How to invest in Litecoin Australia

Looking to invest in Litecoin (LTC) in Australia? You have two main options. You can buy Litecoin (LTC) coin directly. Or you can trade in what are known as ‘currency pairs’, where you trade on the performance of LTC versus a fiat currency (like USD, EUR, or AUD) or another crypto. Either way, the safest way to invest in Litecoin (LTC) is to use an online broker.

Below we outline the reasons why Litecoin (LTC) might suit your investment portfolio, as well as review 3 reputable brokers which all take Australian Dollars (AUD) and allow you to trade in Litecoin (LTC).

Best Broker to Invest in Litecoin Australia – eToro

How to Invest in Litecoin Australia – Step-by-Step Guide 2021

To invest in Litecoin, you will need to use an online broker.

  • Step 1: Open an eToro account: It does not take long. Go to eToro.com. Press the ‘Join Now’ button. Supply a username, your email and a password. (You can set up 2FA security once you are verified). Tick the acknowledgement boxes when you have read the legal documents. When ready, press the ‘Create Account’ button.
  • Step 2: Verify your identity: All reputable brokers have verification processes in place. eToro is no exception. You will need to supply 2 scans: proof of identity and proof of address. Use a scan of your passport to get verified quick. You will receive an email once you are verified.
  • Step 3: Fund your account: Press the blue ‘Deposit Funds’ button. From Australian investors, eToro accepts AUD via bank transfer via POLi, credit/debit card, and PayPal. There is no deposit fee. 14 other currencies are accepted.
  • Step 4: Invest in Litecoin: Enter ‘Litecoin’ in eToro’s top search bar. Press ‘Trade’ to review your investing options. Trades are instantaneous and commission-free.

Where to Invest in Litecoin – Top Litecoin Brokers Australia

You can invest in Litecoin (LTC) via an exchange or a broker. Crypto exchanges tend to offer lower spreads on crypto, which means you might pay less on your transactions. But the downside with exchanges is that there is no safety net. Some exchanges (like the biggest, Binance.com) are in trouble with regulators. And to buy crypto from an exchange safely, you really need to store your purchases in your own crypto wallet. It can get complicated.

Use a broker instead. Brokers are set up for beginners, whereas exchanges are set up for experts.

If you are investing in Australia, a key consideration is finding a broker that takes Australian Dollars (AUD). As the fifth most traded currency in the world, you would not think that should be a problem.

But some brokers are limited in what countries they can serve. Many of the giant US brokers – such as TD Ameritrade, Fidelity and E*TRADE – can only accept US clients. Premium UK brokers Hargreaves Landsdown can only accept UK clients.

eToro, AvaTrade and Capital.com are 3 brokers with great reputations that welcome investors living in Australia. All 3 take AUD as a deposit currency. 

1. eToro – Best Overall Litecoin Broker

20 million investors from 120+ countries are signed up with eToro. Regulation is provided by the UK’s FCA, CySEC of Cyprus and ASIC of Australia. eToro is a reassuring and simple environment to begin your investing journey – with a super-clear interface, transparent fee structure and numerous ways to trade and learn.

No commissions are charged on most trades, although spread fees do apply to crypto transactions.

eToro accepts Australian dollars (AUD) as a deposit currency and offers 2 ways to trade Litecoin (LTC).

Litecoin (LTC) Investment

With eToro, you can invest in Litecoin in three ways:

  1. You can buy Litecoin (LTC) direct – and either leave it in your eToro account, store it in your eToro wallet or export it to an independent crypto wallet.
  2. You can trade Litecoin (LTC) as part of a currency pair.
  3. You can copy one of the eToro CopyPortfolio strategies that trades in Litecoin.

1. Buy Litecoin (LTC) direct with eToro

With eToro you can buy Litecoin (LTC) and actually own the stock.

eToro charges a typical spread of 1.9% on Litecoin (LTC).

You can go short on Litecoin too with eToro (if crypto CFDs are allowed in your country of residence, which they are in Australia).

Going short on a crypto involves using a CFD (Contract-For-Difference). eToro enacts this automatically. The advantage of a CFD is that you can leverage your trade. The disadvantage of a CFD is that you do not own the stock at any point – but, if you are going short, this should not pose a problem.

2. Trade Litecoin (LTC) with eToro as part of a currency pair

With eToro, you can trade Litecoin (LTC) with it making up one half of a ‘currency pair’.

