How To Get a Loan On Celsius! Tutorial With Pictures!

Loans and debt...

Loans and debt can be great, but they can also be the worst thing a person does. It depends on how they are used!

Loans can be great to leverage one's portfolio and allow people to increase their money producing assets without selling other assets, there is such a thing as good debt. Good debt is debt that is used to grow a cash producing business, as long as someone doesn't leverage too much and keeps everything under control, there are no issues... Loans also allow almost instant cash to pay for things that people weren't expecting... like Medical Bills!

In the current debt fiat system, loans are used worldwide, it's a debt-based system after all... the main issue with this system is that loans are undercollateralized, which means that people can get loans without guaranteeing that they will pay back the loan. Undercollateralized loans in our fiat system is like building a house of cards next to a window, as soon as some dumbass opens the window the wind will make the house of cards crumble! And banks can lend out more money than they have, this is called Fractional Reserve, which only adds fuel to the fire.

Crypto doesn't have this issue. Most crypto lending companies (if not all) have their loans overcollateralized, which means that, even if a person can't pay back their loan after leveraging their portfolio, or after buying more money producing assets, the loan has enough collateral locked up to liquidate to always guarantee that the full loan amount is paid back. And banks can't create cryptos out of thing air since everything is registered on a immutable, decentralized, censorship proof ledger, so no fractional reserve on cryptos.

Among the crypto lending companies, Celsius is my favorite.

I've mentioned Celsius in the past, Celsius allows people to earn interest on their crypto, this interest comes from loans! Loans that anyone can apply for, and that's what I'm going to show today! How to get loans on Celsius.

How to get a loan on Celsius!

Start by depositing collateral on the app, if you need help with that I think you should read the first tutorial, remember you need to have enough collateral to be able to at least borrow the minimum amount Celsius allows, which is $1500, and remember that Celsius works with overcollateralized loans, which means you will need more than the $1500.

Click on the "Borrow" button in the main menu on the app.

Click on the "Get Cash" button.

Choose which type of currency you want to borrow, stablecoins or dollars. Among the stablecoins, there are many options, like USDC, USDT, TUSD, DAI, PAX. My favorite at the moment is USDC since USDC is Coinbase's stablecoin and I know Coinbase is a legal company in the USA that follows all the laws they can.

Next, input the amount you want to borrow and click the "Choose Collateral" button. The current minimum is $1500, but I've heard talks that Celsius is thinking about lowering this amount since it is a lot for many people.

Now, choosing the collateral. Celsius allows many different cryptos as collateral. In my opinion, and this is just personal opinion, I think BTC is the best collateral. Among all the cryptos BTC is the one that has the least volatility, and this is important because, if the loan collateral decreases in price by a lot, you might have your collateral instantly liquidated to pay for the loan... This is not very common, Celsius always tries to not liquidate people and to talk with them first. But it can happen!

Choosing interest rate, this is an important step, the more collateral you lock, the less interest rate you will have to pay. If you have enough collateral I think the best option is to go for the lowest interest rate possible, which means locking a lot of collateral. This allows not only a much lower interest rate but also allows more leeway when it comes to the "liquidation price".

Now to choose for how long you want the loan... remember, more time means more interest to pay, less time means less interest. This is a personal choice and depends on a lot of factors like what you will use the loan for and how fast you can pay it.

Now to confirm the loan. Read every detail, so you know how much you will have to pay per month. Paying in CEL actually decreases the interest rate too, so it might be a good option to pay in CEL only. The last square shows the "liquidation price", this is the price that your collateral will be liquidated to pay for the loan. Celsius normally tries to contact the person before this happens, but remember that the market is volatile and even if Celsius has their customer's best interest at heart, they can liquidate you to protect the rest of the customers.

Terms and conditions... After reading the terms and conditions tick the tick box and click "Request Loan".

And that's it... your loan has been requested and it's only a matter of time until the team accepts it.

Remember to use the money that you just got wisely, leave the consumerism behind and start investing/creating good cashflow businesses! Don't be like the majority of people that use loans for superficial things and end up heavily in debt with no way to pay it back! Loans can be the greatest financial instrument you will use if you choose to use it wisely!

Celsius also has a really nice feature called CelPay, which I've mentioned in the past. It's a feature that allows any Celsians to transfer crypto between wallets without paying fees and without requering the use of complicated hexadecimal addresses. If anyone wants to try CelPay and help me fill my Celsius wallet just hit me up with a CelPay link on my twitter DMs.

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Question of the day: For what do you normally use loans?

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