How to Buy Celsius (CEL) - a Beginner’s Guide

Payment Methods You Can Use to Buy Celsius

You can use a variety of various payment methods to top up your exchange or brokerage account. Some exchanges and brokerages accept payment methods that aren’t available on other platforms. Here’s a quick summary of the most popular payment methods used on online trading platforms.

• PayPal: One of the most renowned and easy to get started with payment methods on the internet. Unfortunately, most trading platforms won’t accept PayPal deposits or withdrawals.
• Bank transfer: Transferring funds from your bank is one of the easiest ways to fund your trading account. Remember that bank transfers will take a couple of working days to process. In addition, some banks block transfers to exchanges so you may need to contact your bank to ensure your deposit gets through.
• Debit or credit card: Using your debit or credit card to top up your trading account is usually quick and easy. Just be aware that there’s always a small fee that comes with using your credit/debit card on exchanges and brokerages.
• Crypto: If you already have some crypto then swapping your current holdings for Celsius will be a walk in the park. Exchanges and brokerages will always take a small trading fee when exchanging one crypto for another.

Buying Versus Trading Celsius

Buying assets is best done during downtrends in the market or during “dips” when you’ll be able to get a more reliable entry point than buying in a rally.

Trading involves buying and selling assets frequently, or using financial derivates, often with leverage, to generate a profit. Trading tends to be fast-paced to keep up with the changing markets. Buying and holding onto an asset is considered less risky than trading. That said, experienced traders can make substantial profits buying lows and selling highs in shorter time frames. 

Perhaps the safest way to invest in any market is to dollar cost average, which means buying small amounts of CEL at regular intervals over weeks, months and even years. This strategy smooths natural volatility and is something that most seasoned traders do.

What to Consider Before Buying Celsius

Before investing in any project, you should understand what that project aims to achieve.

Celsius is a cryptocurrency lending platform that is regulated and SEC complaint. Users who deposit funds can get suitable yields on their holdings, more interest than any bank could offer on fiat currency. All deposits are fee-less, unlike other DeFi lending platforms that require users to pay for Ethereum gas fees to interact with the platform.

After delegating funds into the lending platform, users can borrow fiat against their cryptocurrency holdings. The Celsius network tries to maintain generous yields to keep users coming to the platform. Celsius’s CEL token can be staked to gain rewards, used to secure a discount on loan repayments, or deposited in the lending platform for greater yield benefits.

What Features Does Celsius Have?

• Celsius Loyalty tiers:  Depending on the amount of CEL tokens that a user holds on the network, they’re able to jump through bronze, silver, gold or platinum loyalty schemes that provide extra rewards for delegators and loan interest discounts.
• CelPay: An application exclusive to Celsius users that allows fast and free peer-to-peer payments. Use it to send your crypto plus a personalised note to any other user signed up to Celsius.
• Celsius credit card: With the Celsius credit card, users can earn rewards based on their credit card spending. There are no fees when spending money abroad, no late payment fees or ATM fees, and credit can be topped up using fiat or crypto. Although it’s yet to be released, Celsius users can join the whitelist.

Will Buying Celsius Make Me Money?

There are no guarantees that buying CEL will make you money. The main thing to consider when buying cryptocurrency is the ecosystem underpinning it. As Celsius has plenty of utility, plus high adoption with a strong community, the likelihood of price appreciation is higher than with, say, a meme coin. 

In addition, Celsius has a bold road map with an experienced team to help execute it. The Celsius credit card launch will also give the company further momentum. The card promises users they will earn when they use it and earn when they don’t. This real-world utility for people who hold crypto rather than fiat currencies in their accounts is relatively new to the world of crypto, and Celsius is one of just a few first movers in the space.

The coin also has little direct competition. There are other lending platforms such as AAVE, Compound and MakerDAO, but these are pure DeFi and lack regulatory status. This means, if something goes wrong, there’s nobody to call for help. Celsius, being a sort of DeFi-CeFi hybrid, however, can provide many of the fiscal benefits of DeFi while also delivering a high level of customer support. The closest comparable to Celsius within the market is Nexo.

Should I Buy Celsius?

Below is a list of pros and cons to help you decide whether or not Celsius (CEL) is the right coin for you. 

Pros

• Generous yields for deposited funds when compared to banks and other traditional finance lending schemes.
• The CelPay application is useful for sending cryptocurrency to other users without having to pay extra fees. You don’t have to use the lending platform to use CelPay and anybody can sign up for it.
• Users gain many benefits, such as loan discounts, for holding or staking their CEL. The rewards incentivise investors to keep their tokens instead of selling or swapping them. This so-called HODLing restricts supply and can help drive the price of CEL higher.

Cons

• Yields for other cryptocurrencies that are not CEL are generally low.
• The Celsius platform is centralised, and users are not able to generate their own wallet keys. UK residents are able to buy CEL on exchanges but are not able to use Celsius’ services due to regulatory restrictions.

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