Though Bitcoin ignited the crypto wave, countless altcoins have since emerged, each offering unique features integral to the market. This guide explores altcoins, their types, notable examples, and how to invest in them.
What Is an Altcoin?
Altcoins (alternative coins) refer to all cryptocurrencies except Bitcoin. They were created to address BTC’s limitations, offering functionalities like faster transactions, smart contracts, or niche use cases (e.g., meme coins).
Types of Altcoins
The altcoin market is diverse, with each category serving distinct purposes:
Stablecoins (e.g., USDT, USDC)
- Pegged to assets like fiat currencies to minimize volatility.
Utility Tokens (e.g., Uniswap, Jupiter)
- Enable access to blockchain services or dApps.
Meme Coins (e.g., Dogecoin, Shiba Inu)
- Community-driven, often fueled by social trends.
DeFi Tokens (e.g., Aave, Maker)
- Power decentralized lending, borrowing, and trading.
CEX Tokens (e.g., Binance Coin)
- Offer exchange-based benefits like fee discounts.
Popular Altcoin Examples
Over 14,000 altcoins exist today. Top projects include:
- Ethereum (ETH)
- Solana (SOL)
- XRP
- Cardano (ADA)
Bitcoin vs. Altcoins
- Bitcoin Dominance: Measures BTC’s market cap relative to the crypto market.
- Market Correlation: Altcoins often follow BTC’s price trends but may diverge during volatility.
How to Buy Altcoins
- Choose a crypto exchange.
- Deposit funds (fiat or crypto).
- Select an altcoin and place an order.
- Store securely in a private wallet.
Promising Altcoins in 2024
- Solana: High-speed blockchain for DeFi/NFTs.
- Cardano: Research-driven smart contracts.
- Rollbit: Emerging gaming/DeFi platform.
FAQ
Is Ethereum an altcoin?
Yes. It expands Bitcoin’s functionality with smart contracts.
Is Shiba Inu an altcoin?
Yes, it’s a meme coin with a dedicated ecosystem.
How do altcoins differ from stablecoins?
Altcoins are volatile; stablecoins maintain price stability via pegs.
Can altcoins outperform Bitcoin?
Some do during bull markets, but BTC remains the market benchmark.