Altcoin: Meaning and Definition

What is an altcoin?

An altcoin ("alternative coin") is any cryptocurrency other than bitcoin.

Ether, XRP, Solana, Litecoin and Dogecoin are all altcoins. The word does not say whether a coin is good or bad. It only says the coin is not bitcoin.

Formal definition and edge cases

In a stricter sense, an altcoin is any digital asset recorded on a blockchain and traded as a cryptocurrency, excluding bitcoin itself. Experienced traders should know where the term gets blurry:

• Coins vs tokens. A coin runs on its own blockchain, such as ether on Ethereum. A token is issued on someone else's chain, such as a token built on Ethereum's standard token format. Many people call both "altcoins". Some reserve the word for coins only.
• Stablecoins. Coins pegged to a fiat currency, such as USDT or USDC, are technically altcoins. Market reports often list them separately because their price is designed not to move.
• Bitcoin forks. Bitcoin Cash and Bitcoin SV split from bitcoin's code but are separate assets. They count as altcoins despite the name.
• CBDCs. A central bank digital currency is not an altcoin. It is state money in digital form, not a cryptocurrency.
• "Altseason". This is market slang for a period when altcoins as a group rise faster than bitcoin. It describes past price action and predicts nothing.

Altcoin vs bitcoin

Altcoin prices often move in the same direction as bitcoin. A high correlation coefficient between them is common, so holding several altcoins does not always spread risk.

Worked example (hypothetical)

Many platforms quote altcoins against the US dollar, for example ETHUSD. Some also quote them against bitcoin, for example ETH/BTC.

Suppose bitcoin and ether both fall against the dollar on the same day, and ether falls further. Then the ETH/BTC price also falls, because one ether now buys less bitcoin than before. A trader who watched only ETHUSD would see the loss. ETH/BTC also shows that ether did worse than bitcoin. This is why traders read altcoin charts in dollars and against bitcoin.

Where you see the term

• Platforms: crypto CFD lists and exchange menus often group coins as "bitcoin" and "altcoins". See Crypto CFDs.
• Reports: market updates use "altcoin market cap", meaning the total value of all crypto minus bitcoin.
• News: headlines about "altcoin rallies" or "altcoin sell-offs" describe broad moves across many coins.

What about "best altcoins"?

There is no objective list of the "best altcoins", and this page does not rank coins. Rankings you see online usually sort coins by market value or recent returns. Neither tells you anything about future prices.

Crypto CFDs are traded with leverage. With leverage, small price moves can wipe out a deposit quickly, and many altcoins move sharply. In Pakistan, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. Read Risk management and Regulation and Safety before you trade any crypto product.

Related terms

• Blockchain
• Crypto wallet
• Gas fees
• Decentralised finance (DeFi)
• Annualized volatility
• Asset bubble
• Trading glossary

Frequently asked questions

What is the simple altcoin meaning?

It is any cryptocurrency that is not bitcoin.

Is ether an altcoin?

Yes. Ether is usually the largest altcoin by market value.

Are stablecoins altcoins?

Technically yes, but many reports list them separately because their price is pegged.

Are altcoins riskier than bitcoin?

Many altcoins have thinner liquidity and larger price swings than bitcoin. With leverage, losses can come quickly.

Is there a list of the best altcoins?

No objective one exists. Rankings by size or past returns do not predict future prices.