CEL and Celsius Network - a cryptocurrency loan center

A deposit in cryptocurrencies with an interest rate much higher than in a bank has long been nothing unusual. But the Celsius network also makes money by borrowing cryptocurrencies, and 80% of the amount goes to its users. No wonder its popularity - and with it the CEL token - is growing rapidly. 

We continue the cycle of the Forex Club portal, in which we analyze and describe the largest, highest-valued, most interesting, most developmental, advanced and also the most controversial cryptocurrency projects around the world. Today it's time for Celsius Network and the CEL cryptocurrency, which is a hit in all rankings.

Be sure to read: New cryptocurrency laws and regulations in Poland [2021]

How Celsius Network works 

Alex Mashinsky

Calsius Network is a platform founded in 2017 by Alex Mashinskywho is its CEO to this day. His partner from the beginning is Daniel Leon, who holds the position of vice president. Thanks to the platform, you can earn interest on the cryptocurrencies located there. You can also take out flexible loans in virtual money. 

How to do it? A loan is simply indicating the amount and depositing a cryptocurrency that will be its security. 

Earning money is also very simple. It is enough to deposit the selected cryptocurrency on the platform and we will be paid interest once a week. What height? It depends on the specific currency, but they are not constant values. They depend on the demand for cryptocurrencies in a specific period. If we have, for example, another rally on Bitcoinie and there are more buyers than the mined new coins, not only is the price rising, but also the demand, so it grows  also the interest rate on the deposit in BTC. If, on the other hand, the above-average liquidity causes more interest in e.g. Tether, we will earn more on investing USDT. Currently, the minimum interest rate exceeds 2%, but there are also cryptocurrencies where you can earn over 20% per year. If we add compound interest to that, because the interest is paid weekly, you have a pretty good sum. Of course, you have to take into account that the interest rate on the deposit may change every week. Not to mention the value of the cryptocurrency itself. 

Contrary to appearances, the surprisingly high interest rates are nothing particularly dangerous, and the business model has nothing to do with a financial pyramid. 

Why is it worth having a CEL token

The average interest rate on loans at Celsius is 9%. All of them are secured with cryptocurrencies, i.e. an easily-tradable element of the financial system. Especially since the lending of cryptocurrencies is primarily used by cryptocurrency exchanges, which increasingly offer cryptocurrency trading with leverage and must secure their liquidity. The offer is also used by hedge funds and institutional clients trading on the cryptocurrency market. 

Celsius leaves its creators 20% of the profit from these transactions, and 80% goes to cryptocurrency investors. Assets under management by Celsius are estimated at USD 2 billion. 

The greatest amount is earned by paying interest in the CEL token, which not only simplifies transactions on the Celsius platform, but also allows you to get an average of 30% more from your investment than when withdrawing in deposited cryptocurrencies. CEL token holders can also count on lower interest rates on loans taken.

CEL token quotes

As of 16.01.2021/5,05/448, each CEL token costs $ 563. Currently, 478 of the target 695 tokens are traded, translating into a market cap of $ 663. They can be traded on 643 cryptocurrency exchanges from around the world. The daily turnover exceeds USD 2 million. The peak of trading was on January 264, 302, when the CEL token was valued at $ 557.