Altcoin
Altcoin (from alternative coin) is any cryptocurrency other than Bitcoin. The term originated as a way to describe alternatives to Bitcoin and covers thousands of projects, ranging from large-cap assets (Ethereum, Solana, BNB) to lesser-known tokens with minimal liquidity.
Some market participants also exclude Ethereum from the definition, treating it as a separate category. In practice, the term is used broadly to refer to all assets other than Bitcoin.
Characteristics of altcoins:
- Generally higher volatility than Bitcoin
- Higher growth potential due to lower market capitalization
- Higher risk of losing value, potentially down to zero
- Lower liquidity for assets outside the top 20