Best Litecoin LTC Interest Rates APY with BlockFi

Best Litecoin Interest Rates for Passive Income feature image

This article lists all the best Litecoin interest rates you can get for passive income with LTC.

Further, we compare the alternatives to decide which one is best for you.

In the end, we summarize the risks of depositing your coins into centralized applications versus the potential reward.

Also, we demonstrate how important it is to go for the best Litecoin LTC interest rate and a long-term investment.

If you are instead looking for Bitcoin interest accounts, see how to earn interest on Bitcoin.

No Financial Advice, Information only. Do your own research

What is litecoin?

Litecoin (LTC) was created in 2011 by Charles Lee as a fork of Bitcoin. Litecoin differs from Bitcoin in aspects like faster block generation rate and the use of Scrypt as a proof of work algorithm (Bitcoin has SHA-256).

Scrypt is a less complex algorithm and does not require such a high hash rate as SHA-256. The block time for Litecoin is only two and a half minutes (Bitcoin has 10 minutes block time). However, Scrypt is more memory intensive than SHA-256.

What is litecoin by Whiteboard crypto?

Whiteboard crypto is a great Youtube channel explaining complicated things with whiteboard animations. The video linked below describes Litecoin and compares the crypto with Bitcoin.

Where to get the best Litecoin LTC interest rates?

We have listed all the best places to get the highest interest rate on your idle Litecoin LTC holdings in the table below.

All different service providers come with pros and cons, which we summarize later in this article.

It would help if you considered going for the highest interest since this will significantly impact your long-term holdings.

Also, you must consider what currency you would like to receive your interest in. For example, with Celsius and NEXO, you can boost your interest rate if you choose to receive your payments in their native tokens.

However, this comes with pros and cons as well.

Invest

Interests

Review

*Sign up bonus with terms and conditions

**Reduction in fees

Coinloan Litecoin LTC Interest Rates

Coinloan offers the best Litecoin LTC interest rates for customers from the USA. Here, you can get up to 7.2% on your Litecoin holdings which is a great yield.

Coinloan is a lending and borrowing online platform for cryptocurrencies. You can lend your cryptocurrencies to earn interest or borrow money and use your cryptocurrencies as collateral.

Read more about Coinloan interest rates and fees in this review.

Litecoin LTC Interest Rate With BlockFi

BlockFi is offering among the best Litecoin LTC interest rate. Here, you can get 3.5% on your idle Litecoin holdings.

On top of this, BlockFi has a great signup offer where you can receive a bonus of up to $250.

BlockFi users are entitled to one free crypto withdrawal per calendar month and one free stablecoin withdrawal per month.

Pros

  • Great sign up bonus
  • Best Litecoin interest rate
  • One free withdrawal per month
  • Payouts are calculated and paid in the same cryptocurrency for each wallet

Cons

  • Monthly interest payment

BlockFi Bitcoin Rewards Credit Card

BlockFi Bitcoin rewards credit card is the first crypto credit card.

With the BlockFi Bitcoin rewards VISA credit card, you can earn an unlimited 1.5% cashback in Bitcoin on every purchase.

See our BlockFi credit card review for more information.

$250 BlockFi SignUp Bonus

BlockFi has probably the best signup bonus among all interest accounts. Here, you can get $15 when you deposit $100 but you can get up to as much as $250. Go to BlockFi via our link for full terms and conditios.

Best Litecoin LTC Interest Rate With YouHodler

YouHodler gives the best Litecoin LTC interest rate and offers 5.5 % APY on your LTC holdings.

YouHodler has a minimum requirement of an equivalent to $100, and they will give you interest up to a maximum balance equivalent to $100.000.

With YouHodler, you can also investigate other features, such as MultiHODL or Turbocharge.

Pros

  • Weekly interest payment
  • Best Litecoin interest rate
  • Payouts are calculated and paid in the same cryptocurrency for each wallet;
Cons
  • The minimum balance is $100, and the maximum balance is $100.000
Read more about YouHodler and compare the interest rates in our YouHodler Review VS NEXO, VS Celsius, VS BlockFi.

NEXO can give you the best Litecoin interest

With NEXO, you can get up to 8%, which would be the best Litecoin interest rate in our comparison.

However, the default rate is 4%, and to achieve an 8% interest rate for Litecoin, you would need to

  1. Lock your funds for one month
  2. Have more than 10% of your portfolio allocated in NEXO tokens
  3. Receive your interest payments in the NEXO token

Read more about the NEXO wallet review with loyalty levels and best interest rates 2022.

Binance - Not the Best Litecoin Interest Rate

Binance is not giving the best Litecoin LTC interest rate, and we wouldn’t use Binance to earn passive income on our Litecoin holdings.

However, Binance is the largest crypto exchange and gives a lot of other alternative opportunities.

For example, if you are looking for passive income on your Polkadot(DOT), Cardano(ADA), Solana(Sol), Cosmos(ATOM), you should check Binance high yield program.

Get 20% off from all fees charged by Binance with our referral code.

Crypto.com Earn Litecoin Interest Rates

With the Crypto.com Earn feature in the mobile app, you can earn up to a 5% interest rate on your Litecoin LTC holdings. Crypto.com offers the lowest crypto exchange credit card deposit fee for US customers.

To receive the best interest rates in the Crypto.com Earn feature, you need

  1. Stake at least 35.000 EURO in CRO
  2. Lock your funds for three months in the Earn feature

However, the staking comes with a lot more rewards and benefits. Read more about our CRO VISA card staking requirements article about the cashback and rewards.

$25 Crypto.com SignUp Bonus

When you signup with Crypto.com via our referral link and stake CRO for a Ruby metal VISA card ($400) you will get $25 in a welcome bonus. The ruby card will give you 2% cashback on all purchases and 100% back on Spotify.

Crypto.com Referral Code: mcmk7qgbhh

Why is it important to find the best Litecoin LTC interest rate?

If you plan to deposit your Litecoins for the long term, it’s essential to deposit them into the account with the best Litecoin interest rate.

Why?

It’s crucial to find the best rate because of the compounding interest effect or the interest-on-interest effect.

What is the interest-on-interest effect?

Interest-on-interest (or compounding effect) is how your capital will grow over time when you earn interest on the interest payout from last year.

Look at the diagram below where we have demonstrated how your capital will grow over time if you deposit $100 worth of Litecoin into the different accounts mentioned in this article.

 Start DepositInterest Rate10 Years20 Years30 Years
Binance1001,0032103107110
NEXO1001,0408149223332
Celsius1001,04148219324
YouHodler1001,055171292498
BlockFi1001,055171292498
Best Litecoin Interest Rates over 10, 20, 30 years in a diagram

Risks interest accounts and Cryptocurrencies

As for any investment, there are also risks involved in depositing your Litecoins LTC into interest accounts.

These are some risks.

  • The company where you store your funds can go bankrupt. CRED went bankrupt, for example.
  • The company can make mistakes and, therefore, lose funds. BlockFi made a severe mistake even though it seems they will recover from it without any customer losing their funds.
You should always do a risk versus reward calculation based on your criteria for any investment.
 
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