Crypto, Etc
Published in

Crypto, Etc

9 Celsius Network Alternatives for Non-Accredited Investors (April 2022)

Welcome, Celsians, to the world of DeFi.

celsius alternative

9 Non-Custodial Celsius Network Alternatives

  1. Gelt Finance
  2. Linen
  3. Argent
  4. Zerion
  5. mStable
  6. Aave
  7. Anchor
  8. Uniswap
  9. Compound

The Obstacles Facing Celsius Network

Celsius is far from alone in facing regulatory hurdles.

What is an accredited investor?

As defined by the SEC, an accredited investor is a person, bank, company, broker, or trust that is thought to need less guidance from regulators.

What can accredited investors do (that you can’t)?

In the U.S., accredited investors can invest in what the SEC considers high-risk investments that may or may not be registered with the government.

Custodial vs. Non-Custodial

To understand why regulators are taking such an interest in cryptocurrency interest platforms — and why many are looking for a functional Celsius Network alternative for non-accredited investors — it’s important to know a little about blockchain asset (cryptocurrency, NFT) storage.

Custodial solutions are increasingly subject to regulatory scrutiny

In the case of custodial storage, a third party takes custody of your private keys (cryptography that lets you access/move your digital assets), and through them, your cryptocurrency/NFT, much like how a bank takes custody of your savings.

  • Cons: You don’t actually hold your own assets. Your “decentralized” currency can be, in practice, quite centralized — and there are significant risks and regulations that go along with that.

With custodial platforms, your decentralized currency can, in fact, be quite centralized.

Non-custodial solutions: the future?

You hold your own private keys, giving you unilateral control over your cryptocurrency/NFT. A third-party (interest account, exchange, software, wallet) cannot restrict your access to your assets.

  • Cons: With great power comes great responsibility. If you lose your private keys, you may lose access to your assets.

Enter DeFi

Following Celsius’ decision to only allow accredited investors to make new deposits and BlockFi’s $100 million fine, it is clear that custodial interest-generating platforms face significant regulatory hurdles.

Beginner-Friendly Celsius Network Alternatives

Migrating from Celsius and not sure where to get started? You have a lot of options. These are the easiest.

Gelt High-Yield Savings

User-friendliness: 9/10

Argent

User-friendliness: 5/10

Linen

User-friendliness: 6/10

Zerion

User-friendliness: 4/10

DIY Celsius Network Alternatives

Not for the faint of heart, the most varied way to replace Celsius Network’s yield generation is by interacting with DeFi protocols directly.

  1. Purchase the currency needed to pay transaction fees, which may be significant. This may be Ethereum.
  2. Purchase the cryptocurrency that you wish to loan on a cryptocurrency exchange or in your wallet (depending on which state you live in and which product you use). This will involve paying transaction fees.

mStable

User-friendliness: 5/10

Anchor Protocol

User-friendliness: 4/10

Aave

User-friendliness: 4/10

Compound

User-friendliness: 4/10

Uniswap

User-friendliness: 2/10

Look to DeFi for Celsius Network Alternatives

Though perhaps among the most user-friendly, custodians like BlockFi and Celsius Network are far from the only way to earn yields on decentralized assets.

  • What amount of speculation am I comfortable with?
  • Do I want my funds to be covered automatically (or am I OK with purchasing fund cover myself, if I’m interested in it?)

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Burgess Powell

Strong opinions, loosely held. Burgess explores topics ranging from mental health to marketing to climate change.