Altcoin
CryptoGlossary term
Definition
Any cryptocurrency other than Bitcoin, including well-known coins like Ethereum, Solana, and Cardano. Altcoins were created to improve upon Bitcoin's limitations or serve different purposes, such as enabling smart contracts, faster transactions, or enhanced privacy. There are thousands of altcoins available, each with varying levels of utility, risk, and market adoption.
Related terms
- CryptocurrencyA digital or virtual form of currency that uses cryptography for security and operates on decentralized networks, typically based on blockchain technology. Unlike traditional currencies issued by governments, cryptocurrencies are not controlled by any central authority. They can be used for peer-to-peer transactions, investment, and as a medium of exchange on various platforms.
- TokenA digital asset created on an existing blockchain rather than on its own native blockchain. Tokens can represent a wide variety of assets or utilities, including voting rights, access to services, or ownership stakes in a project. They are commonly built on platforms like Ethereum using standards such as ERC-20 for fungible tokens or ERC-721 for NFTs.
- Market Cap (Crypto)The total value of a cryptocurrency, calculated by multiplying its current price by the total number of coins or tokens in circulation. Market cap is a widely used metric for comparing the relative size and popularity of different cryptocurrencies. A higher market cap generally indicates a more established and widely adopted project, though it does not guarantee future performance.
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