Altcoin: what it is and how it differs from bitcoin

An altcoin (from “alternative coin”) is the common name for any cryptocurrency other than bitcoin. They include large smart contract platforms, tokens of DeFi (decentralized finance) apps, stablecoins and memecoins. Some altcoins have real use and active users, while others were created purely for speculation. Altcoins are usually priced in a pair with bitcoin or a stablecoin.

Altcoins generally have higher volatility and lower liquidity than bitcoin, which increases price swings and the risk of slippage on orders. Smaller projects are more likely to vanish from the market or fall victim to manipulation. It is a mistake to assume that a low price per unit means a “cheap” coin: the scale of a project is shown by its market cap, not by the price of a single coin.