BTC. Hence, the larger the interest rate, the lower the collateral.

Interest – The passive income part

Currently, I have my Bitcoin and Litecoin deposited in the Celsius app. The interest earned is approximately 1 euro per week. That is not bad considering I have a total deposit (of today’s value) ~1400 euro. With 52 weeks in a year, I am going to earn ~52 euro. That is an APR of 4%, way better than any bank account.

Monthly Earning of Crypto in Euro Amount
Monthly Earning of Crypto in Euro Amount
Celsius Wallet App Button

Conclusion – My experience using Celsius Network

In the 9 months, I have used Celsius Network I had no problems. I can withdraw whenever I need to. I get my interest every week, no problems. My only concern is the private keys. However, Celsius Network could not manage all our funds so efficiently if we all had our private keys. Furthermore, if a toxic person was to work at Celsius he could run off with the private keys, which is NOT an option as they use BitGo.

I would strongly recommend Celsius Network if you are holding your coins and not actively trading. They give you a passive income stream, and you do not have to think about the security of your funds. They have BitGo as fund protectors and insurance covering $100 million losses.

As the future is inevitable and banks are getting caught doing major frauds, the blockchain (or another technology) will sooner or later replace this system. Therefore, I am confident that Celsius Network as a blockchain banking system will be a major set forward for the future.

If you want $10 extra when you sign up you can use the following link to sign up and start earning that crypto interest!

Frequently Asked Questions on Celsius Network

Is the interest compounding?

Since February 2020 all crypto deposited on Celsius Network is compounding.

Is Celsius Network safe?

I have used Celsius Network for over a year, and so far i have gotten my interest on time and never lost anything. Furthermore, the support is fast and very friendly.
BitGo holds some of the crypto in cold storage deposited on Celsius Network and has insurnace of digital assets up to $100M.

Is my deposit insured?

Your personal deposit is not insured. However, Celsius Network is using BitGo for cold storage. BitGo’s policy covers $100M worth of digital assets.

Disclaimer: This post may contain affiliate links. I may receive a commission when you, the visitor, uses an affiliate link. Investing involves risk of losses.


I am ThePoorInvestor and I am on a financial independence journey. I am investing in P2P-lending to create a high cash-flow return. I disclose my income, expenses, investments and everything financially relevant. It is all for you to see, I have nothing to hide. I have invested in a total of four different investment types throughout my 2 years of investing.

2 thoughts on “Celsius Network Review – Blockchain Banking

    1. Hi Thomas,
      Yes, it is active.
      The condition is that you get $10 in BTC when you deposit $200 at the time of signup. The conditions are regularly changed and you can keep up to date here: https://support.celsius.network/hc/en-us/articles/360002132218-How-do-referral-codes-work-
      – ThePoorInvestor

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