What it is
The term "altcoin" is a portmanteau of "alternative coin" and encompasses a vast array of digital assets. These cryptocurrencies may use different consensus mechanisms, offer enhanced privacy features, support smart contracts, or serve as utility tokens within specific decentralized applications. Altcoins were initially created to address perceived limitations of Bitcoin or to pursue different visions for blockchain technology.
In markets, altcoins often exhibit higher volatility than Bitcoin, with their prices frequently influenced by Bitcoin's performance, broader crypto market sentiment, and project-specific news. Investors track altcoin market capitalization and trading volumes to gauge interest. The "altcoin season" refers to periods when altcoins, on average, outperform Bitcoin, often signaling increased risk appetite among investors.
Why it matters
Retail investors may seek altcoins for higher potential returns, specific utility, or to diversify their crypto portfolios beyond Bitcoin.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice