UPDATE 23 November 2021: Celsius is still one of the biggest cryptocurrencies with the highest potential on the market. Celsius ( CEL ) till now has different partnerships. The price prediction for CELSIUS 2021 is that still can hit x10 within the current price from November.
With the emergence of cryptocurrencies, many real-world services have been utilized in the sense of decentralization, all thanks to blockchain technology. While the initial service provided from cryptocurrencies like Bitcoin (BTC) was transactions, the creation of Ethereum has made services like exchanging, gaming, voting, and finance possible through its ERC-20 tokens. Decentralized Finance (DeFi) has been one of the most successful uses of cryptocurrencies in recent times. Some cryptocurrencies are devoted to providing solutions to many traditional financial services such as lending or borrowing, which prioritize the interest of the banks instead of the clients. Such a cryptocurrency is Celsius (CEL).
Celsius is one of those cryptocurrencies that disrupt the whole market due to its innovations. With the focus of becoming one of the best lending-borrowing systems that put the clients on the pedestal, Celsius has been getting a lot of attention. While Celsius services can be lucrative on their own, trading CEL tokens can be a neat way of making a profit. But before investing in a cryptocurrency such as Celsius, there are a lot of variables that you need to consider. Such variables are its background, purpose, functionality, price patterns, price factors, and many more. Let’s begin with defining Celsius as a cryptocurrency.
What is Celsius (CEL)?
Celsius is one of the best cryptocurrencies that provide all the banking and financial services much more efficiently than centralized methods. The project aspires to provide “financial freedom” to its users. Through Celsius, users can deposit, borrow, lend, or use their cryptocurrencies in any sort of way with better interest rates.
Celsius was founded by Alex Mashinsky and Daniel Leon as a project in 2017. The former worked on the Voice Over Internet Protocol (VOIP) in the ‘90s, while the latter as an app developer. It is safe to say that the expertise for launching such a sophisticated project like Celsius was sufficient.
To secure the funds for developing the Celsius project, CEL held an initial coin offering (ICO). the ICO of May 2018 involved the sale of 50% of the Celsius total supply.
The main purpose of the Celsius project is to compete with banks and other traditional financial institutions. The way that Celsius plans to achieve this is by giving much better interest rates for both loaning and borrowing, larger rates for saving and depositing, as well as much easier access to such services. While the procedures for taking a loan in a bank are complicated and may take a long time, Celsius provides automated systems that are completed in a much shorter time. Many hedge fund entities use Celsius to obtain larger loans at a quicker time.
Celsius is not a non-profit project, however. To ensure that the project is continually funded and updated, every service in the Celsius network requires an additional fee.
Celsius (CEL) Price Analysis
As understood, the native token of Celsius is CEL. CEL tokens serve as ERC-20 tokens in the Ethereum network. The maximum supply of Celsius is around 700 million CEL. As of May 2021, around 240 million CEL are in circulation.
When Celsius was first launched in 2018, the price of CEL was around $0.06. The price exceeded $0.1 for the first time in May of 2019. CEL had its first noticeable bullish run in 2020. In January of that year, the price of CEL was around $0.15, while by December, the price had reached $5.4. That was around a 3500% increase within a year. In 2021, the price kept increasing at the same rate, reaching a new high of $7.95 in April. As of May 21, 2021, the price of CEL is around $6.3. With this price and with a circulating supply of around 240 million CEL, the market cap of CEL is around $1.5 billion, while the fully diluted market cap is around $4.4 billion. This market cap places Celsius as the 66th biggest cryptocurrency in the market cap rankings. This market cap also indicates that Celsius is still a small-cap cryptocurrency. Small-cap cryptocurrencies have the biggest potential to grow.
How Does Celsius (CEL) Work?
Celsius uses Proof-of-Stake (PoS) as a consensus mechanism. In PoS mechanisms, mining rewards are usually based on the number of tokens you stake. The more you stake, the higher the chance of being rewarded with free tokens.
With CEL tokens, you can complete transactions, stake or lend your tokens to receive interest rates (up to 30%), and borrow tokens to pay with interest rates (up to 30%).
The interest rates for loans vary on the amount of money you put as collateral, loan maturity, loan size, etc. The minimum amount you can borrow is $500. The interest rate can come as low as a 0.7% annual percentage rate, which is considerably much lower than what banks have to offer.
Celsius also uses CelPay, which is a payment application used to complete the transactions within the Celsius network. CelPay is very easy to use and does not require additional fees for token transfers.
What makes Celsius unique is the way its network is organized. The Celsius Network involves several loyalty tiers that categorize the bonus rewards of staking CEL tokens.
Celsius Network Explained
Four tiers make up the Celsius network.
Bronze Tier
Users in this tier have a portfolio that consists of 5-10% of CEL tokens. Users of the bronze tier receive 5% bonus rewards for staking and interest payments and a 5% loan interest discount.
Silver Tier
Users in this tier have a portfolio that consists of 10-15% of CEL tokens. These users are entitled to have 10% bonus rewards as well as 10% loan interest discounts.
Gold Tier
Gold tier users need to have 15-20% CEL tokens in their portfolio. The bonus rewards for these users are 20%, including a 20% discount on loan interest.
