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Celsius Voyager

Celsius vs. Voyager: Crypto Interest Account Apps Review

Celsius vs. Voyager is a comparison often made by people who have recently discovered cryptocurrency interest accounts.

Both Celsius and Voyager allowed users to earn interest on their idle cryptocurrency assets but had meaningful differences. 

However, before we get into the product comparisons, it’s important to note one distinct similarity– both Celsius Network and Voyager declared bankruptcy in July 2022 after pausing user withdrawals. As such, neither platform should be considered for your idle assets, and the remainder of this review will be more of a post-mortem of sorts on the projects. 

Founded in 2017, Celsius Network was considered one of the “blue chip” cryptocurrency borrowing and lending platforms. Founder and CEO Alex Mashinsky designed Celsius as a means to democratize the lending landscape, and the app allowed users to earn interest on their deposited cryptocurrency, or borrow money by placing their crypto as collateral. 

Voyager Invest started as a cryptocurrency exchange; Voyager Invest Ltd. is a publicly-traded company, which is a rarity among cryptocurrency interest accounts. The platform also allows users to earn interest on their digital assets. It stands out among exchanges for its use of a hidden-spread trading model instead of charging users flat-rate fees for transactions, which usually makes it cheaper to buy crypto.

The following Celsius vs. Voyager review goes through the nitty-gritty of each unique business model, and the pros and cons of each option. 

Celsius vs Voyager: Key Information

 

Celsius

Voyager

Reviews

Celsius Network Review

Voyager Invest Review 

Site Type

Crypto lending app with borrowing and lending

Crypto exchange + crypto interest account

Beginner Friendly

Yes

Yes

Mobile App

Yes

Yes

Buy/Deposit Methods

Crypto deposits, debit card, bank transfer

Debit card, credit card, bank wire, external crypto transfer

Sell/Withdrawal Methods

External crypto wallet transfer

External crypto wallet transfer

Available Cryptocurrencies

Bitcoin, Ethereum, Link, and several others

Bitcoin, Ethereum, Litecoin, and around 60 others

Company Launch

2017

2017

Location

London, England

Jersey City, New Jersey, United States

Community Trust

Great

Great

Security

Good

Unclear

Customer Support

Great

Okay

Verification Required (KYC)

Yes

Yes

Fees

Excellent (there are none)

Okay (uses a hidden spread instead of flat fees)

Site + Promo

N/A

N/A

Company Bios: Celsius vs. Voyager

Alex Mashinsky and Daniel Leon created Celsius in 2017. The company raised approximately $100 million through private funding rounds. 

Celsius managed about $16 billion in community assets and had around 850,000 users.

Voyager was also launched in 2017. It was founded by Gaspard de Dreuzy, Oscar Salazar, Philip Eytan, Serge Kreiker, and Stephen Ehrlich. 

The company has raised just over $100 million in private funding.

Voyager is actively traded on the Canadian Stock Exchange. It IPOd under the ticker symbol VYGR on February 11th, 2019. The stock debuted at $0.95 and usually trade just above $3.00.

Both companies declared bankruptcy in July 2022 after pausing customer withdrawals due to unrelated events.

Voyager issued a non-collateralized $675M loan to Three Arrows Capital, which went under. 

Celsius found itself in severely illiquid positions with tanking DeFi prices. 

Feature #1: Interest Rates: Who Has Higher APY, Celsius or Voyager?

Users that store cryptocurrency assets on Celsius and Voyager can earn interest for doing so, but the platforms differ in a few notable ways. 

Rate changes: Celsius changed its interest rates every week and Voyager changed its rates every month. The figures covered in this article may differ from what you see on the app, but just know both platforms tend to change their rates as a reaction to market conditions and the lending landscape. 

Bitcoin:

  • Celsius offered 6.2% APY for a user’s first BTC and 3.51% for any additional BTC.
  • Voyager offered 5.75% APY on all of a customer’s BTC but requires users to maintain a minimum balance of 0.01 BTC to earn any interest.

Ethereum:

  • Celsius offers 5.35% APY for a customer’s first 100 ETH and 5.05% for any additional ETH.
  • Voyager offers 4.6% APY on ETH and requires a user to maintain a minimum balance of 0.5 ETH to earn interest.

Altcoins

Coin Name

Celsius Network

Voyager

Aave

5.92%

3.00%

Chainlink

3.00%

4.50%

Bitcoin Cash

4.51%

2.00%

Compound

4.60%

4.00%

Dash

4.60%

3.00%

Cosmos

N/A

3.00%

Cardano

N/A

5.25%

Dogecoin

N/A

2.00%

Litecoin

3.51%

5.50%

Polkadot

8.86%

12.00%

Stablecoins

Coin

Celsius Network

Voyager

Tether

8.88%

N/A

GUSD

8.88%

N/A

USDC

8.88%

N/A

How Do Celsius and Voyager Make Money?

