How to Buy Litecoin (LTC) in Australia

If you're new to cryptocurrency and curious about Litecoin (LTC), you've come to the right place. As one of the earliest alternatives to Bitcoin, Litecoin offers a faster and more affordable way to handle digital transactions. This beginner's guide will explain what Litecoin is, how Litecoin works, its key benefits, various investment options, and the steps to get started with CMC Invest. 

Whether you're exploring digital currencies for the first time or looking to diversify your portfolio, understanding Litecoin can position you well in the evolving crypto market. We'll also cover the potential rewards and risks to help you make informed decisions.

What is Litecoin?

Litecoin (LTC) is a peer-to-peer cryptocurrency and decentralised digital payment network created in 2011 by Charlie Lee, a former Google engineer.  Often described as “the silver to Bitcoin’s gold”, it was designed to support faster digital payments than Bitcoin, with LTC used to transfer value across the network. As one of the earliest altcoins (alternative to Bitcoin), Litecoin holds a solid position in the crypto market, with a market capitalisation of around $5.4 billion and ranking #21 among cryptocurrencies as of January 2026.

While Bitcoin processes blocks every 10 minutes, Litecoin generates them every 2.5 minutes, enabling faster confirmations. Its total supply is capped at 84 million coins, four times that of Bitcoin's 21 million, promoting scarcity while keeping entry accessible for new investors.

How does Litecoin work? 

Litecoin operates on a blockchain, a distributed ledger that records all transactions transparently and securely.  Transactions on the network are validated by miners using a proof-of-work (PoW) consensus mechanism. Unlike Bitcoin's SHA-256 algorithm, Litecoin uses Scrypt, which is memory-intensive and was designed to be more accessible for mining with standard hardware, though it is now mined using ASICs (Application-Specific Integrated Circuit). Once validated, the transaction is added to a block and appended to the chain, ensuring immutability.

Key Functions

Litecoin's core strength lies in its utility for quick, low-cost payments. Key functions include:

• Peer-to-peer transactions: Enables instant, near-zero-cost transfers without intermediaries, ideal for cross-border remittances.

• Retail and gaming payments: With sub-cent fees and 2.5-minute blocks, it's popular for micropayments in online stores, casinos, and games.

• Liquidity for trading: Serves as a bridge asset on exchanges for efficient value movement between platforms.

• Mining and security: Miners secure the network via PoW, rewarding participants while maintaining decentralisation

Why invest in Litecoin?

Investing in Litecoin offers several compelling reasons for beginners, though it's essential to weigh them against risks. Here are six key factors: 

• Long-standing reputation: As one of the oldest cryptocurrencies, Litecoin has proven reliability and resilience through multiple market cycles. Its wide adoption across exchanges, wallets, and payment services further solidifies its position as a dependable asset in the volatile crypto space. 

• "Digital silver" positioning: Litecoin is the silver to Bitcoin’s gold, a faster, cheaper alternative for transactions, providing diversification within crypto. Litecoin excels in enabling quick and cost-effective transfers, making it ideal for real-world use cases like micropayments. 

• Diversification: Litecoin can behave differently from traditional asset classes (such as stocks, bonds or real estate). As a result, it offers diversification to investors wanting to hedge against risks in other parts of their portfolios.  

• Payment utility: Practical for everyday use, with low fees and quick settlements versus purely speculative tokens. 

• High liquidity: Easy to buy and sell on major platforms, including CMC Invest, with strong trading volume. 

• These attributes make Litecoin a balanced choice, but always consider market trends; its price often correlates with Bitcoin, offering exposure to broader crypto movements. 

Different ways to invest in Litecoin

There are several approaches to investing in Litecoin, each with its pros and cons. Here's a brief comparison of four key methods: 

• Buy Litecoin (LTC) directly: Buy and hold LTC via a broker such as CMC Invest. A flat brokerage fee of 0.9% applies to cryptocurrency transactions, and because cryptocurrencies are transacted in USD, an FX spread will also apply. 

• Buy a Litecoin ETF or trust: Gain direct exposure through investment products that may track Bitcoin Cash or broader cryptocurrency indices. These products are not broadly available at present and are subject to regulatory approval, product structure and jurisdictional rules. 

