The world of cryptocurrency is blossoming at a rapid pace and there are many players trying to get a slice of the pie. Coinbase and Celsius Network are two of the most prominent players that have emerged recently and are trying to grab a piece of the pie for themselves. How can both of these companies justify their claims to the user? Both have a lot to offer but do they have enough to justify a users choice?
In this post, we will compare Celsius Network (CEL) and Coinbase, two of the most popular crypto interest accounts. Both companies boast a massive user base, solid reputation and loads of features that are available to all users. CEL and Coinbase, however, differ from each other in important ways.Comparisons between Celsius Network and Coinbase are often made based on passive interest on cryptocurrency deposits, but the two platforms are distinctly different.
Celsius Network is a cryptocurrency lending platform that offers loans backed by cryptocurrencies and pays interest on popular cryptocurrency assets like Bitcoin and Ethereum, as well as stablecoins like the USDC.
Coinbase, on the other hand, is the most popular cryptocurrency exchange in the US; the cryptocurrency interest account feature exists only as a support service.
In short, Celsius is a newer company, but is more established in the cryptocurrency interest account niche and offers higher rates, while Coinbase is more established in the general cryptocurrency ecosystem and is starting to offer interest features.
In the following article, Celsius Network versus Coinbase will explore the benefits of each platform and compare them.
Celsius Network vs Coinbase : Important information
|Reviews||Our magazine||Our magazine|
|Type of place||Cryptocurrency lending app with loan and credit options||Cryptocurrency Exchange + Crypto-currency base account|
|Friendly to newcomers||Yes||Yes|
|Mode of purchase/deposit||Crypto currency deposits, debit card, bank transfer||Credit card, debit card, bank transfer, cryptocurrency deposits.|
|Method of sale/collection||Transfer of an external cryptocurrency portfolio||PayPal, bank transfer, withdrawal to an external crypto account.|
|Available cryptocurrencies||Bitcoin, Ethereum, Link and a few others.||Bitcoin, Ethereum, Litecoin and 58 others|
|Establishment of the company||2017||2012|
|Location||London, England||San Francisco, California, USA|
|Required verification (KYC)||Yes||Yes|
|Registration fee||Excellent (none)||Medium|
|Website + advertising||40 sign up bonus after transferring $400 or more and holding for 30 days.||10 bonus when you buy or sell $100 or more in cryptocurrency.|
Company biographies: Celsius vs Coinbase?
Celsius was founded in 2017 by Alex Maszynski and Daniel Leon. The company has raised about $100 million in private financing rounds. It manages more than $15 billion in public assets and has more than 850,000 users.
Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. The company, based in San Francisco, California, has approximately 56 million users (as of July 2023). Coinbase has over $220 billion under management.
Coinbase recently completed an initial public offering on the New York Stock Exchange and shares can now be purchased under the symbol $COIN. At the time of writing, the company has a market capitalization of nearly $48 billion.
Feature #1: Interest rate: Who has a better annual return, Celsius or Coinbase?
Coinbase only offers interest rates on a few cryptocurrencies, and they are modest at best. If your primary aim is to maximise annual efficiency, the Celsius network is the best option.
Coinbase offers rewards for bets on Cosmos, Tezos, Ethereum and USDC (its own stable currency). Here are the current prices:
- Location: up to 7.5
- Tezos: up to 7.5%.
- Ethereum: up to 5
- USDC : 0.15%
It is important to note that customers using Coinbase’s Ethereum stack must lock in their ETH in a smart contract. This smart contract will only unlock ETH when Ethereum switches to the Proof of Stake model. Perhaps Coinbase will eventually allow its users to trade the ETH they have locked into this smart contract, but for now there is no such option.
Celsius offers high interest rates on a wide range of crypto assets. The company adjusts its rates every week.
For comparison, here’s a current breakdown of Celsius rates as of July 2023:
- BTC – 6.2% for the first two BTC, then 3.51%.
- EPF – 5.05%.
- CEL – 4.86%.
- SNX – 13.99%
- MATIC – 10.51%
- USDC – 8,88%
- AAVE – 5.92%.
- DASH – 4.6
- COMP – 4.6
- BCH – 4.51
- WBU – 4.51
- EOS – 4.45%.
- LTC – 4.08%.
- ZRX – 3.51%.
- BAT – 3.51
- XLM – 3.10
- ETC – 3.0%.
- LINK – 3.0 % (IN ENGLISH)
- AIIC – 2.53
- UNI – 2.50
- BSV – 2.02%.
- ZEC – 2.02%.
- OMG – 2.02
- MANA – 2.02%.
If your decision on the winner between Celsius and Coinbase comes down to year-to-year periodicity, then Celsius is clearly the winner.
How do Celsius and Coinbase make money?
Celsius makes money by lending the assets it manages at a higher interest rate than it pays to the users who invest those assets.
For example, a company may offer loans with a 9% interest rate, but only pay 6% to the people who deposited the money for the loan.
The loans granted by Celsius are over-guaranteed, so the risk of default is relatively low.
Coinbase makes money on transaction fees. Every time a user makes a transaction on Coinbase, they must pay a percentage of that transaction to Coinbase.
If you want to better understand how Coinbase’s business model works, we encourage you to read the Form S-1 filed with the U.S. Securities and Exchange Commission (SEC) – it contains detailed information filed directly with Coinbase.
feature 2: Deposits and withdrawals
The payment and withdrawal policy of Celsius is very favorable for users who prefer weekly payments; depositors of Celsius receive their interest every Monday.
