Best Litecoin Interest Rates for Passive Income

Best Litecoin Interest Rates for Passive Income feature image

Welcome, in this article we list all the best Litecoin interest rates you can get for passive income with LTC.

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

In the end we summarizes the risks with 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 for a long-term investment.

If you rather looking for Bitcoin interest accounts, see how 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 aspects like faster block generation rate and use of Scrypt as 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

Where to get the best Litecoin LTC interest rates?

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

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

You should consider going for the highest interest since this will have huge impact on your long-term holdings.

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

However, this comes with pros and cons as well.

Company Reviews

Interests

Invest

Best Litecoin Interest Rate With BlockFi

BlockFi is offering the best Litecoin LTC interest rate. Here, you can get 5.5% 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.

There is no minimum requirement for the Litecoin interest account. Also, there is no maximum cap. However, the withdrawals for Litecoin is limited to 10,000 LTC per 7-day period.

BlockFi users are 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

Best Litecoin Interest Rate With YouHodler

YouHodler gives the best Litecoin interest rate together with BlockFi. They are both offering 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
  • Minimum balance $100 and maximum balance $100.000

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% adn to acheive 8% interest rate for Litecoin you would need to

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

With BlockFi and YouHodler you don´t need to fulfill any of the above requirements and still receive interest 5.5% on your Litecoin holdings.

Deposit $100 and get $10 for FREE.

Celsius - Not the best Litecoin interest Rate

Celsius is not giving the best Litecoin(LTC) interest rate and you might want to consider to use the other platforms to earn passive income on your Litecoin holdings.

However, Celsius Network is a great application and you might want to consider to use it to deposit some of the cryptocurrencies they are offering some of the best yields on the market.

Celsius Network is giving competetive rates for Polygon(MATIC), Syntethix(SNX), Compound(COMP) and Aave(AAVE).

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 opporunities.

For example, if you are looking for passive income on you 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.

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

If you plan to deposit your Litecoins for a long term, it´s important to deposit into the account with the best Litecoin interest rate.

Why?

This is because of the compounding effect or the interest-on-interest effect.

What is the interest-on-interest effect?

This is how your capital will grown over time when you also earn interest on the interest payout from last year.

Look at the diagram below where we have demonstrated how your capital will grown 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 depositing your Litecoins LTC into interest accounts.

These are some risks

  • The company where you store your funds can go bankrupt. This happened CRED for example.
  • The company can make mistakes and therefor lose funds. BlockFi did a serious mistake even though it seems they will recover from it without any customer losing their funds.
For any investment, you should always do a risk versus reward calculation based on your own criteria.
 

 

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