How To Buy Celsius Online in 2022
Celsius is a financial technology platform that offers savings accounts, borrowing options and payments options using digital and fiat assets.
This guide will help you understand the fundamentals of the token and how to buy Celsius in 2022.
What is Celsius?
Celsius, also known as the Celsius Network, is a fintech platform that can be accessed with a smartphone. It’s a blockchain-integrated alternative to traditional financial institutions, with options to lend, earn interest and make payments. It was set up with one goal in mind: to create a financial services business that works for the community, not the bankers.
This community-focused approach was a big hit amongst investors. Celsius returns 80% of all its earnings to users in the form of rewards. Most of these come in attractive interest rates or saving benefits. The remaining share of profit is reinvested in the platform to improve the user experience.
It can afford this using the process of rehypothecation. Through this process, crypto funds are held as collateral on the Celsius Network and are lent to another party. These parties include investors and companies who are looking to break into the cryptocurrency market. Instead of borrowing crypto from fragmented sources, investors can borrow crypto from a reliable source- the Celsius Network. Celsius appeals to investors by mixing cryptocurrency into one large pool, making the process of investing less stressful and complex. The interest it earns from each investor is also fed back to the community.
Celsius also has its own earning network in which individuals can stake their cryptocurrency for borrowing and in return, they will earn interest. Users can stake more than 35 tokens including options such as BTC, LTC, ETH, and stablecoins such as USDT, GUSD, and DAI. The Annual Percentage Yield (APR) of each staked cryptocurrency depends on the market demand for the token. In 2020, several tokens were earning more than 15% a year, which was significantly higher than anything offered by banks. Platform users also have the option to receive their earnings in the platform native token, CEL. By choosing to do this, payouts are 30% higher.
Celsius does not require a minimum deposit to start earning interest. There are also no penalties for failing to maintain a certain amount of funds. This means users can enjoy fewer restrictions and higher yields, without the hassle of a normal bank.
As of August 2021, CEL has a market cap of $1,467,352,511 239 million tokens in circulation. It has a maximum supply of 695 million and a fully diluted market cap of $4,269,446,079. 1 CEL token costs $6.14 and reached highs of $8 in May 2021.
How does Celsius work?
CEL was launched in 2018 and underpins the Celsius Network reward system. During the initial launch, only 50% of the tokens were issued. Of the remaining tokens, 25% went to the development team and the remaining 25% were locked into a smart contract. The tokens were scheduled to enter circulation once CEL hit a market value of $1.50 for more than 10 days and $3 for more than 3. It has since met both of these targets.
CEL has several functions in the Celsius Network for each group of users. Earners can accept rewards in the form of CEL and receive up to 30% more rewards on their deposits. Borrowers receive a 30% discount on interest payments by paying with CEL tokens. Institutions that borrow CEL tokens also receive a 30% discount on all interest payments.
The reward is based on the Celsius loyalty program, which uses individuals' CEL holdings to rank them. There are 4 different levels.
5-10% of your holdings are in CEL
10-15% of your holdings are in CEL
15-20% of your holdings are in CEL
20+% of your holdings are in CEL.
Now that you know what Celsius is and how it works, you can use one of the brokers above to buy Celsius. However, if you're still unsure on how to get started, continue reading!
How to buy Celsius online
It is difficult to buy Celsius at the moment. CEL can be earned through the Celsius Network or bought through a crypto exchange. At the moment exchanges are limited with Bittrex Global, Bitfinex, OKEx, and FTX being the most popular.
Here’s a step-by-step guide on how to buy Celsius online:
Step 1: Open an account
Step 2: Fund your account
Step 3: Make the purchase
Congratulations, you've just bought your first Celsius!
How to trade Celsius
CEL is not commonly traded compared to many other cryptocurrencies. You can trade CEL using Bittrex Global, Bitfinex, OKEx, and FTX. Simply choose the currency you want to exchange your CEL for and click ‘Trade’ to complete the transaction.