Altcoin Definition
In simple terms, an altcoin is any cryptocurrency that isn’t Bitcoin. The name literally means “alternative coin,” and it covers the thousands of digital currencies that popped up after Bitcoin paved the way.
Bitcoin may have been the original crypto, but it’s far from the only one. Plenty of altcoins were created to do things Bitcoin either can’t do—or doesn’t do all that well. Some aim for faster transactions, others are built for smart contracts, and some focus on privacy or niche features.
Technically, altcoins include everything that’s not Bitcoin... though some people like to carve out Ethereum as its own thing, too.
Bitcoin purists will even argue that Bitcoin isn’t just another cryptocurrency—it’s in a category of its own. Whether or not you buy into that idea, the general catch-all for the rest of the crypto market is still "altcoins."
A few big names you’ve probably heard of: Ethereum (ETH), Litecoin (LTC), and Solana (SOL). Ethereum stands out for introducing smart contracts—basically code that runs on the blockchain—opening the door for all kinds of decentralized apps (aka dApps).
Types of altcoins
Altcoins aren’t all cut from the same cloth. They fall into a few categories, each with its own quirks:
Payment tokens These are designed mainly for—you guessed it—payments. Think fast, borderless transactions. Critics sometimes argue they’re not "real" cryptocurrencies because they lean a bit more centralized than the ideal.
Utility tokens Utility tokens do something specific within their ecosystem. Need to pay for gas fees on a platform? That’s a utility token doing its job. They're kind of like arcade tokens but for crypto networks.
Governance tokens Holding one of these gives you a say in how a project runs. You might vote on fee structures, protocol upgrades, or other key decisions. It’s like a mini democracy—if everyone voting owned a piece of the system.
Memecoins These started as jokes... and then exploded. Dogecoin and Shiba Inu are the poster children here. No serious utility, just a lot of hype, memes, and surprisingly strong communities.
Stablecoins Stablecoins are pegged to traditional currencies like the U.S. dollar and try to stay, well, stable. They’re usually backed by real-world assets and don’t bounce around in price like most other cryptos. Some folks don’t even consider them “real” altcoins since their whole thing is not being volatile.