Currency pairs are a forex device. Traders use pairs to bet on the relative strength of one currency vs. another. The most popular conventional currency pair globally is EUR/USD, which allows you bet on the relative strength of the Euro vs. the US Dollar.

When a conventional fiat currency is paired with a crypto (like Litecoin), the pair is called a ‘cryptocurrency cross.’

On crypto exchanges, crypto crosses are often used to exchange one currency for another. This means that you actually have to own one of the currencies, whether it is a conventional fiat currency or crypto (from your crypto wallet).

eToro offers the powerful advantage that you can trade a crypto cross without owning either of the currencies involved, or having a crypto wallet. You can simply a buy into the pair using your eToro funds (which are always stored as USD) and be exposed to the difference in price.

Crypto crosses give you a slightly more sophisticated way of investing in Litecoin (LTC) than simply buying (or shorting) stock. That is because you can take into account the relative strength of other currencies.

With eToro, you can trade Litecoin (LTC) vs. the Euro, British Pound, Australian Dollar, New Zealand Dollar, Canadian Dollar, Swiss France and Japanese Yen.

Say, for example, that you believe Litecoin (LTC) will rise in value against the Australian Dollar (AUD). Then you would ‘buy’ into the LTCAUD pair using your eToro USD funds. Pressing the black ‘B’ button takes you to your buying options.

If you believe, rather, that the AUD will rise in value vs. the price of Litecoin, you would ‘sell’ into the LTCAUD pair. Going short on cryptos requires entering into a CFD (contract-for-difference). This is permitted for Australian investors. To begin this process, press the ‘S’ button.

(In the image above, the ‘S’ button is greyed out. That is because the image was taken from a UK account. In the UK, CFD crypto trading is not allowed.)

The critical thing to understand about currency pairs is that the first currency mentioned is the base currency – and this is the currency you are betting will rise in value. Don’t get muddled up!

3. Invest in an eToro CopyPortfolio trading strategy that trades in Litecoin

A good way to spread your risk is to invest in one of eToro’s CopyPortfolios. These allow you to follow an eToro investment strategy and invest in a bunch of related stocks all at once. eToro provides a range of crypto CopyPortfolios.

With eToro’s CryptoEqual Portfolio, you can invest in a portfolio including Litecoin and other cryptos. The special thing about this particular CopyPortfolio is that it is arranged in proportion to the market capitalisation of each crypto; hence the name ‘CryptoEqual’. Litecoin comprises 3.61% of this portfolio currently.

Another eToro CopyPortfolio containing Litecoin (LTC) is called Napoleon-X. This portfolio uses AI to invest in a variety of crypto crosses, including LTC/USD. This portfolio currently holds 4.95% Litecoin (LTC).

Note that you will need a minimum of $1000 to invest in an eToro CopyPortfolio. You will also be exposed to the spread fee on any transaction. The spread fee is the difference between the buying and selling prices offered by eToro. Spread fees are used by all brokers to cover their costs. Using Litecoin (LTC) as an example, eToro explains spread fees here.

Features

You don’t have to go it alone with crypto trading with eToro. You can copy experienced crypto traders for free using eToro’s CopyTrader. CopyTrader allows you to allocate some of your funds to match, automatically and in real-time, the trades of a trader you have picked from the list available. These traders are other eToro users. You can review the performance of their portfolio, as well as see their appetite for risk. You can copy many traders at once.

For beginners, eToro’s CopyTrader offers a great way to learn the ropes of crypto trading.

Regulation

  • Cyprus Securities & Exchange Commission (CySEC).
  • Australian Securities and Investments Commission (ASIC).
  • Financial Conduct Authority (FCA).

The funds of eToro clients are held separately from eToro capital.

eToro Fees

Fee Type Fee Amount
Commission Fee 0% (for UK and European investors)
Spread Fee Variable dependent on asset
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 monthly fee applies after 1 year of inactivity 

 

Pros

  • 20 million existing investors in 120+ countries.
  • Regulated by FCA, CySEC and ASIC.
  • Takes AUD.
  • Offers 2 ways to trade Litecoin (LTC).
  • Wide choice of other crypto.
  • CopyTrader – learn from and copy experienced crypto traders.
  • CopyPortfolios – invest in dynamic crypto portfolios which include Litecoin, to spread risk.
  • No surprises with a clear fee structure.

Cons

  • No support for MT4 or MT5 platforms.

67% of retail investor accounts lose money when trading CFDs with this provider.