Celsius also allows users to withdraw their money whenever they want, at no cost. There is a soft limit for withdrawals over $50,000 per 24 hours, and processing can take 24 to 48 hours.
Assets placed on Coinbase earn interest daily. But customers may not be able to withdraw this interest (or their balances) within 35-40 days of deposit.
Coinbase does not charge withdrawal fees.
feature #3: Celsius vs Coinbase Security
Celsius secures its users’ funds through a system called Multilateral Computing (MPC). This is the industry standard.
Celsius Network also enables users to take responsibility for their own safety through features such as
- Two-factor authentication
- Pin codes
- Verification of recordings by e-mail and manually
- Biometric security options
- Photo and video protection
Coinbase offers first-class security; it keeps about 98% of its assets in cold storage. It is also one of the only cryptocurrency companies to offer FDIC insurance of up to $250,000 for USD funds – note that this does not apply to digital assets like BTC or USDC.
Coinbase offers PINs, two-factor authentication and a feature called Vaults, where users can store assets that cannot be withdrawn from Coinbase for 72 hours after withdrawals are initiated.
Characteristic #4: Ease of use
Both Celsius and Coinbase are suitable for beginners; absolute crypto-currency beginners should be able to use both platforms without too much trouble.
Celsius has a robust mobile platform, making it a great option for those who want to manage their cryptocurrency investments on the go. Users can also make deposits and withdrawals using standard financial instruments such as bank accounts and debit cards.
However, Coinbase takes the cake for usability: it is arguably the most user-friendly cryptocurrency platform and is designed to introduce most complete beginners to the crypto-currency ecosystem.
Advice from a specialist: The convenience of Coinbase comes with a price: higher than usual commissions. If you want to save on Coinbase transaction fees, start by creating a Coinbase account. Then transfer your fiat money to Coinbase Pro and trade on this platform with lower commissions or check out the Coinbase alternative.
Celsius Network vs Coinbase : Distinguishing characteristics
What sets Celsius apart is its own cryptocurrency, CEL. Users with a CEL can take advantage of discounts of up to 25% on their loan interest payments. International users can also opt for Cell income to benefit from higher rates than in-kind income.
A special feature of Coinbase is Coinbase Pro. Like the standard Coinbase exchange, Coinbase Pro allows users to buy, sell and trade a variety of cryptocurrency assets, but with significantly lower costs. It also contains more crypto-currency tokens than a standard corporate website.
Coinbase also offers users the opportunity to earn cryptocurrencies by exploring different projects.
Court of public opinion: Reddit likes both Celsius and Coinbase
Most people on Reddit and on broader valuation platforms tend to see Celsius and Coinbase as complementary rather than competing platforms.
Celsius first and foremost aims to become an excellent platform that interests cryptocurrencies, while Coinbase aims to become the easiest cryptocurrency exchange to use.
Some Reddit users have (rightly) pointed out that using a platform for cryptocurrency assets like Celsius carries some risk, but Celsius is rarely accused of being riskier than its direct competitors. Celsius is often one of the first recommendations for people wondering about cryptocurrency interest accounts.
People tend to complain about the high cost of Coinbase, but the solution to this problem is simple: Use Coinbase Pro and your transaction costs will be much lower.
Celsius Network vs Coinbase Customer Service
Celsius claims to offer 24/7 customer support, but does not specify what support options are available at any given time. US customers can fill out a contact form on the company’s website or call 201-824-2888.
Coinbase has an online FAQ page that customers can use to get answers to the most common questions. Users also have the option to send an email request to Coinbase. However, the company does not offer real-time phone support.
Customer service is a dead end at Celsius compared to Coinbase.
Can we trust Celsius Network and Coinbase?
Celsius and Coinbase are two of the most reliable platforms for crypto currency.
Celsius is trusted by over 850,000 users and has implemented many user-centric security features to help protect their assets. It is worth mentioning that in 2023 a third-party marketing server, Celsius, was hacked. Some Celsius customers have received phishing emails from hackers. Users who adhere to strict Internet security rules have never run the risk of losing their money.
Coinbase provides excellent security features for users, keeps 98% of user funds in cold storage, and offers FDIC insurance for US dollar assets. The company is also publicly traded and a hack would likely have a negative effect on its share price.
The incentives of both platforms are directly related to user safety.
Celsius Network vs Coinbase : What is the best paid crypto-currency account?
Celsius and Coinbase are not yet direct competitors in the cryptocurrency interest account niche. We think this could change as the cryptocurrency interest account industry grows and Coinbase continues to expand its offerings.
Currently, Celsius leads Coinbase in the features users look for most on trusted cryptocurrency interest sites – higher annual returns on a wider range of assets. It offered between 8.88% and 12% on stablecoins, including Coinbase’s own USDC, and consistently beat Coinbase on other digital assets like bitcoin and Ethereum.
However, both platforms can be used in combination. Coinbase and Coinbase Pro can be used to buy a wide range of assets for which Celsius offers a higher annual interest rate, directly in fiat currency – a feature that Celsius itself does not have. Once these assets are acquired, they can be sent to Celsius to start earning interest at a discount.
CoinCentral readers can receive a $40 signup bonus (payable in BTC) when they sign up with Celsius and transfer $400 or more.
You can also get $10 on Coinbase when you buy or sell cryptocurrencies worth $100 or more.
Frequently Asked Questions
Which is better Celsius or Coinbase?
Celsius is better than Coinbase.
What is the best crypto interest account?
The best crypto interest account is the one that offers the highest interest rate.
Is crypto better than Celsius?
No, Celsius is better than crypto.
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