• Mining: A technically advanced way of earning LTC by validating transactions with specialized equipment. Ownership comes from newly minted coins, giving full control once rewarded, but requires ongoing hardware maintenance. 

• Crypto-related equities: Another way to invest in Litecoin indirectly is by buying shares in companies that are involved in the cryptocurrency industry, such as mining companies. However, this strategy could expose you to further company-specific risks that might not be directly tied to Litecoin’s price.  

How to buy Litecoin with CMC Invest  

If you’re an investor in Australia looking to buy cryptocurrency, CMC Invest offers access to Litecoin and a selection of other coins through its integrated investing platform, providing an accessible way to start investing. Below is a step-by-step guide for new and existing CMC Invest customers on how to invest in Litecoin: 

1. Open a CMC Invest account 

Get started by opening a CMC Invest account. You’ll get access to a wide range of investment products, including Litecoin and other cryptocurrencies like Bitcoin, Ethereum, and Solana, as well as traditional asset types. 

2. Opt-in for cryptocurrency investing 

Once your account is set up, you’ll have access to over 40,000 stocks and ETFs as standard. If Litecoin or other crypto interests you, you’ll need to opt in to access digital assets like Litecoin.

3. Research Litecoin 

Before investing, you’ll want to give yourself a solid base of understanding of Litecoin’s fundamentals and general market trends. CMC Invest has a range of educational resources and powerful charting tools to help investors make the best decisions for their portfolios. 

4. Start investing in Litecoin 

Once you’ve opted in, you can start buying Litecoin directly from the CMC Invest platform via the mobile app or desktop version. 

Risks of investing in Litecoin  

While Litecoin may have potential, cryptocurrency investments carry significant risks. Here are five key ones to consider: 

• High volatility: Cryptocurrency prices, including Litecoin, can fluctuate dramatically in short periods due to market sentiment, macroeconomic factors, and broader crypto trends. For example, it dropped 46% from its 2025 peak by early 2026. 

• Regulatory uncertainty: As Litecoin and other cryptocurrencies have gained popularity, they have faced regulatory scrutiny. Changes in Australian regulations could impact Litecoin's price and long-term viability as an investment.  

• Market competition: Numerous payment-focused cryptocurrencies, such as Bitcoin's Lightning Network, XRP, and Stellar, compete directly for adoption in transactions and remittances. This rivalry could limit Litecoin's growth if competitors gain more traction through faster innovations or broader integrations, reducing its relative utility and market share. 

• Correlation with Bitcoin: Litecoin's price can sometimes follow Bitcoin's price trends due to shared market dynamics and investor sentiment, limiting true diversification benefits within a crypto portfolio. 

• Loss of capital and tax implications: Investors risk losing some or all of their investment due to the speculative nature of cryptocurrencies, with no guarantees of recovery. In Australia, gains are subject to Capital Gains Tax (CGT). 

Conclusion 

 Litecoin is an established cryptocurrency that has historically been used for peer-to-peer transactions, with faster block times and generally lower fees than Bitcoin. Understanding how Litecoin works and the ways investors can gain exposure to it through platforms such as CMC Invest may help individuals assess its relevance to their own circumstances. As with all cryptocurrencies, potential benefits should be considered alongside the significant risks involved. 

If you’re ready to begin investing in Litecoin, sign up for a CMC Invest account and start exploring how this popular cryptocurrency could broaden your investment portfolio.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information and education purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment, tax or other advice on which reliance should be placed and is warranted to be complete, accurate, or timely. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.   

Investing in cryptocurrencies carries significant risks and is not suitable for all investors. You may lose all your money you paid. Consequently, you should consider the information in light of your objectives, financial situation and needs and do your own research. It’s important for you to consider the relevant Digital Assets Terms of Service and other associated disclosure documents on the CMC Markets Invest website before you decide whether or not to acquire any of the Cryptocurrencies. Please also note that you are not currently able to send Cryptocurrencies to or from your trading account, or use Cryptocurrencies purchased on CMC Markets’ Platform to pay for goods or services.    

The provision of cryptocurrency services and products will not be treated similarly to the provision of regulated financial services or products and you are not afforded the same client protection provisions offered by the Corporations Act 2001 (Cth) as you would trading regulated financial products or receiving regulated financial services. Cryptocurrencies are held with a sub-custodian.