2. AvaTrade — Best MT4 & MT5 CFD Broker for Litecoin Australia

AvaTrade offers CFD trading only, which means it is suitable for investors with experience. Your account is managed on margin and instruments are traded at set amounts of leverage. Dive in with beginner-friendly eToro first.

AvaTrade offers a dedicated Australian website and takes AUD via bank transfer/credit card (e-wallets not available to Australian investors).

AvaTrade has a good name. The broker, established back in 2006, is regulated in 7 global jurisdictions and boasts a discerning user-base of 200,000 investors.

Litecoin Investment

You can trade Litecoin (LTC) with AvaTrade as a CFD (Contract-For-Difference). This means you can go short, as well as leverage your trade by 2x. AvaTrade charges a typical spread of 0.5% on Litecoin (LTC) transactions, as well as a small overnight fee.

AvaTrade does not offer Litecoin (LTC) as part of a crypto pair – but you can trade Bitcoin (BTC) against the US Dollar (USD) or Euro (EUR) at a competitive spread fee.

Features

Explore AvaTrade if you want to explore supplementary trading platforms. Like many brokers, AvaTrade offers access to third-party software which allows you to power up your trading toolkit. Perhaps get some experience first before you dive in!

  • MT4/MT5: advanced charting and transaction ordering.
  • ZuluTrade: copy trading from many signal providers.
  • DupliTrade: copy trading from a few, heavily-vetted signal providers.
  • AvaSocial: AvaTrade’s mobile-only social trading app.
  • AvaOptions: AvaTrade’s options trading platform (not for newbies).

Regulation

AvaTrade is regulated by the Australian Securities and Investments Commission, the British Virgin Islands Financial Services Commission, the Israeli Securities Authority, the Financial Sector Conduct Authority in South Africa, the Financial Services Agency of Japan, and the Central Bank of Ireland.

AvaTrade fees

Fee Type Fee Amount
Commission Fee NA
Spread Fee Variable dependent on asset
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $50 per quarter after 3 months inactivity

 

Pros

  • Accepts AUD.
  • 0.5% spread offered on Litecoin (LTC).
  • Clear interface shows you exactly what fees apply.
  • Many advanced trading platform options.

 

Cons 

  • Relatively-high non-activity fees.
  • CFDs and margin account only.

71% of retail investor accounts lose money when trading CFDs with this provider.

3. Capital.com — Established Broker for Litecoin Australia

Like AvaTrade, Capital.com specialises in CFDs, has over 200,000 users and welcomes investors from Australia. A Capital.com office was opened in Melbourne, Australia in September 2021.

A full range of assets in the form of forex, commodity, stocks (including ETFs) and indices is on offer.

Capital.com accepts AUD via Apple Pay, Maestro/Visa/Mastercard and bank transfer.

CFD trading involves leveraged trades and a margin account. This makes it suitable for more experienced investors. Newbies might be better advised to choose eToro, where a margin account arrangement is not used.

Litecoin

With Capital.com, you can trade Litecoin (LTC) crypto pairs. You can trade Litecoin/US Dollar, Litecoin/Bitcoin and Litecoin/Euro.

Litecoin/JPY, Litecoin/BYN and Litecoin/RUB are on their way.

Litecoin/USD is currently the seventh-most popular trading instrument on Capital.com, with a typical spread of around 0.5%.

Very attractive spread fees are offered on crypto pairs by Capital.com. But the broker does all its trading via CFDs. So, if it is actual Litecoin (LTC) coin that you want to get hold of to use elsewhere, this is not the broker for you. With CFD trading you buy into a trading arrangement: you do not ever own the underlying stock.

Features

Capital.com offers a massive selection of currency pairs, good charting tools and its own help platform called Investmate.

Regulation

Capital.com offers global regulation:

  • Australia: Australian Securities and Investments Commission (ASIC).
  • UK: Financial Conduct Authority (FCA).
  • Belarus: the National Bank of the Republic of Belarus (NBRB).
  • Cyprus: the Cyprus Security and Exchange Commission (CySEC).

Capital.com fees

Fee Type Fee Amount
Commission Fee 0%
Spread Fee Variable dependent on asset
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0

 

Pros

  • Decent spread of regulation.
  • Excellent choice of CFD instruments.
  • Accepts AUD.
  • Offers Litecoin (LTC) pairs.
  • Good charting tools.
  • Investmate learning platform.

 

Cons

  • User interface can be a little overwhelming at first.
  • CFD trading only.

