Crypto Lending with Celsius Network

Keep my cryptos working with Celsius Network

Celsius Network is a network, where your cryptos are lent to others and you receive an interest income. Am I aware of your attention? Great, because this blogpost is not about earning money with crypto trading.

I want to tell you my own story about it and my experiences. I do not own loads of cryptos, but there are some in my wallet. So, let’s get started with my idea about earning interest income with those crypto coins.

Back in 2017, when everything started with crypto currencies

Some of you might know, that I was sometimes working as a ghostwriter. So, when I started in 2016 back then, I was connected to a guy. He wanted me to write a book about crypto currencies and the way it will affect the world as well as you are able to participate from it.

Bitcoin was one the first crypto currencies and is I guess the most popular one today. This network started in 2007 with the whitepaper from Satoshi Nakamoto. Nobody knows this guy as it is a fake name, but still the whitepaper is available.

We found a title, some headlines and I was left alone – which is usual in this job. I did a lot of research and somewhere in this book I should explain, how to buy crypto currencies. Therefore I checked several exchanges and paid a small amount of 200 Euro to one of it. You might remember the rise and fall and rise and fall and rise and fall of cryptos since then.

But here in Germany cryptos are marked as money and after one year of holding them you do not have to pay taxes on your “win”.

I nearly forgot about my 200 Euro…

I finished the book. The guy was happy and placed it on Amazon. Be sure, you will not find it, because it is published with an alias-name. I received what we agreed on before and I put some more into my wallet. In total it was 400 Euro.

As I mentioned cryptos performed “somehow” in the end 2017. In 2018 they got very popular an every damn newspaper was reporting about. Either it was the future and all bank will go bankrupt or it is the biggest scam – you were able to read any headline about it. Still today it is the same.

Due to this year of holding the cryptos I did not really care about my wallet. I did not even mentioned in my asset portfolio. But by the end of 2017 Bitcoin raised its value to nearly 20.000 US-Dollar. The whole crypto scene was awake and you were not able to make any losses, as everything was rising. As well as my wallet does. The highest value was about 2.700 Euro.

The big crash and the search for alternatives

In 2018 the Bitcoin crashed down to I think 3.000 US-Dollar again. The whole crypto scene crashed as well and of course my wallet did it the same way. I was just like “Well, the technique of the blockchain is what I believe in and as I diversified my initial 400 Euro among 15 different coins, I will just forget about it once again”. Maybe one of those coins will skyrock the next ten years.

During this period of time I was thinking about an alternative to get money out of my cryptos without selling them. Maybe I am wrong, but I believe in this blockchain-stuff. As I am convinced this will disrupt our world one day, I was willing to invest my amount into this technique. But how am I able to invest it without using blockchain anyhow?

Why not lent crypto currencies via P2P lending?

We all know how P2P lending is working. Why not do it the same way with crypto currencies?

After some months of not really caring about it, I found Celsius Network. It is an application, where you can transfer your cryptos to and they will pay you an interest rate. Depending on the market rates those interest rates are changing every week.

But in my eyes 2% to 6% are even better than no receiving any interest income.

What is the idea behind Celsius Nework?

Celsius Network says on their website: “The world needs banking, but it does not need banks”. That is quite a statement and I really like the disruptive idea behind it. I do not think we could live without banks, as many people will still use them. But being part of establishing the alternative is quite a nice thing to do for me.

You will find the business model from Celsius Network in this video. Their idea is to offer loans with crypto currencies to people or companies using the blockchain technology. No banking is need as the loan is paid the same way P2P lending is working.

For “investing” your cryptos you receive an interest income. This is of course paid in crypto currencies as well. In your web you are able to see the interest income in US-Dollar. But if you lent for example Bitcoin or Ripple to the Celsius Nework, you will of course be paid in Bitcoin or Ripple.

How does Celsius Network works for investors?

To use Celcius Network you have to have crypto currencies somewhere. As Celsius is just paying interest rates to some of them, you should check it. In my eyes you are able to invest easily, when you are holding the popular coins in your wallet.

As I was holding 15 coins back than, I was able to transfer 7 to the Celsius Network. Maybe you will not be able to get an interest income on any of your coins. Meanwhile I am able to transfer 12 of my coins to Celsius.

So, first of all you have to download their app. Celsius Network is just working with the app and has no desktop version as far as I know. But I also never invested time in researching about it, because I just wanted to place my cryptos there.

Transfer your cryptos to Celsius Network

At Celsius Network you have to register and get your own wallet. For any of those accepted coins you will get an address you are able to send the coins to. Once you have finished it, you are able to start. Therefore you just need to transfer your coins to the mentioned address in your Celsius Network wallet.

It looks damn easy and it is. I was always a bit scary about the transfer, as the responsibility is up to me. If I do something wrong for example the receiving address, there is not hotline to call and they will help you. Money will be gone by then.

Everything worked out as I was really concentrated while working on it. It took me about half an hour to transfer the coins and to doublecheck the transfer. Since then my coins are working for me. The interest rates are changing from week to week, but I do not really care. Whether it is 2% or 6% might be an difference, but as rates are volantile and everything is more than 0%, it is okay for me.

Celsius Network is not a model to earn money

There are several applications on the market of crypto lending. Sometimes you will for sure find better rates or special offers, which are better than the offered interest rate. That is okay for me. I do not invest any time in comparing offers or stuff like that.

I just want my coins work for me and I found a possibility to get interest income, while the blockchain technology might spread over the world. Whether I am on the right coins I do not know. And I guess I will not know within the next three to five years. But as a huge fan of diversification I think the chances have the right one in my wallet, is quite good with 15 coins. And maybe it is not only coin, but more who will succeed in future times.

Meanwhile they will pay an interest income to me. Currently it is very small, as my total invested sum in crypto currencies is not really huge. Therefore I do not make any payout, but reinvest everything. This might be a disadvantages as it is NO income yet. And everything will disappear as soon as the coins breaks down. But I am willing to take this risk, as it is just a small amount of my total portfolio.

Take a look around for chances like Celsius Network

Honestly, I really do not know what the market of crypto lending is about. I was happy to find out about Celsius Network as it is a chance for my coins to work on my financial freedom. I do not want to enter this market anyway and invest more into crypto coins.

For me it is mainly a chance to diversify a bit more with P2P lending. I mean, crypto lending is exactly the same as P2P lending, just based on other currencies. And of course on another technological basement. As I was researching for the book back than I was able to understand crypto currencies. I am not really into them, but I am able to understand how those things and companies are working.

If you like test Celsius Network for your, just follow this link and register for a try.

I think there are a lot of chances every day to improve your performance. I do care about my money and as I am on my way to financial freedom I would take any chance to improve the performance of my portfolio.

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