Beyond Bitcoin lies a vast ecosystem of alternative cryptocurrencies. Here's what you need to know.
What are Altcoins?
Altcoins are any cryptocurrencies other than Bitcoin. The term means 'alternative coins.' There are thousands of altcoins with various purposes.
Categories of Altcoins
Platform Coins
Smart contract platforms: Ethereum, Solana, Cardano
DeFi Tokens
Decentralized finance: Uniswap, Aave, Maker
Stablecoins
Pegged to fiat: USDT, USDC, DAI
Meme Coins
Community-driven: Dogecoin, Shiba Inu
Utility Tokens
Specific use cases: Chainlink, Filecoin
Investment Considerations
- Higher risk than Bitcoin
- Greater potential returns (and losses)
- Research team, technology, tokenomics
- Many projects fail