How To Buy Litecoin in Australia
Alright, so you want to buy some Litecoin. First things first, a quick crash course on buying crypto in general.
Cryptocurrencies are bought through exchanges. Exchanges are platforms you need to sign up for (like forums/apps or any other website with user accounts). Once you’ve signed up, you can log in, deposit credits/money (preferably AUD) into your account. And then you can use that money to buy cryptocurrencies on the platform/exchange.
In Australia, we have quite a few options when it comes to cryptocurrency exchanges. The majority, however, only support a handful of coins, these are usually the bigger ones like BTC (Bitcoin) and ETH (Ethereum).
Long story short, our favourite Australian platform at the moment is CoinSpot, it’s easy to sign up, you can use AUD, and they have 100+ coins available for you to purchase (including Litecoin).
We’ve laid out the steps on how to get started below!
How To Get Started
Setup Your Account
As mentioned above, Coinspot is our go-to for trading cryptocurrencies in Australia, definitely if you're starting out. It's the most trustworthy exchange available and it makes trading buying, selling and switching coins incredibly easy.
After creating your account the first thing you'll want to do is Enable 2FA (2-factor authentication, adds an extra step for logging in to your account, very easy to setup), you should see the message below at the top of your page while on the dashboard.
Verify Your Account
Before you do anything on CoinSpot you'll have to verify your account.
Click top right on Account > Verification
First, you'll have to verify your email and mobile number before continuing with the verification process.
You will then have to fill in all of your personal information including documents, don't be alarmed uploading this information, every exchange requires it. It's to ensure your safety and make everyone on the platform accountable.
Connect Bank Account
You'll need to connect up your bank account if you want to buy coins on the platform.
Click top right on Account > Bank Details
Fill in the required bank information.
Once your account is verified and you've added your bank account details you can start buying and selling cryptocurrency.
Go to Buy/Sell
This page lists all the coins that CoinSpot has available (which is a lot). Simply click on "Buy" and input the amount of the coin you want to purchase or the amount of AUD you want to spend.
We highly suggest paying with POLi as it allows for near-instant transactions.
Easy as that! You now have bought some cryptocurrency. We highly recommend moving your cryptocurrency to a hardware wallet if you are planning on holding it for a while. If you are planning on day trading, or trading fairly regularly we suggest keeping it on the CoinSpot platform.
Where To Buy Litecoin
We highly suggest using CoinSpot to buy and sell Cryptocurrency. We've done a comparison of the top 10 exchanges in the world for Australians to use and CoinSpot clearly deserves the top spot, you can see our full CoinSpot review here.
CoinSpot is by far our most recommended exchange for Australians. They have an easy to use platform and an online wallet that makes trading simple for new users. They have a strong sense of community and are constantly posting updates and adding new coins to their portfolio. This is the most trusted exchange in Australia and arguably the best exchange globally.
What is Litecoin?
Litecoin is one of a globally successful altcoin modeled after Bitcoin technology. They operate on a peer-2-peer based system that gives the user near instant transactions at an almost cost-free expense. They are a worldwide cryptocurrency, one of the top five of the entire industry.
The major benefit of using Litecoin, are lighting fast transaction confirmation and better storage capabilities. The coin is also the number one math-based currency in the industry to date as well. Litecoin is not by any means looking to replace Bitcoin. Instead, Litecoin is looking to complement the world’s fastest-growing cryptocurrency. As Litecoin puts it best, they are the silver to Bitcoin’s gold. They have proven time and time again, to be a sufficient, reliable and proven medium of commerce.
What are Their Future Goals?
For one, Litecoin is looking to set the tone for atomic swaps. Developments all over the world are ready to enable Litecoin based swaps. Many transactions have already been completed. They are also developing MAST technology, it will allow the feature of lump transfers by way of Merkle root. And lastly, they are creating covenants, which will play a massive role in the entire ecosystem from here on out. This will essentially give users the ability to keep their coins locked together, so they don’t get all jumbled or mixed up.
Who is Litecoin for?
The creator of Litecoin, Charlie Lee – has basically explained that Litecoin is for people making everyday payments and purchases, whereas Bitcoin is more of a type of stored value. Litecoin will be less secure than Bitcoin, but transactions can happen much faster and cost much less. Litecoin provides a service to a specific niche, people who are looking to use it for everyday use and Bitcoin for storing the currency prior to needing to be used.
It’s for anyone looking for an open-sourced, worldwide payment system. It has faster block generation then Bitcoin, so it allows for more rapid use. It’s no different than gold and silver. In the past, silver was used primarily for goods and services and gold would be for keeping and raising in value. At the time of writing, Litecoin is the fourth largest cryptocurrency in the world by market cap. The only being ahead of it, Bitcoin, Ethereum, and Ripple. You can of course buy Litecoin everywhere, if you’re in Canada for example, have a look here on how to buy Litecoin in Canada.
Litecoin vs. Bitcoin
The blockchain used by Litecoin can handle a significantly higher amount of transactions per second then Bitcoin. This is because of the generation of more frequent blocks. It allows the network, the ability to support more transactions without needing to change any software, this will hold true in the future as well. Merchants can, therefore, count on cheaper confirmation times and at the same time, have the ability to wait for more confirmations when larger ticket items are being sold.
As of now, miners are given 50 new Litecoins per block. The amount is cut in half about every four years or so. As of now, they are scheduled to create another 84 million Litecoins, which is more than 4 times the current amount the coin has. Bitcoin on the other hand only has about 21 million in circulation.
Other differences are in regard to the algorithm used, whereas Bitcoin uses the SHA-256, Litecoin uses a specialized script to run the system. The mean block time for bitcoin is 10 minutes, Litecoins is about 2.5, which is considered a significantly shorter time. The block reward details are also majorly different as well, Litecoin is halved for 840,000 blocks and bitcoin for every 210,000. They are both the same in initial rewards, however, as they both offer 50 BTC. But the current block reward for Bitcoin is only 25 BTC, which is half of Litecoins 50 LTC.
They also use different block explorers, Bitcoin uses Blockchain.info and Litecoin uses blockexplorer.com. Finally, LTC has a market cap about 1/20th of Bitcoin, though in recent times it has been catching up to its big brother.
Another aspect that is greatly different between Bitcoin and Litecoin are the Transaction Differences. Litecoin confirms transactions at a significantly higher rate then Bitcoin. The rules are as follows for Litecoin:
- Litecoin is able to handle a high volume of transactions because it generates blocks faster than Bitcoin. Bitcoin would have to go through massive updates to compete with Litecoin’s transaction speeds. The code that everyone on the Bitcoin network is running today would have to be changed.
- Bitcoin’s advantage is that their blockchains are proportionately smaller than Litecoin’s and contained more orphaned blocks as well.
- Faster block time of Litecoin however, decreases the chance of double spending or attacks. This is only theory however, in regard to both networks having the same hashing power.
- With Litecoin, merchants would have to wait only 5 minutes for two confirmations, whereas Bitcoin would have to wait 10 for just one.
The faster block time or transaction time is touted as moot points by many who use Bitcoin. Many merchants allow for zero-confirmations for many types of purchases. A transaction is typically instant, it is then confirmed by the network.