If you are a Celsius network user, you should have gotten this email regarding the changes that will be in effect on April 15th. In this video, I’m going to be going over everything that you need to know along with how I plan on moving forward, so if that sounds interesting, definitely stick around.
If you’re interested in signing up, I do have a referral link down below. If you do use my code and deposit $400 worth of crypto, it can be bitcoin, ethereum, or stable coins. It is completely up to you. You can get up to a $50 bonus in bitcoin, which is an automatic 12.5% return on your investment.
If this video is a little bit time-sensitive, I wish they’d let us know like a week or two weeks beforehand, but they let us know three days before. So if you’re watching this before April 15th, at least you’ll have a day or two to decide what you want to do moving forward, and if you’re watching this after April 15th, then you’ll have an idea of what you can and cannot do.
If you’re unfamiliar with the Celsius network, it’s pretty much a platform where you’re able to deposit your cryptocurrency in, and you’re able to earn interest on it. You can borrow against your cryptocurrency and lend it out, but it’s an amazing platform that’s been extremely successful since they established in 2018. They have 22.8 billion dollars in assets, 1.7 million Celsius users, and have paid out a total of 904 million dollars since they have started.
Right now we are in my Celsius account. So far, I’ve earned a total of $3,500 in cryptocurrency. I am earning around 4% on my cardano, 7.25% on my polygon, 5% on my bitcoin, and around 5.35% on my ethereum. Every single week, Celsius pays you out, and you are able to earn more interest on top what you make.
Recently, Celsius came out with an email regarding all the changes that will be in effect starting April 15th. Here is the email. You can pause the video to read through it, but I’m going to quickly summarize what you need to know.
If you deposit crypto into your Celsius account before April 15th, you will be able to earn interest on your crypto even after April 15th. If you deposit any crypto after April 15th, it will be deposited into a custody account and you will no longer be able to earn any interest on your crypto, unless you are an accredited investor. You can google what that means or what it takes to be one, but to keep it very simple, you have to have a very-very high income, single or joint, and a net worth of a million dollars. So if you’ve ever wanted to earn interest on your crypto and wanted to start a celsius account, well, now it’s probably going to be the best time before April 15th.
If you have any loans open in your Celsius account like myself – i’m gonna go to the bottom right corner click on borrow – you can see that I have several active loans open, so I’m going to click on loan details. Once I pay this loan back, this could be in one month, two months, one year, or two years, my cardano is actually going to be moved to my earn account and I will continue to earn interest on this amount of cardano. So that’s pretty much a good thing if you do have an existing loan open once you close it out. Your crypto will be moved to your earning account and you’ll continue to earn interest on your crypto even after April 15th.
If you’re watching this after April 15th and you wanted to use your crypto as collateral to pull out a loan, well, you are still able to do that through your custody account. I don’t know what that looks like yet, but it will be released on April 15th.
Now there’s a second email that Celsius sent out for anyone that has any open loans. If I’m reading this correctly, which I think I am, if I’m wrong, let me know in the comment section down below, but if you want to pull out a new loan out starting April 15th, you’re going to have to do it from your custody account and not your earn account.
Right now in the Celsius app it says coins and available coins. I’m going to assume that they’re going to make three tabs: earn accounts, available coins, and maybe custody account, so right now I have about $66,000 right worth of cardona in my account. If I wanted to use my ADA as collateral to pull a loan out, I’m going to have to transfer my cardano into my custody account. The thing with that is that I’m no longer going to be able to earn interest through my cardano. If I make that decision, then that transaction will be irreversible, meaning that I’m no longer going to be able to move my cardona from my custody account back to my earning account, which means that I will no longer be able to earn interest on my card. If you ever want to pull a loan out, make sure you think it through and decide you want to move your crypto out of your earning account to pull out a loan. It really depends on your strategy and your plans. There is no right or wrong; it just really depends on your personal situation. Those are the main changes that you need to be aware of moving forward if you are a Celsius user or thinking about becoming one.
Now, what do I think about all of this? Well, it was sort of unavoidable, right? You could see that block fight getting hit first. Then you saw NEXO and you knew it was just a matter of time before Celsius got hit if you run a lending type platform where you’re able to earn interest on your crypto as in the United States. They’re very strict with regulations and you have to sort of comply, so it’s completely understandable. If anything, those of us that got in early, it was such an opportunity to be able to earn interest through our crypto.
As of right now, I don’t have any plans on withdrawing any funds out of my account. I’m going to continue to earn interest on them. One thing I have to check is that I believe once you start getting paid out after April 15th, your rewards are going to be automatically deposited into your custody account, which is now your earning account, so the compound effect is no longer going to be in play with Celsius. I have to see after April 15th. I think that’s what it’s going to be like. I mean, my personal strategy with interest-bearing accounts is to just park my crypto and earn interest passively while I wait until the market gets overextended or overbought. You’re not going to make a ton of money, right, on a four to seven percent interest rate instead of what you’re going to make the most money on is by buying low and selling high after you make a 20, 30, 50 gain. So I’m just keeping my crypto part earning interest passively and then when it’s time to sell, I’m going to be selling.
I also recently upgraded to my Icy White with Krypto.com. It’s pretty awesome, right? I’m earning 12.5% on my Polkadot and Polygon plus an additional two percent through CRO, so that’s about 14.5%. I do have my cryptos spread across multiple different places earning different interest rates because I don’t ever want to be at the mercy of one specific company or account.
Now to close this video out, I’m going to be depositing some ethereum into my account. Right now, I’m inside my FTX account. I have about $500 and about 1.68 ethereum. I’m going to click on “Trade”. I’m going to buy the max amount that I can, scroll down and click on “Buy”. My ethereum order has been filled. Now, if you’ve never used FTX, I highly encourage you to try them out. They have extremely low fees. I have a referral link down below. Save on your trading fees, especially if you buy a ton of crypto on a regular basis.
I’m going to click on “Withdraw”, “Ethereum” and the “Max” amount and then I’m going to go back to my Celsius account, click on “Ethereum”, “Receive”, “Understand”, “Copy” the address, go back to my FTX account, paste the address in there, you’re going to enter your 2FA and withdraw a password, click on “Withdraw” and the withdrawal has been successful. It should take a few minutes to arrive and once it has arrived, I should automatically start earning interest without doing anything