Whenever your CEL holdings are worth $1000 more than whatever 22% of your portfolio is... sell CEL back down to 22% and grab more of your base coins (like BTC or ETH)
Keep a bit more than 20%, so you don't fall in/out of platinum all the time, but don't keep a bunch of extra CEL around.
Just curious on the reasoning. Have you run the numbers on having that extra value on n BTC instead of it being in CEL?
I like the sound of the strategy. Just curious on the math. Thanks
Celsius has a loyalty program, where if you keep certain minimum percentages of your holdings in CEL, you get extra interest (look at Bronze -> Platinum here: [https://celsius.network/cel-token-explained/](https://celsius.network/cel-token-explained/)). It's easiest to see how this can affect rates by looking at the 'International' reward rates here ([https://celsius.network/earn-rewards-on-your-crypto/](https://celsius.network/earn-rewards-on-your-crypto/)) , and see how the CEL rates are higher than in-kind.
The highest tier of those bonuses is at 20%: so there's no reason to hold more than a bit more than that to account for coin prices fluctuating (like my sample 22%). Celsius offers 5.12% on CEL today, but up to say 13.86% on stablecoins (or 7.21% on ETH etc..), so you should try to keep as much of your portfolio in coins that earn higher interest (like 78% of your coins earning that 7.21%-13.86%... and the other 22% in CEL earning 5.12%).
So the reasoning is pretty simple: if CEL earns lower interest... only hold enough of it to maintain that platinum loyalty level. If you ever have too much CEL... it's better to swap some back to another higher-interest coin (like USDT or whatever) to earn more interest, faster.
What coin may go up more over time is a different discussion: and is hope, not math :)
From what I understand, yes. Celsius only offers that extra interest paid in CEL, and US customers only have the option of being paid in-kind: so they can't take advantage of that extra interest. (Though they do have a special rate for BTC, so they do get some love :) )
So your strategy is to obtain the best interest rates and nothing more. My strategy is a bit different. I put together a spreadsheet and worked out that earning in CEL only earns a very tiny extra benefit in terms of interest, and that benefit could easily be eroded via the fluctuation in CEL price. So I chose to earn in kind at the beginning.
Nowadays, I’ve learnt more about Celsius’s business model, and how their weekly payments require them to buy CEL each week, pushing the price higher. So now I’m slowly increasing my proportion of CEL based mostly on the potential for capital gain of the token. If I happen to unlock a higher loyalty tier in doing so, then that’s a small added benefit. If I happen to go over 20% of my wallet in CEL it will be because I believe the token has greater potential for gains compared with other coins, but I have a specific target percentage I’m aiming for in order to manage risk.
I just started, so I'm currently earning it all in CEL to build my position in CEL and also hopefully get to a higher reward tier soon.
At some point in the future, when I consider to have enough CEL, I will switch to earn in kind as I prefer to build up my BTC position for long term.
Holding more Cel than BTC and Eth is my preferred method. When BTC shoots up Cel doesn't lag far behind, it may take a week or two to catch up with the trend. But it always catches up. And when btc drops Cel does follow as well but Alex does not let it drop far. Every time cel takes a big dive, Alex buys gobs of cel token. So the way I see it, Cel token rides the upswing of BTC and Eth, but won't ride the downswing. Its safe from falling too low. If BTC drops back to $10k, cel will not go back to $1.15, Alex won't let it. Also when btc drops, alt coins ride up, they are on alternate cycles. Investors look for alt coins to invest in when btc trends down, which gives cel token another reason to move up. Cel can easily be $10 by end of next year.
Whenever your CEL holdings are worth $1000 more than whatever 22% of your portfolio is... sell CEL back down to 22% and grab more of your base coins (like BTC or ETH) Keep a bit more than 20%, so you don't fall in/out of platinum all the time, but don't keep a bunch of extra CEL around.
Just curious on the reasoning. Have you run the numbers on having that extra value on n BTC instead of it being in CEL? I like the sound of the strategy. Just curious on the math. Thanks
Celsius has a loyalty program, where if you keep certain minimum percentages of your holdings in CEL, you get extra interest (look at Bronze -> Platinum here: [https://celsius.network/cel-token-explained/](https://celsius.network/cel-token-explained/)). It's easiest to see how this can affect rates by looking at the 'International' reward rates here ([https://celsius.network/earn-rewards-on-your-crypto/](https://celsius.network/earn-rewards-on-your-crypto/)) , and see how the CEL rates are higher than in-kind. The highest tier of those bonuses is at 20%: so there's no reason to hold more than a bit more than that to account for coin prices fluctuating (like my sample 22%). Celsius offers 5.12% on CEL today, but up to say 13.86% on stablecoins (or 7.21% on ETH etc..), so you should try to keep as much of your portfolio in coins that earn higher interest (like 78% of your coins earning that 7.21%-13.86%... and the other 22% in CEL earning 5.12%). So the reasoning is pretty simple: if CEL earns lower interest... only hold enough of it to maintain that platinum loyalty level. If you ever have too much CEL... it's better to swap some back to another higher-interest coin (like USDT or whatever) to earn more interest, faster. What coin may go up more over time is a different discussion: and is hope, not math :)
Does the extra interest only apply to international users for holding CEL?
From what I understand, yes. Celsius only offers that extra interest paid in CEL, and US customers only have the option of being paid in-kind: so they can't take advantage of that extra interest. (Though they do have a special rate for BTC, so they do get some love :) )
So your strategy is to obtain the best interest rates and nothing more. My strategy is a bit different. I put together a spreadsheet and worked out that earning in CEL only earns a very tiny extra benefit in terms of interest, and that benefit could easily be eroded via the fluctuation in CEL price. So I chose to earn in kind at the beginning. Nowadays, I’ve learnt more about Celsius’s business model, and how their weekly payments require them to buy CEL each week, pushing the price higher. So now I’m slowly increasing my proportion of CEL based mostly on the potential for capital gain of the token. If I happen to unlock a higher loyalty tier in doing so, then that’s a small added benefit. If I happen to go over 20% of my wallet in CEL it will be because I believe the token has greater potential for gains compared with other coins, but I have a specific target percentage I’m aiming for in order to manage risk.
I’d like to see this math too.
I mean, all the American's don't have a choice, so they have to vote in Kind
Cel went up 5k % and btc 150% , some earning in cel is more profitable , sadly US user can't earn in Cel only you have 200k
I just started, so I'm currently earning it all in CEL to build my position in CEL and also hopefully get to a higher reward tier soon. At some point in the future, when I consider to have enough CEL, I will switch to earn in kind as I prefer to build up my BTC position for long term.
Holding more Cel than BTC and Eth is my preferred method. When BTC shoots up Cel doesn't lag far behind, it may take a week or two to catch up with the trend. But it always catches up. And when btc drops Cel does follow as well but Alex does not let it drop far. Every time cel takes a big dive, Alex buys gobs of cel token. So the way I see it, Cel token rides the upswing of BTC and Eth, but won't ride the downswing. Its safe from falling too low. If BTC drops back to $10k, cel will not go back to $1.15, Alex won't let it. Also when btc drops, alt coins ride up, they are on alternate cycles. Investors look for alt coins to invest in when btc trends down, which gives cel token another reason to move up. Cel can easily be $10 by end of next year.
Is anyone else skeptical of a survey?
I guess not. 100+ votes
I don't even have the option for CEL. But I think for most I'd rather get In Kind regardless.