BUYING ALTCOINS
IN AUSTRALIA

You can buy altcoins in Australia by setting up an eToro account and selecting the coin you wish to purchase. Alternative coins are any cryptos established after Bitcoin was created. Altcoins aim to increase the speed and performance of transactions, and heighten privacy for their users.

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In Australia, you can buy altcoins by creating an eToro trading account and choosing the coin you wish to purchase. Make sure that you research which coin will work best for you, as each type of altcoin offers different benefits. 

For decades, investors have stuck to the tried-and-tested strategy of building their wealth from things such as shares, commodities, property, term deposits and high interest savings accounts. 

However, with the rapid — and disruptive — rise of blockchain technology and Bitcoin over the past decade, there’s a new player in town: cryptoassets. They have made huge headlines, soared and plummeted in value, and ultimately brought a new audience to the investment world.

While Bitcoin is the most well-known cryptocurrency, there are many alternative coins, or altcoins, that you can invest in. So, how can you dive into crypto and learn how to trade altcoins in Australia? We’ll first define what altcoins are and how they work, and then share insights into some of the most popular altcoins in circulation today.

What are altcoins?

Altcoins, or alternative coins, are cryptos that were created following the success of Bitcoin. Unlike Bitcoin, the first and most well-known crypto, altcoins have different features and functions that make them unique and attractive to investors and users.

Some common examples of altcoins include Ethereum, Litecoin and Dogecoin. These are often built on different blockchain technology from Bitcoin, allowing them to offer various features and benefits. For example, some altcoins have faster transaction times or lower fees than Bitcoin, while others have unique features such as smart contract functionality or anonymity.

Additionally, altcoins often have different market values and levels of popularity from Bitcoin, making them more or less appealing to investors depending on their goals and strategies.

Overall, altcoins are an important part of the crypto landscape, offering various options and opportunities for investors and users. Whether you are new to the world of crypto or an experienced trader, learning about altcoins and how they differ from Bitcoin can help you make informed decisions and diversify your investment strategy.

Why are altcoins becoming popular?

Altcoins are becoming popular for a few different reasons, but particularly because there is a high cost barrier of entry to Bitcoin, at least if you want to own a ‘whole’ coin. As of March 2025, the value of a single Bitcoin has exceeded AU$130,195.

For those with an aggressive trading strategy, the high volatility and low value of some cryptos can be just as attractive as investing in microcap penny stocks on the ASX.

Can you purchase altcoins in AUD?

The good news for Australian investors is that altcoins can be purchased in AUD in a very simple, straightforward manner, depending on the platform you are using to trade crypto.

Despite the huge popularity of traditional stock market investing, it is — by its very nature — geographically siloed. This means that it is very easy to start trading on the ASX if you are Australian, but it can be more complicated to invest in, for example, the New York Stock Exchange (NYSE). This is because you may need to create a separate international trading account. 

Online platforms can make it simpler, but there are still time differences, the exchange rate of the USD, and other factors to consider.

In contrast, crypto is not restricted by geography. As the altcoins are not ‘companies’ being listed on the ASX, they can be bought and sold anywhere, anytime, through a variety of platforms that support crypto trading.

Should you purchase altcoins using crypto?

While it is true that you can purchase altcoins using crypto, whether or not you should do it will depend on a number of factors, particularly relating to the flexibility of your chosen platform.

• You will need to ensure that the platform you are using to trade crypto allows you to purchase altcoins using another crypto that you already hold.
• If permitted, the next step is finding out whether the platform allows you to make a purchase with the coins you currently hold.
• Most platforms will allow you to buy altcoins with two of the biggest cryptos in circulation: Bitcoin and Ethereum.
• In some cases, Ethereum may be the better option as it tends to be cheaper to transfer between exchanges than Bitcoin.
• For lower-value altcoins, making a purchase with your low-value coins could be the best way to purchase. This is because many trading platforms only show crypto to eight decimal places, which can make it very expensive or even impossible to purchase low-value coins with Ethereum or Bitcoin.

Why would you decide to buy altcoins with cryptoassets?

There are many reasons why you might decide to buy altcoins with cryptoassets. Maybe you do not want to wait a day for your bank details to be approved on a crypto trading platform — especially if you predict that the price of your chosen altcoin will surge in the next 24 hours. 

Or perhaps you want to stick to your initial strategy of only investing a specific amount of money into crypto, in which case you could use the profits from one altcoin trade to purchase a new cryptoasset.

Where can you buy altcoins?

