What investors should know about Celsius — review by DotBig
Celsius, which was started in 2017, is one of the current DeFi crypto investment opportunities that causes many discussions in the crypto community. Many investors have severe concerns regarding the profitability of investing in this project and making money through this DeFi platform. Do any actual reasons back these concerns? Let’s consider both sides of this coin and look at the prospects of Celsius investing.
Key advantages and disadvantages of Celsius for investors
To understand why people might be interested in making investments in this project, let’s consider what benefits the ones who work with it can get:
- Celsius is an advanced decentralized-finance network. Through it, any cryptocurrency holder can make p2p deals with other participants without the interference of any financial institutions.
- The platform offers its own loyalty crypto token traded under the CEL ticker symbol. This also is applied as the major means of making exchanges there. Users can join any level of the loyalty program and get weekly rewards in the CEL coins.
- Celsius has developed a very user-friendly and efficient payment service — CelPay. It has all the capabilities to become an equal alternative to PayPal. CelPay is almost an independent product that provides its services even to those users who don’t have accounts in Celsius Wallet.
- Unlike other popular DeFi networks, such as Ethereum, for example, the Celsius network charges no fees at all.
Despite these positive features, which make the project interesting for investors, there are some considerable drawbacks.
- Despite being a DeFi platform and offering DeFi services, the Celsius network imposes some very strict conditions that make users liable for the platform’s legal expenses and fees.
- Celsius is a decentralized platform but it doesn’t an independent crypto exchange. It doesn’t offer crypto trading services, which cuts down the number of its actual functional features.
- The CEL token is not available for US residents. Thus, these users can’t count on a huge number of Celsius perks.
- Over the year, the Celsius crypto price has been declining. Experts forecast that the CEL coin might lose most of its value by the end of 2022.
Making money with Celsius
The simplest way to make money with Celsius is to buy and hold the CEL coins expecting that their price will grow and you’ll be able to sell them under profitable conditions. However, when buying digital currencies, keep in mind that the market might be highly volatile. Besides, the predictions of experts, specifically for the CEL coin, aren’t optimistic.
You can also make money from interest rates. The amounts of your earnings depend on the chosen layer of the loyalty program. To join it, you have to buy a certain amount of its loyalty tokens. The bonus rewards are paid by the platform every week. The lowest level you can join is the Bronze tier. For holding 5–10% of tokens, the platform will reward you with a 5% bonus reward. To join the platinum rank, you have to become at least a 25% holder.
There are controversial thoughts regarding the Celsius crypto platform. On the one hand, it’s quite a safe option for making passive income through bonus rewards. On the other hand, it takes very strict control over your account and doesn’t offer trading services.