Platinum Tier
Lastly, users that hold 20-100% of their portfolio in CEL tokens are categorized as Platinum. These users have 30% bonus rewards, with 30% loan interest discounts included as well.
A 30% reward for staking your tokens is simply a huge profit-making method when you compare the earning rate you have using banks.
Is Celsius Network Safe?
While Celsius Network has proven to be safe in general terms, some concerns come with this intriguing network. Whenever you use a service in the Celsius Network, a custodial is required. The custodial is responsible for the functionality of these services. Since the keys are not fully controlled by you, hackers can find a way and access your private keys. Consequently, the hacker may transfer your tokens to his/her address.
On the other hand, if you could have trusted a bank to take care of your assets, you should also be able to trust a custodial to take care of the services that this network provides. It is worth noting that the Celsius Network is continually working to become one of the most trustworthy networks for financial services. Doing so can revolutionize the world of finance once and for all.
Celsius (CEL) Price Prediction 2021
Digitalcoinprice predicts that the price of CEL can reach new highs in 2021. While the price of CEL can fluctuate in the following months, it is predicted that the price of CEL can exceed $9 by the end of the year if not sooner.
Walletinvestor also forecasts an increase in the price of CEL, despite the bearish tendency of the crypto market as of right now. The price of CEL is predicted to range from a minimum of $6.7 in June, to a maximum of $13.7 in December. So even if other cryptocurrencies are facing quite some challenges, Celsius can reach $10 this year for the first time in its history.
On the other hand, experts like Tradingbeasts predict that the price of CEL can slightly decrease in the following months. While the maximum price might not exceed the current price record of CEL, the average price might be as low as $5.8 in the next few months, which can steadily increase to $6.3 by December.
But there are others that have a much more optimistic approach to the future price of CEL. The Celsius Network themselves give an analysis of the price of CEL and have estimated that the price of CEL can exceed $100 by the end of the year. The reasons for this soaring price might be the number of active users in the Celsius network, the prices of other cryptocurrencies, supply & demand for crypto securities lending (high-yield interest rates), and security & operational risks.
Celsius (CEL) Price Prediction 2023, 2025, 2030
But what about the long-term price of CEL?
Digitalcoinprice suggests that by 2023, the average price of CEL can range from $11.7to $15.2. By 2025, the average price of CEL can range from $16 to around $22, surpassing the $20 mark for the first time. Since Digitalcoinprice predicts that the price of CEL can be around $29 in 2028, going at the same rhythm might see Celsius surpassing at least $30 by 2030.
Walletinvestor also predicts larger increases in the price of CEL, as the price might range from around $20 to around $37 in 2023. In 2025, even higher prices might occur to Celsius, presumable due to the Bitcoin halving of 2024. The price might range from $32 to $62.
Similar to Digitalcoinprice, Coinpriceforecast also predicts slight increases in the price of CEL in the following years. The price might be around $24 by the end of 2023. As for the end of 2025, the price can be around $27. Last but not least, the price of CEL in 2030 can be around $30.
How to Buy Celsius (CEL)?
To buy CEL tokens, you need to open an account in a cryptocurrency exchange that supports Celsius Network. Some of the best exchanges that support CEL are OKEX. Bitfinex, Liquid, Coinswitch, etc.
Then, you need to deposit funds in your new exchange account. To do so, you can use payment methods such as credit or debit cards. After you do that, you can pay with those funds to buy as much CEL as you want.
It is unwise to leave your CEL tokens in your exchange account. As such, it is of utmost importance that you use a safe cryptocurrency wallet for CEL tokens. Also, whenever you are not actively using the Celsius network for financial services, you can store your CEL tokens in a cold wallet so that your private keys are invulnerable to online threats. Such a wallet can be Ledger or Trezor.
Also Read: Celsius Price Prediction August 2021: CEL Bearish If It Does Not Find Support
Is Celsius Coin a Good Investment?
Overall, Celsius (CEL) is a very good investment, and the Celsius network is one of the best networks when it comes to financial services. There are lots of reasons that make Celsius a good investment. Here are some of them:
Supply
Since Celsius has a limited supply, its price has deflationary properties, meaning that the price can increase as the supply decreases. This suggests that the price of CEL can increase in the long run.
Interactive Team
Celsius has one of the best teams when it comes to engaging with the audience. They continually communicate with the community so that they achieve the best possible relationship.
Application
Real-world applications of the CEL tokens are one of the biggest reasons why this cryptocurrency has become one of the best in the business. Through its efficient and profitable interest rates, Celsius is slowly becoming a serious competitor to traditional financial institutions such as banks.
Takeaways
- Celsius (CEL) is a cryptocurrency that offers DeFi services in its network.
- The Celsius Network is categorized into bronze, silver, gold, and platinum tiers, respectively. Depending on the amount of CEL you hold on your portfolio, you can earn different bonus rewards from staking CEL tokens
- The CEL token is an ERC-20 token, and its price has been increasing over the last few months.
- The price of CEL is predicted to increase in both the short and the long run.
- Celsius can be purchased through cryptocurrency exchanges and must be stored in safe wallets.
- Overall, Celsius is a good investment.