What is LiteBit Earn?
Litebit Earn is the best way to let your crypto holdings work for you. You receive interest on your crypto holdings on a weekly basis. To start earning, make sure you have the selected crypto in your LiteBit wallet. The rewards are then automatically paid out in your wallet! Check below for more info.
In which countries is LiteBit Earn available?
Currently, only customers from the following countries are eligible for LiteBit Earn:
- The Netherlands
Which cryptos are eligible for Earn profits?
For now, we have the following 4 cryptos for which you can start earning:
|Coin:||Estimated Annual Percentage Yield (APY) up to:|
Note: APY is estimated and subject to change on a daily basis.
In the future, we will support more cryptos that are eligible for LiteBit Earn.
What is Annual Percentage Yield (APY)?
APY, which stands for Annual Percentage Yield, is the rate you can earn on your crypto over a year and it includes compound interest. The annual percentage yield is expressed as an annualized rate.
How does staking work?
A staker, is a stakeholder of blockchains that employ a proof of stake (PoS) model. Stakers usually support the security, operations and other functionalities of a blockchain network. Validators and delegators contribute to verifying transactions in the network by guaranteeing the validity of the next block with their own stake. In return, they receive a block reward (like a miner does, too).
In the case of hot staking, your wallet needs to be connected to the network and is online. Cold staking on the other hand can be done from an offline wallet. Cold staking is generally considered more secure.
At LiteBit, we offer cold staking from your LiteBit wallet. You do not have to move your cryptos externally.
In this article, we offer a more elaborate introduction to the technology of staking: https://www.litebit.eu/en/education/what-is-staking
How do I earn staking rewards on LiteBit Earn?
The amount of crypto you receive is based on your current holdings of that crypto. Each week you will receive interest on your crypto holdings. This is a percentage of the total. In order to calculate the weekly earnings, the interest rate is expressed as the Annual Percentage Yield (APY).
When are the rewards paid out?
The staking rewards will be deposited in your LiteBit wallet every Monday. These rewards are based on the lowest balance of the week before. You can see the rewards in your wallet order history.
What are the risks involved with LiteBit Earn?
For the current version of LiteBit Earn, only cold staking is enabled for some eligible tokens. As mentioned before, cold staking is considered less risky than hot staking. Other yield generating strategies or methods, like lending, are generally considered riskier than staking. The staking technology itself is generally considered relatively safe. But crypto, like any investment, will never be risk-free. Volatility in crypto is high.
We currently do not offer hot staking or lending. Future additions to Earn may include these riskier products, but they will be on an opt-in basis (meaning: you have to enable it yourself once you are familiar with the risks involved).
How do I participate in LiteBit Earn?
To start earning, make sure you have the selected crypto in your LiteBit wallet. The rewards are then automatically paid out in your wallet. You can opt in and out whenever you want.