Crypto and derivatives · updated October 21, 2026
What is an altcoin and how is it different from Bitcoin
An altcoin is any cryptocurrency other than Bitcoin. The name is short for "alternative coin". Some have a clear job (Ethereum runs apps and smart contracts), others are copies with nothing new or purely speculative projects.
How it works
Altcoins usually start from an idea: faster payments, programs that run on a blockchain (smart contracts), payments between banks. Each has its own network, its own rules for creating coins and its own team. CoinMarketCap and CoinGecko list tens of thousands of coins, but only a few dozen have serious market value and trading volume.
Worth knowing
As a rule, the smaller an altcoin, the harder its price swings in both directions. Many coins that were popular a few years ago have lost more than 90% of their value or disappeared.
When altcoin can fool you
Thin trading: on small coins, one large sale can crash the price. Coins held by a few people: if the founders own a big share of the supply, they can sell at any time. Promised returns: a project that guarantees big gains is, most of the time, a trap.
Related terms
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Questions about altcoin
Is Ethereum an altcoin?
Technically yes, any coin other than Bitcoin is an altcoin. But Ethereum is the second-largest blockchain and does a different job: apps and other coins run on it.
How do I pick an altcoin?
Look at what the project does, who uses it, how many coins exist and who holds them, and whether it trades on large, regulated platforms. If you cannot explain in one sentence what it is for, stay away.
These explanations are for information only. They are not a recommendation to buy or sell.
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