76.7% of retail investor accounts lose money when trading CFDs with this provider.

Invest in Litecoin (LTC) from Australia – Broker Price Comparison

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $5 $10 monthly (after a year of inactivity)
AvaTrade 0% $0 $0 $50 per quarter (after 3 months inactivity)
Capital.com 0% $0 $0 NA

Different Ways of Investing in Litecoin from Australia

You can buy the coin direct, trade using a currency pair, or invest in an eToro CopyPortfolio which includes Litecoin (LTC). You may even be able to find an ETF (Exchange Trade Fund) that holds Litecoin. eToro hosts 250 ETFs to browse through.

Investing in Litecoin from Australia – What are the Risks?

The price of Litecoin (LTC) tends to be influenced by three main factors:

  1. The price of Bitcoin (BTC). Bitcoin is currently hitting All-Time Highs (ATHs) but may, of course, take a tumble. Bitcoin does, however, entirely dominate the crypto sector, with approx. 40% market share.
  2. Crypto sentiment. Cryptos are increasingly being seen as a safe haven when the conventional stock market is in a bear phase. But crypto sentiment continues to be skittish. The sector is volatile. So many cryptos are vying for the top spot and new technological contenders come through every month.
  3. Unexpected variation. In 2017, the price of Litecoin rocketed because of (passing) interest from Chinese investors.

How to Invest in Litecoin with eToro

Here’s your four-step strategy to invest in Litecoin (LTC) with eToro:

Step 1: Open an account with eToro

  • Head to eToro.com. Fill out the short form, supplying username, email and password. Read and acknowledge the legal documents linked to. Press the blue ‘Create Account’ button.

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify your account

Verifying your identity is a standard part of signing up with a reputable broker. If a broker does not ask you to verify your ID, you should be worried! eToro makes the process as quick as possible. You will need to upload two types of scans: proof of identity (POI) and proof of address (POA). For POI, you can use an ID card or driver’s license. But, if you want to get verified swiftly, use a decent scan of your passport. 

To verify your POA, upload a scan of any of the following:

  • Credit card/bank statement.
  • Phone/utility bill.
  • Letter from your local council/municipality.
  • Tax bill/letter.

Step 3: Fund your account

Do not fund your eToro account until you have received confirmation that your account has been verified. You will be notified via email when your ID has been verified. Within your eToro interface, your picture will then feature a green tick. To deposit funds, press the ‘Deposit funds’ button towards the bottom left of your screen. 

You can deposit in up to 15 different currencies, including AUD. Credit card, bank transfer, PayPal and POLi is available for AUD deposits. Whichever fiat currency is deposited, all eToro accounts and trades are denominated in USD. No deposit fee is charged, but a currency conversion fee will apply. Note that, when you come to withdraw funds, eToro will attempt to transfer funds using the way you deposited funds in the first place. Plan ahead.

Step 4: Invest in Litecoin (LTC)

You can invest in Litecoin (LTC) with eToro by buying Litecoin stock, by trading a Litecoin currency cross, or by investing in an appropriate eToro CopyPortfolio. Note that no commission fee applies, but a spread fee does for all transactions (as it does with most brokers).

The quickest way to review your Litecoin (LTC) purchasing options is to search ‘Litecoin’ in the top search toolbar:

Depending on where you are based geographically, you can also go short on Litecoin (LTC) using a CFD. This means you can leverage your transaction, but using a CFD you will not own any underlying stock.

Find CopyPortfolios by pressing the ‘CopyPortfolios’ button on your left toolbar:

Conclusion

eToro has attracted a massive following of 20m+ investors for a reason: investing with eToro is safe and straightforward.

Trading Litecoin (LTC) from Australia, for example, with a crypto exchange can be totally daunting for the newcomer. eToro offers the security and convenience of using a regulated broker instead.

eToro is highly regulated and makes it easy for the newbie to learn the ropes with a virtual portfolio you can practise with as well as extensive learning materials – plus CopyTrader and CopyPortfolios for copying more experienced investors. AvaTrade and Capital.com offer strong CFD Litecoin (LTC) options for the more experienced trader. But, if you want to keep things simple, try out eToro.

#1 Broker to Invest in Litecoin – eToro

FAQs

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About Jules Blundell PRO INVESTOR

Jules is an experienced finance writer. He leverages his First Class degree from Cambridge University and his time at banks such as Goldman Sachs, Credit Suisse First Boston and Deutsche Bank to crunch complex financial topics for easy, educational reading.

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