Want to learn a bit more about the Celsius Network compounding interest, how it works and a little example of what is possible with this platform?
In this short article, I’ll be going over exactly what it is and how you can go about using it for your advantage.
Let’s take a look.
Celsius Network, as opposed to some of its competition, rewards its customers and users, by giving them a weekly payout on their crypto assets.
This means that you will get four different installments of interest paid out each month, which makes it compound a lot faster (especially if the assets you’re getting interest on is also variable).
Paraphrasing from Wikipedia compound interest is:
When interest itself, is added to the principal or deposit. This is also known as “Interest on interest”, and the result is that the weekly interest paid out (in this case) is reinvested into the “initial capital”.
This means that there is an exponential growth on your capital if the interest on the asset doesn’t vary or varies only a small bit.
In other words, the interest that you earn, each week, is added onto your account, and start generating interst in of itself. If the asset you’ve generated yield on, gets more valuable as time goes on, then the interest that that interest generates, goes up in value too.
Celsius Network Compounding Interest Example:
Just to give a visual representation of this, the following is an example of some weekly BTC earnings in Celsius.
Here, you can see the compounding interest at work after just a few months of interest payments.
In this case I’m earning interest of my BTC, in the Celsius Network Native Token CEL, which has been somewhat stable in price and last months.
Even then, since the price of BTC has been going up, as you can see from the image below, the yearly interest has been growing somewhat exponentially even though the monthly interest payments seems to be “stair-stepping” up.
A probably even better idea, is for example to earn BTC on BTC, starting from when the price of the asset it low. This is because as the price gets higher, every installment of Interest also goes up in value which means it itself will also be generating more BTC (since its a variable asset).
This compounding interest mechanism, is something that very few of the Celsius Network alternatives out there, have.
In the case of one of its main competitors BlockFi, these offer only monthly interest payments, which is not bad, but you don’t get to have multiple instalments of payments, which can then generate yield on themselves.
Another thing that makes the Celsius Network compounding interest weekly payments nice, is that, since you get the interest payment on that same week, you can go ahead and sell or invest that interest, right then and there, without having to wait another 3 weeks.
Grab $50 In Free BTC With Our Referral Code: 110665b3ee
If you’re interested in trying out the platform we are going to be leaving you a referral code that you can activate, as a first-time customer by downloading the app here in this link.
This link will allow you to get $50 in free BTC on your first $400 deposit on the Celsius Network platform, and you can deposit that money in any assets that the platform allows for.
The reward will be available in your balance after 30 days of you maintaining that first deposit.
This doesn’t mean that you can withdraw at any moment in time…
It just means that if you would withdraw before the 30 days are up you will not get the bonus.
If you don’t like the platform, or don’t want to keep using it, you can send the $400 worth of any asset onto it, gain 4 installments of Celsius Network compound interest in either that asset or the CEL token (so say for example, $400 in BTC earning BTC) reach the 30 day requirement, get the $50 in free BTC and then withdraw your initial deposit, interest payments and reward from the platform fee free.
Celsius Network has no withdrawal fees no transfer fees no deposit fees no swap fees and no other fees of any other kind.