Residents of the United States can register on the Celsius platform; however, new users in New York and Washington state will be unable to purchase assets through the app as of July 2021. When this is combined with recent issues involving customer assets being restricted, we believe there are better options to consider.
This cryptocurrency exchange is suitable for: While it has some appealing features, we do not believe Celsius is a good fit for most investors. The recent restriction of customer assets raises potentially serious concerns.

Table of Contents

Pros

Dependable DeFi services
Advantages of using its native CEL token
CelPay is a simple money transfer service.
The Celsius wallet app is insured for $30 million in assets.
Residents of 150 different countries can trade using a desktop, iOS, or Android apps.
There are no fees associated with minimum balances, loan origination, or transfers.

Cons

Concerns about asset restrictions for customers
Control is highly centralized.
Only a few coins and tokens are available for purchase.
Does not have its own cryptocurrency exchange; trading is done through third-party vendors.
Residents of the United States do not have access to the CEL token or its benefits.

What could be done better?

Control is highly centralized.

The decentralized nature of the various projects is what draws people to cryptocurrencies, particularly DeFi. Despite the fact that Celsius bills itself as a “democratized, DeFi platform,” its Terms of Service are surprisingly authoritarian. Consider the following passage (emphasis mine):

“We reserve the right, without prior notice, to suspend, freeze, or close your Celsius Account at any time for any reason, including by blocking your access to the Account or the Services.” Or another section says Celsius is not liable for any “errors” or mistakes it makes that cause you financial loss. You would also be liable for all of their legal fees and expenses, which could be deducted from any funds in your Celsius account.

“You are liable for all expenses and fees we incur for such conflicts or disputes, including internal costs and attorneys’ fees, and we may charge or deduct them directly from your Celsius Account balance,” the terms continue. While we understand the company’s need to protect itself legally, this is tough talk from an organization that appears to be committed to assisting ordinary people.

Celsius lacks its own exchange, resulting in a limited selection of cryptocurrencies.

Crypto exchanges typically have dynamic trading platforms with dozens of cryptocurrency trading pairs to choose from. Some even provide margin trading and detailed technical analysis graphs, but no passive income or lending/borrowing services. The polar opposite is Celsius. It has excellent lending, borrowing, and interest-earning activities, but it lacks its own cryptocurrency exchange. It has partnered with third-party exchanges that offer a total of ten cryptocurrencies for purchase and deposit. This is the most basic crypto exchange feature this reviewer has encountered.

Residents of the United States are not eligible for CEL token benefits.

CEL is Celsius’s own loyalty reward token. Users who convert deposits to CEL and pledge not to use them, thereby increasing the liquidity of the Celsius Network, receive numerous benefits. These advantages include significant savings on lending rates, higher-interest returns on pledged CEL, and a 2% loyalty bonus when combining CEL tokens with CelPay. These are valuable benefits that are not yet available to residents of the United States. There was no stated date on the website or mobile app for when CEL tokens might be available for purchase in the United States.

How Celsius Functions

The Celsius wallet app is straightforward and user-friendly. The website claims to operate in over 150 countries, but it is worth checking to see if your country fully supports the Celsius features. In the United States, for example, new users in the states of Washington and New York have been unable to purchase any assets through the app since July 2021. There was no explanation given for this change. Furthermore, the Celsius Network’s flagship loyalty-reward token, CEL, is not available for purchase by US residents.

To comply with Celsius’ KYC (know your customer) requirements, US residents must submit a Social Security number and a photo ID. After your identity has been verified, you must fund your account. This can be accomplished with a regular money automated clearing house (ACH) transfer from your bank. Alternatively, you can purchase any of the ten supported cryptocurrencies for direct deposit from two of Celsius’ partner trading exchanges.

Because Celsius lacks its own trading exchange, it has a very basic dashboard for tracking withdrawals, deposits, and earnings. That is all.

You can begin earning interest right away, with payments deposited directly into your account every Monday. Other financial solutions available through the app include crypto-backed loans, no-fee withdrawals, and direct payments to family and friends.

Celsius can provide you with a hassle-free loan. Simply enter your loan amount, desired interest rate, and payment schedule, and you are done. There are no credit requirements, closing costs, or background checks. Your crypto assets on deposit serve as collateral for the loan. A fantastic feature is that your coins remain in your wallet and continue to earn even while you pay back the loan. You do not have to liquidate any assets, and you can continue to accrue – a truly unique win-win banking scenario.

If you want to earn passive income, Celsius is the right choice for you. You are less concerned with cryptocurrency trading. You do not mind having more centralized control than other crypto platforms. You live outside of the United States, so you can get the best lending rates and rewards. You like the idea of being able to send and receive cryptocurrency funds directly from the Celsius wallet app.

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