Celsius follows the Securities Lending business model that a lot of banks use, which is one of the safest models to use.
However, no investment is risk free, and lending is no different. When Celsius lends crypto to their trusted borrowers, this means that those borrowers get to temporarily access the users’ cryptocurrency. So, whether the users earn interest on their deposits depends on whether the borrowers are going to pay back their loans.
The Celsius company keeps control of the keys of each of your cryptocurrency wallets. This isn’t a big deal to most people, but it is something that you should know.
There are also concerns about data breaches, as with any crypto platform. Since Celsius is a centralized lending platform where the user is not in control of their keys, a lot of DeFi enthusiasts are not willing to use this platform for this reason alone.
Ultimately, it will come down to your own preference, and we advise you to research the security measures of the Celsius platform yourself.