When you're new to cryptos, just about any exchange will do. Particularly those with easy-to-use interfaces and superior customer services. Over time, however, other considerations will take precedent.
Among these is maximizing how much yield you receive on cryptocurrencies. After all, the whole reason you started dabbling in cryptos was to make money. Right?
For example, both Celsius Network and Crypto.com provide crypto services to a broad customer base. But which one offers the best yields over time?
The answer to this question depends on a variety of factors, from the coins you use to how long you're willing to lock up your assets.
With that in mind, let's dive into a detailed exploration of both platforms' differences and similarities. That way, you'll know without a doubt which one's best for you.
About Celsius Network
Founded in 2017 by Daniel Mashinsky and Daniel Leon, Celsius Network is a peer-to-peer lending platform headquartered in the United Kingdom. Its mission remains, becoming the bank for the 99 percent.
It plans to achieve this by making banking decisions for the greater good rather than for a few "fat cats" at the top of the company's hierarchy.
The platform provides a payment processing function, enabling consumers to send and receive cryptos in multiple ways. These ways include via a link, text, or your Celsius Network CelPay account.
The site doesn't require a minimum deposit amount. This feature allows customers to earn interest whether they're working with $5 or $5 million. Celsius Network maintains the right to margin calls on its platform.
In the spring of 2018, the company launched its native coin, CEL. They hosted an Initial Coin Offering (ICO). Today, Celsius Network offers a program where customers can earn bonus interest on their accounts.
The program also facilitates lower interest when taking out a loan and prioritized loan approval.
How do you take advantage of this program? By HODLing (holding your assets) primarily in the platform's native token, CEL. Find out more about Celsius Network's CEL token.
In 2020, the Celsius Network enjoyed massive growth, expanding to a billion-dollar share of crypto deposits. The company generated more than $8 billion in loans alone. What's more, the company's customer base climbed to more than 100,000 users, reaching profitability early in the year.
Crypto.com has earned a reputation for bringing cryptocurrency into the mainstream. How? By offering an easy-to-use platform that makes trading, earning, borrowing, and paying in crypto a cinch.
Among its most robust points is the fact you can handle the vast majority of your crypto needs all in one spot. The company offers the MCO Visa card, accompanied by a hard-to-beat five percent cashback. Customers receive this cashback in cryptos.
In terms of its payment cards, customers may choose from five tiers. Each one is backed by Visa and comes with rewards. The company incentivizes the use of these cards with MCO tokens on every purchase.
How do these cashback rewards compare to more traditional cards? They remain highly competitive with higher tier cards rewarding upwards of three percent cashback. That said, you'll need to stake at least $2,500 to reach these rewards.
Besides payment cards, Crypto.com also offers a wide selection of other services, including:
- Mobile app
- Credit lines
- Payment processing
Besides facilitating all of these activities, Crypto.com has two native tokens, the MCO (formerly Monaco) and the Crypto.com Coin or CRO. Both of these tokens maintain high rankings on CoinMarketCap in terms of market capitalization.
Crypto.com offers a handy app, permitting customers to manage their accounts on the go.
Celsius Network vs. Crypto.com: Safety and Security
Of the two platforms, which one proves safer? We've found that both platforms are trustworthy. Each one boasts good backing and security procedures.
That said, there's no denying Celsius Network has gone the extra mile. It has a partnership with BitGo that ensures crypto deposits for up to $100 million. Celsius relies on hot and cold wallet solutions from BitGo as well as another firm, Prime Trust.
The crypto giant also collaborates with the security firm Fireblocks to secure all lending activities. That means all hot wallets will now be secured with this additional layer of security.
Where does Crypto.com fit into this? The company also boasts excellent backing. Nevertheless, you could make the argument that Celsius Network operates a more straightforward, safer business model than Crypto.com does.
Of course, when it's all said and done, you should feel comfortable investing with either of these platforms. After all, they've both done their security homework. However, in the unlikely case of a market collapse, Crypto.com funds would prove more vulnerable than Celsius Network's.
Celsius Network vs. Crypto.com: Finding the Best Yields
Now, we come to the moment you've all been waiting for. Which platform offers better yields? Without a doubt, the prize goes to Celsius Network.
Crypto.com doesn't even come close unless you're willing to stake 10,000+ CRO. You'll also need to take advantage of its three-month term schedules. That said, Crypto.com's rates under these conditions are no better than those of Celsius Network.