Celsius claimed to make money by lending out the assets that it holds for a greater interest rate than what it pays out to users. For example, it might lend out Bitcoin at a rate of 9%, but it pays users a rate of 6.2%. However, it was actually participating in a variety of DeFi and NFT-related plays, which was its downfall in the 2022 bear market. 

There are some risks inherent to this revenue-generating activity. But Celsius claimed to over-collateralize its loans, which makes defaults relatively unlikely.

Voyager generates profit with a hidden spread that it employs when users trade crypto on the platform. The company’s CEO claims Voyager can use its hidden-spread system without impacting its customers’ profitability.

However, real-world results indicate this isn’t exactly true. A wide range of Redditors and reviewers report that Voyager’s hidden-spread system does cost them money.

For example, it might quote someone a price of $32,000 for 1 BTC. If the user makes the purchase, Voyager may actually only end up paying $31,975 for the BTC. The company would make $25 on the transaction.

The downside with this approach is that users who buy cryptocurrency through Voyager lose money instantly on any investment they make if it uses a hidden spread.

For example, if Voyager’s hidden spread is 0.5%, that means they’re essentially charging you 0.5% more than the market value for your purchase. If you tried to instantly sell the coin, you would be down 0.5% on the investment.

Feature #2: Payouts and Withdrawals

Celsius pays users the interest they earn every Monday. For most of the company’s history, Celsius let users withdraw funds whenever they wanted without extra fees. However, suddenly in June 2022, Celsius froze all customer withdrawals to “stabilize company operations” 

Voyager only pays out interest monthly. However, the company doesn’t have any lockups or limits. However, it’s worth noting that Voyager currently does not allow users to withdraw cryptocurrency assets– they must sell them for USD. This can incur a potential tax liability, so be aware. 

Feature #3: Celsus vs. Voyager Security

Celsius uses a system called multiparty computation (MPC) to secure its users’ funds. This is average for the cryptocurrency interest account industry.

The Celsius Network includes user-facing security features, including:

  • 2-factor authentication
  • PINs
  • Photo and video security
  • Biometric security options
  • Email and manual verifications for withdrawals

Voyager isn’t as clear about its security practices. The company has FDIC insurance for up to $250,000 of its users’ USD funds. But, like every other cryptocurrency interest account provider, it doesn’t offer insurance for cryptocurrency assets. The company offers 2-factor authentication but it doesn’t advertise any additional security features for its users.

Feature #4: Ease of Use

One distinct point of a Celsius vs. Voyager comparison is that both were incredibly intuitive mobile apps. Both started as apps and honed in on simplifying the user experience. Both companies emphasize the power of mobile investing heavily and have built their platforms accordingly. 

Celsius also has a web app for users who prefer to use a computer to access their accounts while Voyager does not.

Beginners will find both Celsius and Voyager easy enough to use. 

Both companies allow debit, credit, and bank transfer deposits, which makes it easy for a new cryptocurrency investor to start buying assets immediately.

Celsius vs. Voyager: Standout Features

Celsius’ standout feature was the company’s native cryptocurrency asset, CEL. Users who choose to borrow and make payments with CEL can receive up to a 25% discount on interest. International users also have the option of accepting interest payments in CEL instead of the assets they deposit, often enabling them to earn a higher interest rate.

Voyager also has a native token, VGX. The company offers “interest boosts”, which provide an additional 1% APR on certain coins, which change throughout the year. Users must hold at least 2,500 VGX to qualify.

Additionally, Voyager’s promise of no-fee trading is often viewed as a standout feature. But the company’s hidden spread system typically negates any savings that a user might receive from not having to pay flat-rate fees for trades.

The values of both tokens plummeted upon news of the troubles.

The Court of Public Opinion: Celsius Network vs. Voyager Reddit

While Celsius and Voyager both enjoyed stellar reputations for the bulk of their existence, they quickly lost favor with the cryptocurrency world upon freezing withdrawals. Both projects are looked at disdainful and pilloried for their lack of proper risk management, lack of disclosure, and wreckless behavior with user funds. 

Celsius Network vs. Voyager Customer Support

Customers can get in touch with Celsius by either filling out an online contact form or calling 201-824-2888. The company claims to offer 24/7 customer support but doesn’t say which contact method to use for it.

Voyager’s customer support is bare-bones. The cryptocurrency platform has an online contact form for its customers to fill out but doesn’t offer any additional contact methods.

Can You Trust Celsius Network and Voyager?

No. 

Celsius and Voyager were regarded as a trustworthy cryptocurrency interest account platform for the bulk of its history, but it lost it upon freezing customer withdrawals. 

Celsius Network vs. Voyager: Which is the Better Crypto Interest Account?

Neither Celsius Network nor Voyager are worthy of your deposits and will likely be defunct in the coming months. 


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