How to buy Celsius online
This beginner’s guide introduces you to Celsius and the mechanics behind the platform. If you’re looking to learn more about its CEL token and find somewhere to buy it, we can help with that too.
Compare where to buy Celsius, and open an account
You can buy coins straight away with any one of the brokers below. We’ve put together a list based on thorough analysis from our team of experts that can help you choose the best one. If you want more information before you buy, read on to get it.
What is Celsius?
Celsius is a cryptocurrency lending platform available to anyone with a mobile phone. It offers banking services like loans and savings accounts to individual users, and lends coins to big institutions looking to get a foothold in cryptocurrency. Its CEL token is like a rewards scheme, offering better rates of interest to those who hold it.
One of the big selling points of many decentralised finance platforms is that you can still use your coins even as they’re deposited to earn interest. Celsius is no different, and even expands that to offer loans in USD if you post enough crypto coins as collateral.
Celsius has been around since 2017, although it hasn’t all been plain sailing. It’s not always been clear about what it does with the deposits made on the platform, particularly about how much risk they take on to reinvest it and make money. Regardless, it’s distributed more than $8bn worth of loans so far.
How does Celsius work?
Celsius works by requiring all loans made through its platform to be ‘overcollateralised’. That means you have to post more collateral than the value of your loan. Celsius takes that deposit and reinvests it, earning interest which then allows them to pay such high rewards to people who use the platform.
This is where questions about those investments have come in. If they are particularly risky, then the entire platform is vulnerable to external forces like a collapse in the value of another cryptocurrency. Celsius has consistently denied they are exposed like that, but it is worth researching if you plan to use its services.
How to buy Celsius online – a step-by-step guide
Step 1. Find an exchange to buy Celsius
If you want to own a coin outright, an exchange is the best place to go. Exchanges can vary in the service they offer, particularly in terms of the range of coins available and the fees for withdrawing them, but the best bet is to pick a popular one with a good reputation. A couple of our favourite ones are:
- Binance: Binance is one of the most widely-used exchanges around. It offers a huge variety of coins and hundreds more pairs you can use to buy them. Sign up for Binance now >
- BitMEX: BitMex lets you buy cryptocurrency using Bitcoin and offers an intuitive platform as well as an integrated wallet you can use to store your coins. Join BitMEX today >
Step 2. Sign up and fund your account
Before you can start trading, you have to create an account. You’ll be asked to provide contact details and might be asked for a copy of photo ID for verification. Many exchanges now accept deposits in fiat currency (like GBP or EUR), but you may find some that only accept cryptocurrency.
Step 3. Buy Celsius
To buy any coin you need to search for its ticker symbol, which is CEL here, and then select the right pairing. If you’re using Bitcoin to buy it, for example, then look for the CEL/BTC pair and execute the trade.
Step 4. (Optional) Get a suitable wallet
Now that you have your coins, it’s time to find a place to store them. In an exchange account is a perfectly acceptable place, but if you want more security then a wallet is the ideal solution. Wallets keep your coins so they can only be accessed via a private key that’s unique to you. Some of our favourites are:
- Guarda Wallet: Guarda is an online wallet you can access through your desktop, web browser, or an app. It integrates with an exchange too, so you can buy and sell coins direct from your wallet. Get Guarda Wallet now >
- KeepKey: KeepKey is a hardware wallet that stores your coins on a USB-like device. The coins are kept in cold storage, completely safe and separate from an internet connection even if you connect it to an infected computer. Sign up for KeepKey >
How to trade Celsius – a step-by-step guide
Step 1. Find a broker
If you’re going to trade a coin, you want a broker that charges low (or no) trading fees. Short term trading means making lots of trades and high fees can drain your capital very quickly.
Step 2. Deposit money
You have to use fiat currency to fund your account. Beware of deposit fees, as many brokers charge for all sorts of actions. Trading is one too, of course, as is withdrawals. It’s worth checking the fee structure for all of these before you sign up.
Step 3. Decide how you’d like to trade
If you’ve heard of cryptocurrency trading, it probably means trading CFDs. This is different from actually owning a coin, with CFDs you bet on price moves instead. It lends itself to fast, short-term trading but you should be careful with the difference between the buy and sell price, as these can be another way brokers make money.
Step 4. Start trading
When you start trading, it might be a good idea to use a demo account. Virtually all brokers offer a version of this and it’s a way of trading with fake money, rather than putting your own funds at risk.
In terms of the trading itself, you have a simple choice to make with every trade. Do you think the coin is going to go up or down in value? If it’s the former, you should buy it (known as taking a ‘long’ position). Otherwise, sell (‘short’) it.
One other trading strategy it’s worth knowing about is using leverage. Leverage means putting down a deposit so you can make a trade worth many times that amount. This, obviously, means you can win big but you’re always liable for the entire trade value so it can get very expensive if you lose as well.
If you’ve got this far and still aren’t sure whether to buy, don’t worry. We still have more information to help you, starting with this summary of the pros and cons. After that, there are a few more questions you might find useful.
- Lots of demand for decentralised lending
- Unlock rewards like higher interest rates if you own the CEL coin
- Celsius reinvests 80% of its profits back into its users pockets
- There’s been controversy over how Celsius manages the deposits it controls
- Might be vulnerable to big sell-offs in other cryptocurrencies, like Bitcoin
Finally, here’s three questions before you decide whether to invest in Celsius.
1. Is it a good time to buy Celsius?
It depends on what you want to do with the coins. As the Celsius token unlocks better interest rates, if you’re going to deposit money or borrow on the platform, it’s a very good idea to buy some. If you’re looking at it as an investment, there are some different things to think about.
As a long term investor, do you think its price is going to be higher in the future than it is now? Or do you expect a pullback first? Similarly for short term traders, a lot depends on the current price. You can try different analysis techniques to decide if it’s an opportunity right now, or use our very own analysis to help you:
Celsius (CEL) price now up 115% in December
2. What problem does Celsius solve, and what are the coin’s investment prospects?
Celsius solves the problem of offering financial services without a bank. Anyone who holds a lot of coins already can use it to earn interest on them, or use them as collateral to borrow other coins or even fiat currency.
A lot of money has been staked and borrowed on Celsius already, which is a good sign for its future prospects as the industry grows. But you should note that there are other lending platforms out there. AAVE and Compound, for example, play a similar role but with fewer questions about their exact business practices.
This isn’t to say Celsius is a bad investment, rather that you should do your research before buying. Even more so if you’re intending to use their services. Our team is always on top of the latest news, and you can find the most important recent developments right here:
3. Do you want to hold Celsius for the long term?
Ultimately it depends what you want to do with it. If you’re bullish on its prospects or intend to use the service, then the answer is probably yes. For short term traders how long you hold is going to depend on what your charts say. Whichever one you are, here are some final things to consider.
Considerations for a long term investment strategy
Long term investing is the best choice if you think Celsius is only going to go up in the future. If you’re in it for the long haul, buy your coins on an exchange and use a wallet to store them.
Considerations for a short term trading strategy
A trading strategy means making lots of trades quickly to take advantage of small price changes. To trade like this, sign up to a broker with low trading fees and think about using techniques like CFD trading and leverage.