Altcoin
In short: Altcoin , short for “alternative coin”, is the name for all cryptocurrencies other than Bitcoin.
Altcoin, short for “alternative coin”, is the name for all cryptocurrencies other than Bitcoin. It covers everything from large smart contract platforms such as Ethereum to exchange tokens and memecoins, although some people leave stablecoins out of the category.
Why it matters
Most assets listed on a crypto exchange are altcoins, and they differ enormously in purpose, technology and risk. Some run their own blockchains, some are tokens issued on another network, and some are forks or close copies of Bitcoin’s code. Many altcoins have a small market capitalization and thin order books, so their prices can swing far more sharply than Bitcoin’s, and some projects are abandoned or turn out to be scams. Traders often judge altcoin performance against Bitcoin, for example by watching Bitcoin dominance.
Example
A trader who holds only BTC decides to diversify. On a spot market, they exchange part of it for ETH and a smaller amount of a newer token that powers a gaming network. Both purchases are altcoins, but they are very different. ETH belongs to a large, established network, while the gaming token comes from a much smaller project that typically carries more risk and less liquidity.