What is an altcoin & how does it work?

(Getty Images) An altcoin is any cryptocurrency that isn't Bitcoin (BTC). These coins were created after Bitcoin and often present themselves as better alternatives to the premier cryptocurrency. Altcoins make up nearly 40% of the total cryptocurrency market, according to CoinMarketCap.

What was the first altcoin?

The first altcoin was Namecoin, which is based on Bitcoin's code and was released in April 2011. Namecoin is integral to the history of altcoins in that it showed that there's enough room in the crypto markets for more than one kind of coin.

How are altcoins different from bitcoin?

Most altcoins are designed and released by developers who have a different vision or use for their tokens or cryptocurrency. Learn more about altcoins and what makes them different from Bitcoin. The term altcoin refers to all cryptocurrencies other than Bitcoin (and for some people, Ethereum). There are tens of thousands of altcoins on the market.

What is an “alternative coin”?

Every cryptocurrency that’s not the original Bitcoin is considered an “alternative” to it, hence an “alternative coin” or altcoin. From this vantage point, an altcoin is every cryptocurrency that’s not Bitcoin. But there’s a caveat to this definition: Not everyone agrees with it.