Quick summary: Our recommendation is to use eToro to short Litecoin. They have the most popular cryptocurrencies on offer, great support, and have an easy system for shorting cryptocurrencies in general.
While there are a lot of options out there for buying LTC, shorting is a different story. Luckily for us here in Australia, we do have a few crypto brokers and exchanges that allow for CFDs and shorting.
One of those brokers is eToro, which we’ll be using for this guide. Let’s get started!
How to Short Litecoin in Australia
A quick recap first on what shorting actually is: The main objective of shorting or short selling is to make a profit (of course). The idea is to sell a stock/cryptocurrency hoping it will drop in value so you can buy it back later for cheaper, thus creating a net profit.
Shorting Litecoin can be done in 4 easy steps:
1. Choose a crypto exchange
As mentioned before, for this guide we’ll be using eToro as they offer the ability to short the most common cryptocurrencies.
You can, of course, use any other crypto broker to follow along, they all work very similarly.
2. Create an account on the cryptocurrency trading platform
Let’s start with just signing up with eToro.
The sign-up process is very easy and quick, as is the verification that needs to be completed afterwards so you can get started.
3. Funding your eToro account
Next is funding your account. You have several options when it comes to depositing AUD into your eToro Account. These include a bank transfer, credit card, debit card, PayPal, and more.
4. Short Litecoin
Now for the actual shorting:
- Starting off at the search bar at the top, find Litecoin by entering the name or symbol.
- Then on the crypto page/section, on the right side, hit the TRADE button to enter the trading interface.
- At the top of the trading interface: Click on sell to short sell the stock.
- Enter the amount for which you want to sell Litecoin and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Litecoin has dropped, go to your Portfolio, find the Litecoin trade, and click on the red cross to close the trade.
If your assumption/prediction was right, then the profit will be added to your account after closing the trade. If you were wrong on the other hand, you’ll incur a loss which will be debited from your eToro account.
Congratulations, now you know how to short Litecoin!
Disclaimer: Trading, investing, and dealing with digital and cryptocurrencies might involve a lot of risks. Their prices are volatile and performance is unpredictable. Their past performance is no guarantee of future performance.
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Where to Short Litecoin (LTC)
Aside from eToro, the other major exchange you can use is Binance.
While Binance tends to be a bit more complex compared to eToro, they do have more cryptocurrencies on offer.
Frequently Asked Questions
Can I short Litecoin on Binance?
Yes, you can short Litecoin on Binance. They have over 300 cryptocurrencies on offer and specialise in the crypto market. They also have a great app and competitive fees.
Charlie Lee has created Litecoin, a peer-to–peer cryptocurrency. The Bitcoin protocol was the basis for its creation, but it uses a different hashing algorithm. Litecoin uses a memory intensive Scrypt proof-of-work mining algorithm. Scrypt can be used to mine the coins on consumer-grade hardware like a GPU.
Investopedia says that Litecoin is a cryptocurrency which evolved from Bitcoin. Charlie Lee, a former Google employee and Director Engineering at Coinbase was the creator of Litecoin. Litecoin is the first to alter Bitcoin. The biggest difference between Litecoin and Bitcoin is the time it takes to generate a transaction or block.
Litecoin is not available to miners who use hardware to manage Bitcoin's network. Because these mining conglomerates cannot swap to another coin to maximize their profits, it keeps Litecoin from larger mining conglomerates. Investopedia said that Litecoin is also more accessible because it has more coins in circulation and larger blocks.
Litecoin has a much faster transaction speed than Bitcoin. However, there are a few other characteristics investors need to be aware of before trading. Due to its ability to transact faster, Litecoin can handle greater volumes of transactions than Bitcoin. However, if Bitcoin tried transacting on the scale of its altcoins a code update is required. Litecoin's blocks are larger but have more 'orphaned block'. The risk of double spending attacks is reduced by Litecoin's faster block time. This theoretically applies to both networks with the same hashing powers.
Litecoin takes 2.5 minutes to confirm transactions, compared with Bitcoin's 10 minutes. The Litecoin network has a cap of 84,000,000 currency units.
Many popular alternative currencies to Litecoin have been inspired by it (e.g. Dogecoin was inspired by its Scrypt algorithm to stop ASIC miners from mining the coins. Scrypt ASIC is expected in the mass market by the end, however.
Litecoin launched in 2011. In 2011, Litecoin was launched. It has performed poorly against bitcoin in price over the last 11 years. This could be due to the rise of other cryptocurrencies, which have new utility like smart contract, DeFi and GameFi, governance and much more. Litecoin has a tendency to retain its value well and experiences lower volatility when it matures, especially when compared against meme coins.
Market watchers monitor the price of Litecoin in 2025. Based on historical performance, Litecoin is able to track the overall cryptocurrency marketplace. Litecoin tends upwards as the price of bitcoin and overall crypto market caps go up.