Are you a beginner that wants to know how to buy Litecoin in Australia but don't know where to start? If so, this guide will show you how to obtain Litecoin with AUD. To ensure the safety of the purchase, this how-to article will explain the buying process using one of the best Australian cryptocurrency exchanges as an example.
How To Buy Litecoin In Australia
To purchase Litecoin with Australian Dollars, follow these steps:
- Create an account with Swyftx
- Complete identity verification
- Activate 2 Factor Authentication
- Deposit funds in AUD
- Enter the amount of LTC to buy
What Is Litecoin?
Litecoin was created by ex-Google engineer Charlie Lee in 2011 to improve the speed of transactions handled by a blockchain and developed the platform using code almost identical to Bitcoin. The project has a few distinct differences that aimed to solve the transaction speed and scalability of Bitcoin.
Litecoin was created as a peer-to-peer Internet currency to enable instant, near-zero cost payments to anyone in the world as an alternative to fiat currency systems that exist today. It can be used to purchase web development, online services and everyday goods using an open-source, global payment network.
Is Litecoin A Good Investment?
Litecoin was very profitable for investors that bought LTC at the beginning of 2020 when the price soared more than 800% from the lows. Projects like Litecoin are likely to benefit from any bull run as money enters the market which can offer rewards for investors. However, there remains questions on the wide-scale adoption of Litecoin as a form of currency in the long term with more competitors in the market.
Where To Obtain Bitcoin In Australia
The best method to obtain Litecoin is to use a regulated and trusted Australian exchange. Most exchanges in Australia offer LTC which can be purchased with AUD using a bank account. The following exchanges are easy to use and compliant with AUSTRAC for investing in crypto in Australia.
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|$20 Bitcoin for creating a verified account||Visit Swyftx||Swyftx Review|
|Up to $100 welcome bonus||Visit Binance||Binance Review|
|370+||1% for instant buy and sell|
|None available at this time||Visit CoinSpot||CoinSpot Review|
|$10 Bitcoin for creating a verified account||Visit Digital Surge||Digital Surge Review|
Guide To Buying Litecoin In Australia
1. Create An Account With An Exchange
The first step to making a Litecoin purchase is to create an account with a cryptocurrency platform in Australia such as Swyftx. To get started, visit the Swyftx website using our link for $20 BTC and click on the "Sign Up" button. This will re-direct to the registration page that will show the promotion code. Enter a valid email address, set a strong password, full name name and phone number. Click "Agree" to the terms and conditions and hit "Create My Account".
2. Complete Identity Verification
Once an account has been created, the next step is to commence the ID verification process in accordance with Know Your Customer (KYC) and Counter Terrorism Financing (CTF) regulations under Australian law. Before a wallet can be funded with AUD to deposit and withdraw funds, the account must be verified as per with the rules set by AUSTRAC.
Using Swyftx as an example, the verification process is fast and hassle-free which can be completed within 2 minutes of creating a new account. To start verification, login to the account and navigate to the 'Verification' tab under the 'Profile Tab'. A valid email address, mobile phone number of identity document number will need to be provided.
3. Secure Account & Activate 2FA
To protect any funds within a crypto exchange account, it is vital to increase the basic account security level and turn on Two Factor Authentication (2FA). This should be the first step after verifying an account and prior to depositing any funds. 2FA is a specific type of multi-factor authentication that requires two methods to verify the user's account and even withdrawal requests. Popular 2FA apps for multi-factor authentication are Authy and Google Authenticator which can be downloaded for both iOS and Android devices.
4. Deposit Funds In AUD
Finding an exchange that accepts local deposit methods using Australian Dollars is an important consideration. The majority of cryptocurrency exchanges in Australia have direct AUD payment methods with varying fees. The most common deposit options include bank transfer, POLi and PayID.
POLi connects to Australian Bank accounts and is processed instantly. PayID and bank transfers can take between 1 and 3 business days. Alternative payment methods that are available with certain Australian exchanges include cash deposit at a local newsagency, BPAY and credit cards. Swyftx is one of the few local options in Australia that allows using a bank card.
5. Buy Litecoin
Now that your account is verified and you've deposited AUD, you can buy Litecoins. To get started, click "Trade" on the left side bar. This will bring up the "Assets" list where you can search and select Litecoin. Select how much AUD you want to spend and click "Instant Buy". The LTC amount will be purchased, show in your trade history and stored in the Swyftx wallet.
Litecoin Exchanges In Australia: Reviews
Our review and assessment of the popular Litecoin exchanges in Australia is based on important factors such as ease of use, reputation, charting features, trading fees, deposit methods, security and customer support.
Swyftx is an AUSTRAC registered Australian cryptocurrency trading platform with over 600,000 users that provides a simple and transparent way for individuals to invest in more than 280 cryptocurrencies such as Litecoin. The platform offers excellent features that will suit various types of investors such as rapid AUD deposits and withdrawals, portfolio tracking, recurring orders, low trading fees, demo mode and price alerts. For new users, there is also a Swyftx sign-up bonus of $20 when using this link.
