What is Altcoin?
Any cryptocurrency other than Bitcoin — the term covers everything from Ethereum to meme tokens.
Altcoin is short for "alternative coin" — any cryptocurrency that is not Bitcoin. The term is broad, encompassing Ethereum (the second-largest by market cap), established layer-1 blockchains, DeFi tokens, meme coins, and everything in between.
Altcoin categories:
| Category | Examples | Characteristics |
|---|---|---|
| Layer 1s | ETH, SOL, ADA, AVAX | Smart contract platforms |
| Layer 2s | ARB, OP, MATIC | Scaling solutions for ETH |
| DeFi | UNI, AAVE, CRV | Decentralised finance protocols |
| Meme coins | DOGE, SHIB, PEPE | Community/speculation driven |
| Exchange tokens | BNB, KCS, OKB | Utility within exchange ecosystems |
Altcoin market behaviour:
Altcoins typically:
Trading altcoins:
The higher volatility of altcoins means larger potential gains — but also larger losses. Position sizing is critical: a 5% risk on a BTC trade may be appropriate, but the same setup on a mid-cap altcoin might warrant 1–2% given the wider expected swings.
Use the position size calculator with the altcoin's current price and expected stop-loss distance to calculate appropriate sizing regardless of which coin you trade.
Related Calculators
Position Size
Calculate the optimal crypto position size based on your account balance, risk percentage, entry price, and stop loss.
ADA Position Size
Calculate your optimal ADA position size based on your account risk, entry price, and stop loss distance.
SOL Position Size
Calculate your Solana (SOL) position size based on account risk, entry price, and stop loss. Optimized defaults for SOL's typical price range.