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.