One of the best aspects of Swyftx is the feature-rich platform such as a user-friendly a mobile app, tax calculator and dollar cost averaging tools. The desktop and mobile application have been designed for beginners and intermediate investors to get started with digital currencies. The trading experience is very simple on a fully customizable dashboard that can be tailored to suit each investor.
The transaction cost to buy and sell Litecoin using Swyftx is 0.6% fee in addition to a spread charge that averages 1.7%. Compared to the industry average spreads of 4%, the overall trading fees are reasonable when Swyftx is measured against other exchanges.
2. Digital Surge
Digital Surge is a Brisbane based digital currency exchange that provides a fast and easy way to buy and sell Litecoin using AUD. Based in Brisbane, the team are committed to building trust and transparency within the cryptocurrency community and to bring awareness to the industry for all investors alike.
The Australian cryptocurrency exchange is focused on simplicity which starts from the verification process which is automated. That means users can buy digital currency quickly and easily using a buy wizard that guides through each step.
Digital Surge's trading fee is 0.5% which is competitive to to other platforms with spreads as low as 0.4% per transaction. This is comparable to brokers such as Swyftx which uses a similar fee structure. There are no fees to deposit and withdraw Australian Dollars directly with a local bank which are processed near-immediately.
In our opinion, Digital Surge is one of the best options in Australia for beginners to buy Litecoin due to its ease of use, rapid AUD deposit and withdrawals, responsive customer support and minimal fees.
CoinSpot was founded in 2013 and has built up a solid reputation as a leading Australian cryptocurrency exchange that is focused on helping newcomers to buy Bitcoin and a wide range of cryptocurrency coins with AUD.Coinspot supports several payment methods for users to deposit funds such as POLI, PayID, BPAY or a cash deposit.
Each payment method using an Australian bank account deposit does not incur a deposit charge. In comparison, using BPAY or cash payments will incur a deposit fee of 0.9% and 2.5% respectively.
Coinspot has introduced a new feature that simplifies cryptocurrency investing with their 'bundles' option. This allows investors to buy a group of assets in one transaction. Each asset allocation is grouped in categories (e.g. Top 3, Top 10, Privacy coins etc) and incurs a one-off trading fee for all coins within the bundle.
Ways To Get Litecoin With AUD
In Australia, there are several ways for residents to buy Litecoin. Each method will comprise of different risks and fees that must be considered before making any transaction to invest in LTC with AUD.
Buy Litecoin Using Bank Transfer
You can purchase Litecoin using bank transfer (EFT) using a regulated cryptocurrency exchange in Australia. Bank transfers are usually credited within the same business day depending on the bank. Most Australians will be familiar with using an EFT transaction using their online bank account.
To complete a bank transfer, you need to obtain the BSB and Account Number of the exchange's bank account. This is not different from making a payment to anybody. You should note that bank transfer can take a bit longer to clear compared to other deposit method and it is easy to make an error.
Buy Litecoin Using PayID
Using PayID is an easy method to purchase Litecoin in Australian. It is supported by most of the larger Australian banks and is a near instant payment method. This will will suit investors that wish to make an immediate Litecoin investment.
AUD deposits will be credited to your account within minutes of being transferred from your bank account. All you need is the cryptocurrency exchange's PayID email address to make a deposit.
Buy Litecoin Using POLi
POLi is an instant deposit method that is available on several cryptocurrency exchanges in Australia to purchase Litecoin. The deposit method allows you to complete the transaction from the exchange through an interface to your supported bank account.
It works in the same way that you would normally visit your online bank website to make a payment. POLi payments are incredibly simple and only takes a few minutes to complete and the funds are transferred direct to the exchange.
Buy Litecoin With Cash Deposit
You can buy Litecoin with a cash deposit in Australia using a regulated cryptocurrency exchange. You will still need to provide identification to comply with regulations in Australia even if you pay with cash to buy crypto. To buy Litecoin with cash, you will need to complete the transaction at a supported newsagency across the country. This method does incur higher fees between 1.5% and 2.5%.
Frequently Asked Questions
Charlie Lee created Litecoin to improve on the transaction speed and scalability of Bitcoin. Both networks provide near instant transactions, however the key difference is between the two is the time it takes to verify the transaction by other network participants.
According to data from Blockchain.info, the Bitcoin network’s long-term average transaction confirmation time is just over 10 minutes per transaction, though this can vary widely when traffic is high. The equivalent figure for Litecoin is roughly 2.5 minutes. In principle, this difference in confirmation time could make Litecoin more attractive for merchants.
To provide an example, a merchant selling a product in exchange for Bitcoin would need to wait nearly four times as long to confirm payment as if that same product were sold in exchange for Litecoin. On the other hand, merchants can always opt to accept transactions without waiting for any confirmation at all.
Litecoin is a digital currency which is deemed as an 'asset' which is subject to capital gains tax in Australia. The Government does not view Litecoin as a form of money like the Australian Dollars (AUD) at the time of writing. This means, for most individuals that buy, trade and sell LTC, there will be a taxable event for each activity that needs to be declared to the ATO. For more information, read our crypto tax guide for Australia.
Buying Litecoin in Australia does not get any easier or cheaper with Swyftx. It's one of the fastest-growing crypto exchanges in Australia that has excellent features, the lowest spreads and trading fees in comparison to other competitors.