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What is an altcoin?
What is an altcoin and when is it altcoin season? Keep reading to find out.
Bitcoin is the world’s largest cryptocurrency, but it’s far from the only one. There are thousands of other digital currencies in existence, and they’re known as altcoins. In this guide, we’ll explore the different types of altcoins, how they work, and how they vary from Bitcoin.
What is an altcoin?
An altcoin is any cryptocurrency that is not Bitcoin.
Bitcoin was created in 2009 as the world’s first cryptocurrency. It was intended as a peer-to-peer electronic cash system, but it soon became apparent that Bitcoin had its limitations. Slow transaction speeds, high fees and scalability problems were just some of Bitcoin’s shortcomings.
As a result, a range of other alternative coins were developed to improve on Bitcoin and introduce new features. And when you combine the words “alternative” and “coin”, you get altcoin.
How many altcoins are there?
A lot. Figures vary between sources, but estimates put the number of cryptocurrencies in existence anywhere between approximately 10,000 and several million. CoinGecko, a cryptocurrency data aggregator, tracks almost 19,000 cryptocurrencies.
The vast majority of these altcoins you’ve never heard of, and probably never will. But there are some of these non-Bitcoin cryptos, like Ethereum, Tether and XRP, that have garnered plenty of mainstream media attention.
Types of altcoins
Thousands of altcoins have launched since 2011, and most of them can typically be classified into one of the following categories.
Payment coins
Like Bitcoin, these coins are designed to be used as a form of peer-to-peer electronic cash. They act as a medium of exchange, and they typically aim to improve on some of the issues that prevent Bitcoin from being used as an alternative payment option to fiat currency.
For example, XRP aims to offer fast, low-cost global payments, while Bitcoin Cash offers faster and cheaper transactions than Bitcoin.
Stablecoins
A stablecoin is designed to maintain a stable price. Most stablecoins peg their value to a real-world asset like the US dollar, but crypto-backed and algorithmic stablecoins are also available.
The purpose of stablecoins is to overcome the infamous volatility of cryptocurrencies which makes them unsuitable for day-to-day use as a store of value and a payment method.
Popular stablecoins include Tether and USDC. Learn more in our full guide to stablecoins.
Utility tokens
A utility token has a specific use within a blockchain network. Rather than being used as a form of payment, it provides access to a specific feature or service within the network. The value of a utility token is based on the demand for the blockchain platform and the features or services the token allows you to access.
For example, you may need a utility token to pay network fees, to buy goods or services, to access decentralized apps or to make in-game purchases.
ETH is the best-known example of a utility token. It’s used to pay network fees and execute smart contracts on the Ethereum blockchain.
Memecoins
Memecoins are typically based on online memes and viral trends. They’re often created as a joke or as a way to reference pop culture.
But these less-than-serious coins can sometimes gain serious value. Dogecoin and Shiba Inu are two well-known memecoins that were both created as jokes, but at the time of writing they have market caps of around US$35 billion and US$7 billion respectively.
Governance tokens
As the name suggests, holding one of these cryptocurrencies entitles you to have your say in the governance of a blockchain. Holders have voting rights and can help determine things like network upgrades and how funding is allocated. These sorts of tokens help ensure the decentralization of crypto projects.
Examples of governance tokens include Hyperliquid’s HYPE token and the Polkadot (DOT) token.
Security tokens
When a real-world asset is tokenized and stored on a blockchain, a security token is used to represent ownership of that asset. Common assets that can be represented by security tokens include real estate and shares.
Privacy coins
Privacy coins aim to keep crypto transactions private. They include features designed to anonymize transactions and prevent the tracing of transactions.
Monero and Zcash are two well-known privacy coins.
List of altcoins
Check out the table below for a list of the top 20 altcoins by market capitalization.
| Altcoin | Coin symbol | Current price | Market cap | Buy now on Kraken |
|---|---|---|---|---|
| Ethereum | ETH | Buy ETH | ||
| Tether | USDT | Buy USDT | ||
| XRP | XRP | Buy XRP | ||
| BNB | BNB | Buy BNB | ||
| Solana | SOL | Buy SOL | ||
| USDC | USDC | Buy USDC | ||
| Dogecoin | DOGE | Buy DOGE | ||
| Cardano | ADA | Buy ADA | ||
| Tron | TRX | Buy TRX | ||
| Hyperliquid | HYPE | Buy HYPE | ||
| Chainlink | LINK | Buy LINK | ||
| Ethena USDe | USDe | Buy USDe | ||
| Avalanche | AVAX | Buy AVAX | ||
| Stellar | XLM | Buy XLM | ||
| Sui | SUI | Buy SUI | ||
| Bitcoin Cash | BCH | Buy BCH | ||
| Hedera | HBAR | Buy HBAR | ||
| UNUS SED LEO | LEO | Buy LEO | ||
| Litecoin | LTC | Buy LTC | ||
| Shiba Inu | SHIB | Buy SHIB |
Bitcoin dominance and the altcoin season index
When people say that Bitcoin is the world’s largest cryptocurrency, that’s no exaggeration. According to data from CoinGecko, as of October 1, 2025, Bitcoin makes up almost 57% of the total cryptocurrency market cap. This is what’s known as Bitcoin dominance.
