Altcoin
Also called: alt · alts · alternative coin
Definition
An altcoin is any cryptocurrency other than Bitcoin, a broad category that includes Ether, Solana, stablecoins, exchange tokens and memecoins.
How altcoin works
The name comes from "alternative coin", because early projects were alternatives to Bitcoin. Today the term is used loosely. Some traders exclude stablecoins and only mean volatile coins, while others use "alts" for anything that is not BTC or ETH.
Altcoins range from large networks with years of history and deep liquidity to tiny tokens launched last week. The smaller the market capitalization and trading volume, the more the price can swing on a single large order, and the higher the risk that a project fails or a team sells its tokens.
Many altcoins tend to move in the same direction as Bitcoin, often with bigger percentage swings both up and down. Periods when altcoins outperform BTC are popularly called "altseason", but they are not regular or predictable. Before buying an altcoin, check its circulating supply, unlock schedule, where it is listed and how much it trades each day.
Example
Suppose BTC falls 8 percent in a day. A mid-sized altcoin that often moves with about 1.5 times Bitcoin's swings might fall around 12 percent, and a small altcoin could drop 20 percent or more. If you held 1,000 USDT in that small coin, a 20 percent drop leaves 800 USDT, and you would need a 25 percent gain just to get back to 1,000 USDT.
Common mistakes
- Buying an altcoin only because its price per coin is low, without comparing market capitalization.
- Assuming every altcoin will recover after a crash; many never return to earlier highs.
- Ignoring liquidity, then finding that selling a large position moves the price sharply against you.
Learn and practise
FAQ
Is Ethereum an altcoin?
Technically yes, because it is not Bitcoin. In practice many traders treat ETH as its own category and use "altcoin" for coins beyond BTC and ETH.
Are stablecoins altcoins?
Under the broad definition they are, but most people do not call USDT or USDC altcoins because they are designed not to fluctuate.
What is altseason?
Altseason is a slang term for a period when many altcoins rise faster than Bitcoin. It is a description of past market phases, not a scheduled event.