How would you like to make money by doing absolutely nothing? Well, if you own a Litecoin and know how to stake it, then this is possible. Litecoin is a cryptocurrency that has been experiencing increasing popularity since it was introduced in 2011. Litecoin can be used to purchase goods and services just like Bitcoin. However the price of Litecoin fluctuates far less than Bitcoin. This means that Litecoin is better suited for purchases or long-term investments than Bitcoin. The idea of staking coins can be confusing at first glance, but the benefits are well worth the initial time investment. In this post, we will discuss all that goes into staking Litecoin and how it works. Read on for more information!
Intro To Litecoin
Litecoin, like Bitcoin, is a decentralized peer-to-peer cryptocurrency and open-source software project. It functions similarly to how the internet utilizes miners who verify transactions with their computing power in exchange for transaction fees and newly created Litecoin.
Litecoins’ use case is very similar to that of Bitcoin. It can be used as a store of value, making purchases and long-term investments just like gold or stocks.
Litecoin uses the Scrypt hashing algorithm, which allows it to run faster than other cryptocurrencies such as Bitcoin. It also means that mining equipment is more expensive because they need higher processing power to solve algorithms quickly enough for rewards. Like all digital currencies, their price fluctuates constantly based on supply and demand so remember to do your research before investing if you are interested!
How Does Litecoin Work?
Litecoin works similarly to Bitcoin in that it is open-source and operates on a blockchain. The main difference between Litecoin and other cryptocurrencies like Ethereum or Ripple is that the number of coins out there is far less than those other currencies. While Bitcoin has approximately 16 million coins existing currently, Litecoin only has around 54 million. Which means each Litecoin is worth a fraction of the price of Bitcoin.
Litecoin can be used for purchases or long-term investments, just like other cryptocurrencies. Still, this fluctuation in value means that Litecoin is better suited to purchase goods and services rather than hold onto it as an investment. You can keep track of your wallet on our site through one of these wallets.
Litecoin Staking – Use BlockFi
Staking is the process of securing and verifying a cryptocurrency’s network via “locking” your coins for some time. You can then earn interest on the locked amount based on how often you choose to lock them and for how long.
For example, if I have 100 Litecoin in my wallet but decide that I want it staked so that I am earning interest every day while still being able to access my funds whenever required, I would select 365 days as my locking period – meaning every single day they are unlocked for one hour (365 / 12 = 30). The longer you decide to stake your currency, the more compounding interest will build up over time!
How To Stake Litecoin Using BlockFi
To start staking your coins, you need to have a wallet with some LTC in it as well as an account on the network itself – both free! Using BlockFi, you can stake your coins by putting them into the staking pool. This effectively gives you a chance to verify blocks and earn newly minted Litecoin.
The BlockFi team will monitor the network for any transactions that might be worth rewarding yourself with some freshly created Litecoins! These are paid out directly into your wallet, so you won’t have to worry about anything else! You don’t even need to leave BlockFi open as all of these tasks happen automatically on our end. All you do is choose how much LTC you want in there (the more, the better), and we’ll take care of everything from there.
Staking means keeping coins in an account where they become part of a blockchain. Every proof of work blockchain has a version that uses “proof of stake,” which is more energy-efficient than the other. You can start staking your Litecoin by depositing them in BlockFi to monitor for any blocks and automatically pay out newly minted coins into your wallet! You can get started on BlockFi here.
Interest Rates for Litecoin Token On BlockFi
Interest rates for the Litecoin token using BlockFi are as follows:
- Monthly Percentage Rate (“MPR”): 17.00% per annum;
- Annual Percentage Yield (“APY”): 18.28% per annum;
- Interest Accrual Period: 24 hours a day, 365 days a year, with interest being compounded daily.
The above numbers assume that the user has no withdrawals for the duration of each compounding period and are subject to change without notice at any time. Interest rates may vary based on market conditions and will be recalculated every night.
*Interest rates are still are subject to change daily and depend on market conditions.
Benefits To Using BlockFi
When you use BlockFi, your Litecoin tokens are safe and secure in our non-custodial platform. This means that you’re the only one who can access your private keys – we don’t have them! So if anything ever happens to BlockFi, you still have complete control over your funds.
- There is no minimum deposit required.
- Interests are paid out daily without needing to wait for a payout schedule.
- You can withdraw your funds at any time, with early withdrawals incurring fees and all coins being subject to selling restrictions until maturity (30 days from the withdrawal date).
- Conversions between supported tokens must be done through our site, which will incur a fee on both sides that varies based on market conditions.
- All conversions outside of BlockFi’s system may have additional costs or delays associated with them.
In this article, we introduced you to the basics of Litecoin and gave a brief overview of how it works. We also discussed why staking your coins with BlockFi is an excellent idea for anyone looking for higher interest rates on their cryptocurrency holdings.
If you’re looking for a way to earn interest on your Litecoin, check out BlockFi and take advantage of the benefits it offers. Interest rates are high, and they provide more security than other platforms like Coinbase or Circle Invest. The best part is that there’s no minimum deposit amount so anyone can get started–even if all you have is $25 worth of Litecoin! You can get started staking your Litecoin on BlockFi here.