Celsius offers a way to receive dollars without having to cash out crypto holdings to take out a loan. Their native token, CEL is used for making payments, taking loans, and providing rewards. But, the question arises does Celsius have insurance policy? Or Whether there is any insurance policy for the crypto holding that we own? Don’t worry! You will get your answer right here. In this article, you will get your answer does Celsius have insurance for crypto holdings? So, let’s jump into it.
What is Celsius Network?
This cryptocurrency lending platform is built on the blockchain. Currently, it is the leader in this field, having started offering services in 2017. Celsius Network provides various financial services through its crypto lending platform.
Its main characteristics are that it offers Bitcoin loans at the lowest rates. Moreover, the platform has its own cryptocurrency token (CEL), which we will discuss in more detail in the following paragraphs.
The platform and CEL tokens have witnessed a phenomenal rise since 2018. It was founded by Daniel John, Alex Mashinsky, and Nuke Goldstein, who operate the platform from London, UK. By 2020, nearly $100 million will have been raised for this platform.
As a result, Celsius hopes to attract users by offering high returns on deposits while maintaining the convenience of fee-free transactions, which is evident in traditional outlets.
In addition, Celsius provides a way for crypto investors to access dollars without selling off their crypto holdings. But does Celsius have insurance policy for your crypto investment? Well, to know that, make sure to read the guide until the end.
How Does Celsius Network Work?
It facilitates peer-to-peer lending of cryptocurrencies through Celsius Network. The crypto is put up as collateral, and the borrower pays minimal interest in order to quickly gain access to fiat funds. There are four ways the Celsius Network works:
- Lenders – Account holders who earn interest on their deposits.
- Borrowers – Traders who desire to leverage their short and long positions.
- Celsius Platform – Provides trade facilitation, risk management, and fee determination services.
- External exchange markets – Coordinates trades, loans, and liquidity provision.
But, the one question that is still in our mind is, does Celsius have insurance for the crypto investment?
How to Use Celsius Network App?
Visit the Google Play store to download the Celsius app. For Android and iOS, you can download the Celsius Network mobile app for free, which is sleek, easy to use, and available on both platforms.
- Sign up for an account.
- You need to verify your identity.
- Invest in crypto.
Android and iOS users can both download it. The app can be downloaded for a bonus from the respective store for crypto traders.
Is My Money Safe, or Does Celsius Have Any Insurance for Our Holdings?
No FDIC or SIPC insurance is provided for Celsius deposits. In the United Kingdom, the national government regulates deposits, as opposed to the federal government in the United States.
There is no way to know for sure whether Celsius lends your cryptocurrency to institutional investors. Cryptocurrency deposits with Celsius come with a risk. Withdrawals on Celsius’s accounts have been paused as of June 2022 – and reports suggest they do not have enough assets to pay out. Depositors face a serious risk here.
It is also important to mention crypto key security briefly. Celsius’s partner custodian Fireblocks holds all funds deposited with Celsius. So, in addition to protecting your private keys from loss or theft, Fireblocks also offers custody insurance.
Does Celsius Have Insurance Policy?
As far as we know, Celsius doesn’t have any insurance policies. Insuring digital assets held by Celsius is provided by Fireblocks and Custodian. Asset deployment, however, generates interest rewards. Therefore, these assets cannot be insured by such insurance when they are out of Celsius’s control.
They conduct thorough due diligence reviews of borrowers’ financials and repayment ability to ensure coin loans are always repaid to Celsius, so they require borrowers to post collateral of up to 150% (meaning they give Celsius an alternative asset as collateral) or post collateral of up to 150%.
Can We Get a Self Insurance in Celsius?
The co-founder of Celsius Network announced on Twitter that he would be offering coin self-insurance in the coming months. The Celsius Network is equipped with insurance for Hot wallets as it uses MPC via Fireblocks, its custodian.
Institutions and exchanges will be insured for coins lent out. In addition, they guarantee that no other company has such an insurance today. As a result of Celsius’ unique business model, trading crypto carries a lower risk. There is a $100 insurance limit on all deposits.
How Do I Contact Celsius?
A Care Center has been opened by Celsius in Las Vegas. Call 1-866-463-5669 from 8:00 AM to 11:00 PM (EST) Monday – Friday to talk to a human being over the phone. Send them a support ticket 24 hours a day, 7 days a week.
Over 1,500 reviews have been written about Celsius Network on Trustpilot, which has a respectable rating of 4.1/5 as of September 2021. Unfortunately, the Better Business Bureau (BBB) does not rate it or have any reviews.
So, as we have stated that Celsius does not have any insurance policy for the crypto holding you have on their platform. Therefore, we hope that you find the answer to does Celsius have insurance policy.
So, that’s it from our side. We hope that you find this article helpful. But, in case you want to ask any questions, comment below and let us know.