Blockchain Lending Company Celsius Offers Loans at 1% APR
Celsius Network is a blockchain lending company that serves a similar role to banking institutions. The blockchain fintech company accepts bitcoin, ethereum, and other crypto token deposits and provides varying levels of interest for those different digital assets.
Essentially, Celsius is an interest-earning platform for those who hold assets with the firm.
It is prudent to note that Celsius is one entity that has been around since 2018 and has grown at a significant pace with over 100,000 global users of their latest report. The rapid growth indicates retail and institutional interest in the emerging digital asset world. It isn’t the only entity with this business model within the cryptocurrency sector and must continue to grow by understanding market dynamics and providing compelling offerings.
That’s why this latest move of offering retail consumers with 1% APR is no surprise.
The COVID-19 1% APR Offer By the Celsius Network
The cryptocurrency network offers its retail clients with USD and stablecoin loans by holding their digital assets as collateral. But why are they offering this program?
According to the company, they realize that COVID-19 is one unexpected factor that placed many in financial jeopardy. One way for consumers to raise funds to cover expenses and stay afloat is by taking out loans.
They can do so the traditional way of going to banks and dealing with a slew of minor inconveniences in addition to paying higher interest rates on loans or go to the Celsius Network. But with the Celsius Network, individuals must have cryptocurrency collateral.to
The company looks at the total value of the cryptocurrency assets and provides a loan with a margin of safety for the company. For instance, if you want to deposit $3,000 worth of bitcoin with Celsius, you can take out a $750 loan at 1% APR.
That’s a compelling deal if you account for the risks involved with the transaction.
What are the risks present in the equation? Custodial risk is one concern. That’s where the digital asset is lost due to a security issue. But Celsius has strong incentives to do what they must to minimize the chance of this taking place. They have not reported suspicious activity and have not suffered any attacks.
Next, it is a centralized platform, and they have more control over the funds than you would in an independent wallet or account. Essentially, they must comply with regulations and governments. This compliance means that you can experience the seizure of your assets if you are dabbling in unlawful activities.
How Do You Apply for a Loan?
Go to the Celsius Network website, submit a “12-month USD or stablecoin loan request for $1,000 or more through the Celsius mobile app at 25% LTV.”
What other benefits can you avail by taking advantage of Celsius platform?
- No credit checks
- Zero origination fees
- Variety of plans
- Better Deals for those that hold CEL
The Cryptocurrency Loan Value
One of the regular questions people ask is if bitcoin is a Ponzi scheme, and if the only value comes from more people buying the asset. Cryptocurrency enthusiasts point to gold and state that bitcoin has similar properties except it is better hard money as it is digital, secure, immutable, and easily transferable.
First, it stores value; second, it has a payment network similar to Paypal and Western Union that enables users from across the world to send value to each other in bitcoin without third parties.
Further, companies such as Lolli, Fold, Pei, and Storm enable people to earn bitcoin when they shop. These apps have a robust following indicating the belief in the bitcoin store of value narrative.
Exchanges across the world have built and capture revenues around bitcoin as well. Finally, more institutions such as Celsius step into the market and augment bitcoin value by using it as a form of collateral to obtain USD loans.
Celsius Network is a blockchain lending company that serves a similar role to banking institutions. The blockchain fintech company accepts bitcoin, ethereum, and other crypto token deposits and provides varying levels of interest for those different digital assets.
Essentially, Celsius is an interest-earning platform for those who hold assets with the firm.
It is prudent to note that Celsius is one entity that has been around since 2018 and has grown at a significant pace with over 100,000 global users of their latest report. The rapid growth indicates retail and institutional interest in the emerging digital asset world. It isn’t the only entity with this business model within the cryptocurrency sector and must continue to grow by understanding market dynamics and providing compelling offerings.
That’s why this latest move of offering retail consumers with 1% APR is no surprise.
The 1% APR Offer By the Celsius Network
The cryptocurrency network offers its retail clients with USD and stablecoin loans by holding their digital assets as collateral. But why are they offering this program?
According to the company, they realize that COVID-19 is one unexpected factor that placed many in financial jeopardy. One way for consumers to raise funds to cover expenses and stay afloat is by taking out loans.
They can do so the traditional way of going to banks and dealing with a slew of minor inconveniences in addition to paying higher interest rates on loans or go to the Celsius Network. But with the Celsius Network, individuals must have cryptocurrency collateral.to
The company looks at the total value of the cryptocurrency assets and provides a loan with a margin of safety for the company. For instance, if you want to deposit $3,000 worth of bitcoin with Celsius, you can take out a $750 loan at 1% APR.
That’s a compelling deal if you account for the risks involved with the transaction.
What are the risks present in the equation? Custodial risk is one concern. That’s where the digital asset is lost due to a security issue. But Celsius has strong incentives to do what they must to minimize the chance of this taking place. They have not reported suspicious activity and have not suffered any attacks.
Next, it is a centralized platform, and they have more control over the funds than you would in an independent wallet or account. Essentially, they must comply with regulations and governments. This compliance means that you can experience the seizure of your assets if you are dabbling in unlawful activities.
How Do You Apply for a Loan?
Go to the Celsius Network website, submit a “12-month USD or stablecoin loan request for $1,000 or more through the Celsius mobile app at 25% LTV.”
What other benefits can you avail by taking advantage of Celsius platform?
- No credit checks
- Zero origination fees
- Variety of plans
- Better Deals for those that hold CEL
Big Picture: The Cryptocurrency Loan Value
One of the regular questions people ask is if bitcoin is a Ponzi scheme, and if the only value comes from more people buying the asset. Cryptocurrency enthusiasts point to gold and state that bitcoin has similar properties except it is better hard money as it is digital, secure, immutable, and easily transferable.
First, it stores value; second, it has a payment network similar to Paypal and Western Union that enables users from across the world to send value to each other in bitcoin without third parties.
Further, companies such as Lolli, Fold, Pei, and Storm enable people to earn bitcoin when they shop. These apps have a robust following indicating the belief in the bitcoin store of value narrative.
Exchanges across the world have built and capture revenues around bitcoin as well. Finally, more institutions such as Celsius step into the market and augment bitcoin value by using it as a form of collateral to obtain USD loans.
If bitcoin keeps its current characteristics that help believe in the network and digital, firms such as Celsius build around bitcoin, then the value is undoubtedly present.