Glossary

Altcoin

Plain-language definition Crypto glossary

Key takeaways

An altcoin is any cryptocurrency other than Bitcoin — the word is short for "alternative coin."
The category covers everything from major smart-contract platforms to small, speculative tokens.
Altcoins arose to pursue goals Bitcoin was not designed for: programmable contracts, faster or cheaper transactions, or stronger privacy.

Definition

An altcoin is any cryptocurrency other than Bitcoin. The word is a contraction of “alternative coin” and covers everything from major smart-contract platforms to small, speculative tokens.

How it works

Altcoins arose because Bitcoin was designed primarily as digital money, and developers wanted networks with different goals: programmable smart contracts, faster or cheaper transactions, stronger privacy, or specialised use cases. Some altcoins are independent Layer 1 blockchains, others are tokens issued on top of an existing platform, and some began as forks of Bitcoin’s own code.

Why it matters

Altcoins make up the large and diverse part of the market beyond Bitcoin, and they are where most experimentation happens. That diversity also means a wide range of quality and risk, from established networks to projects with little track record.

Example

Ethereum, Solana and XRP are all altcoins, as is every stablecoin and meme coin.

FAQ

Frequently asked questions

Is Ethereum an altcoin?

Yes. By the standard definition every cryptocurrency except Bitcoin is an altcoin, including large platforms like Ethereum, though some people informally treat the biggest coins as a separate tier.

Are altcoins riskier than Bitcoin?

Generally they are more volatile and less liquid than Bitcoin, and smaller altcoins especially can carry significant risk. Risk varies widely across the category, from established networks to micro-cap tokens.

How many altcoins are there?

Thousands, and the number changes constantly as new projects launch and others fade. They range from established networks to short-lived speculative tokens.