So, it makes more sense to opt for Celsius. That way, you can avoid the lock-in term mentioned above. After all, there's a level of value and priceless convenience to withdrawing funds at any time without a fee or penalty.
There's only one case where you'll get a better deal with Crypto.com. If you feel comfortable transacting entirely in the site's native token, CRO, you'll receive a greater yield. The trade-off remains a loss of control over your coins and your preferred currency type.
Is that worth it to some customers? Perhaps. But most customers will enjoy the best deals on yields by sticking with Celsius Network.
Celsius Network vs. Crypto.com: Signup Bonus Deals
What about each platform's signup bonus deals? Is there a clear winner? Absolutely!
Celsius Network takes the cake in this category, too. Why? They don't require you to purchase and lock up native tokens for months on end to access their bonus, for starters. The same can't be said for Crypto.com.
On the plus side, both bonuses prove relatively easy to access. You'll need to stake $50+ in cryptos to get started.
Pros and cons of Celsius Network
- No Minimum Deposits or Balance
- No fees
- Competitive interest rates, particularly on Stablecoins
- Fee-free, instant payments via CELPay
- Weekly Rewards. Each Monday, you'll earn interest.
- Large variety of supported cryptocurrencies
- You can two options for earning your crypto interest. You can either earn the same coin as you had deposited or earn in CEL, Celsius' native coin. Earning is CEL will earn an additional 5-30% interest.
- No web app
- Need to be paid in native currency in order to earn higher interest rates
- Know Your Customer (KYC) is required if you're looking to earn interest. This means you'll need to submit your ID and SSN.
- Interest rates can fluctuate quite a lot
- You'll only be able to use one withdrawal address for each crypto. If you wish to change, there will a 24-hour hold on your account.
- United States users will not be able to take advantage of earning in CEL.
Pros and cons of Crypto.com
- Is a complete crypto platform
- Offers frequent promotions
- Permits you to earn returns on your deposits
- Includes a high-speed exchange with competitive fees
- Offers a crypto-backed rewards card
- High-speed exchange with competitive fees
- Having to stake CRO or MCO to get the most out of your MCO rewards
- A general lack of transparency regarding where funds come from
- A confusing two token system (e.g., CRO and MCO)
Compare with Celsius Network and Crypto.com alternatives
Similar Savings Accounts and Loans
Celsius Network vs. Crypto.com: The Takeaway
Which platform should you choose for your crypto needs? That ultimately depends on your goals and unique financial situation.
Overall, Celsius Network offers better interest rates. It also has lower fees for both crypto-backed withdrawals and loans. Celsius also remains slightly superior when it comes to the categories of capitalization and safety.
If the idea of keeping large amounts of cryptocurrency on a platform makes you sweat bullets, we suggest going with Celsius Network for greater peace of mind. Celsius Network also offers an easier-to-access signup bonus.
What about other factors, such as customer service? Interactions with Celsius Network's customer service representatives prove superior in terms of fast, personalized engagement.
Since Crypto.com’s leading service remains debit cards, instead of staking and loans, they have different priorities. Crypto.com also has more customers to serve than Celsius Network, but the difference is worth mentioning.
Why might some customers prefer Crypto.com? It represents an all-in-one cryptocurrency exchange. That means you can handle all of your staking, lending, and loan platform needs in one spot.
If you're after a one-stop-crypto-shop, Crypto.com is hard to beat. We recommend their services for people who don't feel confident buying on a different exchange and then transferring into Celsius’s platform.
Crypto.com also provides better interest rates on their native token CRO. And you'll find their crypto exchange platform to be superior, with lower fees and more cryptocurrency support.
Celsius Network doesn’t have an exchange. Instead, the company outsources this service.
Making Money in Cryptocurrency
As you can see, both Celsius Network and Crypto.com offer convenient service options for those interested in investing (or expanding their investments) in the crypto world. But when it comes down to the numbers, Celsius Network has Crypto.com beat on yields.
You'll also find Celsius Network's stipulations on their bonus signup deal to be far more flexible and appealing. But for customers who prize the ability to complete all crypto functions in one space, there's no denying the allure of Crypto.com.
Just know you'll need to deal in their native coin, CRO, and be willing to accept time-stamped contracts to access yield rates comparable to those of Celsius Network.
Are you interested in learning more about how to make money in cryptocurrency?
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