Thanks to altcoins such as Dogecoin making global headlines and a wave of new retail investors looking into cryptoassets, you can now buy altcoins from a number of different platforms.

Before diving into a trading platform, do your research to ensure that it:

• Has the altcoin you want to buy.
• Supports your preferred way to make a deposit.
• Is a reputable provider.
• Clearly states any fees and rates associated with altcoin trading.

Cryptoasset trading platforms are good options for traders of varying investing experience due to:

• Their ease of use.
• Staking and leveraging options. 
• The wide range of cryptoassets available.

There are also plenty of guides to help you start investing in altcoins and keep on top of the latest crypto news.

What to consider before trading altcoins

Before you start trading altcoins, it is important to conduct due diligence to ensure that you select a cryptoasset to suit your financial goals, risk appetite and portfolio. 

Market Capitalisation

Market capitalisation can be an indicator of an altcoin’s growth potential and stability. The higher the market capitalisation, the more stable the altcoin is likely to be.

Altcoin Purpose

Before you start investing in an altcoin, it is a good idea to familiarise yourself with the purpose of the altcoin, the underlying technology used and its potential future prospects. Altcoin creators typically release this information in documents known as “white papers”.

Past performance

Although past performance is not an indicator of future performance, it can be useful for gaining an understanding of the altcoin’s history, any volatility it has experienced, and how demand has changed over time.

Compare similar altcoins

While there are many different altcoins available, you will find that some have been created with similar purposes or technology. To help you compare and contrast altcoins, look at those operating in the same categories or with similar technology, their white papers and their performance.

What are some popular altcoins?

There are a few popular altcoins that might be of interest to your strategy, including Ethereum, Cardano and Iota. Even if the altcoin you’re interested in is not a large one, this information will give you greater insight into cryptoassets and whether this is the right way for you to invest.

Just like investing in the stock market, your strategy will be unique to your own investment goals and risk tolerance. Here are more details about the most popular altcoins. 

Coin	Details
Ethereum	Ethereum was launched in 2015 as a decentralised open-source software platform.  The platform has since been used in the creation of non-fungible tokens (NFTs), decentralised finance (DeFi) and various other applications, from advertising to gaming. While the platform encourages outside developers to launch their own decentralised applications and cryptoassets, Ether is its native currency.
Cardano	Cardano began life in 2015 as a way for its developer to ultimately provide banking services to the unbanked.  It drew immediate attention as it was created by Ethereum co-founder Charles Hoskinson, who declared that Cardano would be an updated version of Ethereum.  The Cardano blockchain platform launched in 2017 and its crypto is called ADA (named after the 19th-century mathematician Ada Lovelace).
Binance Coin	Binance Coin is an altcoin that originally ran on the Ethereum network but has since become the Binance blockchain’s native coin.  It was created in 2017 as a “utility token” for discounted trading fees, but in the years since, it has become a way for people to pay for everything from travel bookings to financial services.
IOTA	IOTA is a distributed ledger that was created to service the growing “Internet of Things” ecosystem.  It records and executes transactions between devices, and its crypto is known as MIOTA (or sometimes just IOTA).

Cryptoassets are not for everyone, but if you are interested in expanding your portfolio with an intriguing — and often volatile — market, then altcoins could be the perfect match for your investment strategy.

Final thoughts

Investing in altcoins in Australia is a good alternative to buying high-priced Bitcoin. Altcoins can be good investments for those looking to trade cryptocurrency, or as ways to purchase goods online through secure, decentralised networks.

Although researching altcoins can be time consuming, you should always gather as much information as possible to help inform your decisions.

Learn more about altcoins and cryptocurrency on the eToro Academy.  

FAQs

How are altcoins created?

Most altcoins are created through Proof of Work (PoW) or ‘mining’ – a method by which systems solve difficult problems to create blocks and generate new coins, similar to Bitcoin.

How do altcoins work?

Altcoins are a peer-to-peer internet currency. There are thousands of altcoins and all are unique in their own way. Like Bitcoin, altcoins offer a distributed ledger that utilises the blockchain to allow and record crypto transactions.

How do altcoins gain value?

Similar to currencies, altcoins gain value through the level of community involvement, such as user demand, scarcity or the coin’s function. Altcoins are a volatile currency and can rise and fall based on changing government regulations and other external factors.

Where do you store altcoins?

Like Bitcoin, altcoins can be stored in physical or digital wallets. Physical wallets or ‘cold’ wallets are physical tools for keeping crypto purchase records. Digital wallets or ‘hot’ wallets are pieces of software that store your crypto either on a desktop, mobile or online.