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Altcoins - The Cryptocurrency World Beyond Bitcoin

2026-01-283 min read read

What are Altcoins

Altcoin is short for Alternative Coin, referring to all cryptocurrencies except Bitcoin. Ethereum is technically an altcoin in the broad sense, but it's often classified separately due to its market cap and influence.

As of 2026, tens of thousands of altcoins exist, each with unique technology and purposes.

Classification of Altcoins

Platform Coins

Native currencies of blockchain platforms that support smart contracts.

  • Solana (SOL): Processes thousands of transactions per second with low fees
  • Cardano (ADA): Academic research-based, phased development approach
  • Avalanche (AVAX): High scalability through subnet architecture
  • Polkadot (DOT): Multi-chain network connecting multiple blockchains

Payment Coins

Cryptocurrencies aimed at fast and cheap transfers.

  • XRP (Ripple): Specialized in international transfers between financial institutions
  • Litecoin (LTC): A lighter version of Bitcoin with faster confirmations
  • Stellar (XLM): Focused on remittances in developing countries and micropayments

Stablecoins

Cryptocurrencies pegged to fiat currencies, serving as base currencies on exchanges.

  • Tether (USDT): The most widely used dollar-pegged stablecoin
  • USD Coin (USDC): Issued by Circle, focused on regulatory compliance
  • Dai (DAI): Maintains dollar value through decentralized mechanisms

Meme Coins

Cryptocurrencies originating from communities and internet culture.

  • Dogecoin (DOGE): The first meme coin, famous for Elon Musk's support
  • Shiba Inu (SHIB): Token inspired by Dogecoin

Meme coins are priced based on community enthusiasm rather than technical fundamentals, so exercise particular caution when investing.

Utility Tokens

Tokens used for functional purposes within specific platforms.

  • Chainlink (LINK): Oracle connecting blockchain to external data
  • Uniswap (UNI): Governance token for the decentralized exchange
  • Aave (AAVE): Governance token for the decentralized lending protocol

Understanding Market Cap Rankings

Market Cap is calculated as current price × circulating supply. It's an important reference metric when investing in altcoins.

  • Large Cap: Top-ranked by market cap, relatively stable
  • Mid Cap: Growth potential and risk coexist
  • Small Cap: High profit potential, high risk

What is Alt Season

The cryptocurrency market has a phenomenon called Alt Season. It refers to periods when funds flow into altcoins as Bitcoin's market dominance decreases.

Typical market cycle:

  1. Bitcoin rises first
  2. Funds move to large altcoins like Ethereum
  3. Rally spreads to mid and small-cap altcoins
  4. Market-wide correction after overheating

What to Consider When Investing in Altcoins

Project Verification

  • Review the Whitepaper and roadmap
  • Research the development team's background and activity
  • Check GitHub code update frequency
  • Verify actual use cases and partnerships

Risk Management

  • Diversify investments to spread risk
  • Recognize that lower market cap means higher volatility
  • Low liquidity coins may be difficult to sell
  • Beware of scam projects (unrealistic returns, anonymous teams)

Trading Checklist

  • Listed on major exchanges
  • Check 24-hour trading volume
  • Review order book depth
  • Check token unlock schedules

Track Altcoins on BitInsight

On BitInsight, you can view major altcoins' real-time prices, price comparisons across exchanges, and market data at a glance.


Next: Crypto Wallets - How to Safely Store Your Assets