What Is an Altcoin?
Altcoins are cryptocurrencies other than Bitcoin. Some also exclude Ethereum, since most cryptocurrencies are derived from either Bitcoin or Ethereum. Altcoins often use different consensus mechanisms and may offer unique features or use cases that set them apart.
Developers typically create altcoins to serve specific purposes or to improve upon limitations they see in existing cryptocurrencies. With tens of thousands of altcoins available today, they vary widely in design and function.
Key Takeaways:
The word "altcoin" comes from "alternative" and "coin." Altcoins live on their own blockchains and are often created as forks—splits from existing chains like Bitcoin or Ethereum—usually due to disagreements among developers.
Some altcoins are functional tokens used for transactions on their networks (e.g., ETH on Ethereum), while others, like Bitcoin Cash, were created to compete directly with Bitcoin in everyday payments.
Altcoins are cryptocurrencies other than Bitcoin. Some also exclude Ethereum, since most cryptocurrencies are derived from either Bitcoin or Ethereum. Altcoins often use different consensus mechanisms and may offer unique features or use cases that set them apart.
Developers typically create altcoins to serve specific purposes or to improve upon limitations they see in existing cryptocurrencies. With tens of thousands of altcoins available today, they vary widely in design and function.
Key Takeaways:
- Altcoins are all cryptocurrencies besides Bitcoin—and sometimes Ethereum.
- There are over ten thousand altcoins on the market.
- Altcoins are categorized based on their intended use or function.
- Their future depends on the continued development and adoption of the blockchains they run on.
The word "altcoin" comes from "alternative" and "coin." Altcoins live on their own blockchains and are often created as forks—splits from existing chains like Bitcoin or Ethereum—usually due to disagreements among developers.
Some altcoins are functional tokens used for transactions on their networks (e.g., ETH on Ethereum), while others, like Bitcoin Cash, were created to compete directly with Bitcoin in everyday payments.