Bitcoin dominance is a key metric used to measure the performance of cryptocurrencies and the sentiment of crypto traders. In the crypto world at least, Bitcoin is seen as a relatively stable asset, so it becomes a popular safe haven for investors during times of volatility.
So when the Bitcoin dominance percentage is high, that’s a sign that BTC is performing better than altcoins.
On the flip side, when Bitcoin dominance drops, it indicates that investors are putting their money into altcoins. And when altcoins outperform Bitcoin, it’s known as “altcoin season” or just “altseason”.
But how can you tell if it’s altcoin season or not? This is where the Altcoin Season Index comes in. This index tracks the performance of Bitcoin vs the top 50 altcoins by market cap (except for stablecoins and asset-backed tokens) over the past 90 days. If 75% or more of those altcoins have performed better than BTC during that time period, it’s altcoin season.
Altcoin season example: 2021
When altcoin season hits, speculation and FOMO are prominent. This means that there is the potential for high price rises among leading altcoins, but you can also expect high volatility and plenty of risk.
One famous example of altcoin season occurred during the COVID-19 pandemic in 2021. Driven by factors like the rise of decentralized finance (DeFi), NFTs and low interest rates, Bitcoin’s dominance dropped from 68% to 38%. Altcoins surged, with Ethereum climbing from a price of US$728 in early January to US$4,099 by May 15.
10 best altcoins to buy now
There’s no single strategy that can guarantee you will find the best altcoin to invest in. Cryptocurrencies are highly volatile and risky, and there are altcoins out there designed to serve a diverse variety of purposes and real-world use cases. There’s no way of knowing for sure if a particular crypto is worth buying.
But if you’re searching for coins and tokens other than Bitcoin to invest in, let’s take a closer look at the top 10 largest altcoins by market cap and what they offer.
1. Ethereum (ETH)
Ethereum is a decentralized blockchain network that can run smart contracts and a wide range of decentralized applications. Launched in 2015, the platform has a native utility token, Ether (ETH), that has long held the position of the world’s second largest cryptocurrency. ETH is used to fuel transactions and smart contracts on the Ethereum network.
2. Tether (USDT)
Tether is a stablecoin that is pegged 1:1 to the US dollar. USDT tokens are issued by Tether Limited, which maintains 100% reserves of US dollars to back each token. Tether is designed to remove the volatility for which cryptocurrencies are known and allow for fast and cheap cross-border transactions.
3. XRP (XRP)
XRP is designed to facilitate cross-border payments. Built on an open-source blockchain known as the XRP Ledger, it offers fast and cheap global transactions between financial institutions. Unlike Bitcoin, which can be mined, the entire 100 million supply of XRP has already been created.
4. BNB (BNB)
BNB is the native token of BNB Chain, a blockchain platform created by Binance, the world’s largest crypto exchange in terms of daily trading volume. BNB is a utility token for BNB Chain, and it can be used to pay transaction fees, access decentralized apps and for staking and securing the network. BNB holders can also access trading fee discounts on Binance.
5. Solana (SOL)
Founded in 2017 and launched in 2020, Solana is a blockchain platform designed for fast transactions, low fees and a high level of scalability. This proof-of-stake network supports decentralized apps, DeFi protocols and more. SOL is Solana’s utility token and is used to pay transaction fees, interact with apps and secure the network.
6. USDC (USDC)
USDC is another stablecoin pegged to the US dollar. Launched by Circle in 2018, USDC tokens are backed by US$1 or a cash-equivalent asset. You can check the Circle website for up-to-date details of the composition of its reserves.
7. Dogecoin (DOGE)
Launched in 2013, Dogecoin is based on the famous “Doge” meme that features a Shiba Inu. This parody crypto coin is a peer-to-peer digital currency. Built on the Litecoin blockchain, Dogecoin offers faster transactions and reduced fees compared to Bitcoin.
8. TRON (TRX)
TRON is a proof-of-stake blockchain where developers can run smart contracts and create decentralized applications. TRX is the utility token that powers the TRON network. You can use this cryptocurrency to pay for transaction fees, secure the network via staking, and obtain voting rights.
9. Cardano (ADA)
Cardano is another decentralized, proof-of-stake blockchain that supports smart contracts and decentralized apps. Launched in 2017, the Cardano platform has its own native utility token, ADA. ADA is used to pay transaction fees, can be staked to help secure the network, and also gives holders the right to vote on governance matters.
10. Hyperliquid (HYPE)
Hyperliquid is a decentralized exchange that runs on the Hyperliquid L1 blockchain. It’s designed to offer fast transactions and low fees, and developers can build their own apps on the Hyperliquid blockchain. HYPE is the network’s utility and governance token that can be used for paying transaction fees, staking, fee discounts and voting rights.
Of the cryptocurrencies featured in this section, the author holds ADA at the time of writing.
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What to watch out for with altcoins
The main risk you need to be aware of if you’re thinking about investing in altcoins is volatility. Cryptocurrencies have a well-earned reputation for violent price swings. And while this means there is the potential for big profits, there’s also a risk of losing a lot of money in a short time. You’ll need to be careful not to overcommit yourself by pumping a huge amount of money into altcoins.
Next, it’s worth pointing out that cryptocurrencies are highly speculative. While some projects have been around for a while, plenty of others haven’t — and there are new projects popping up all the time. With no track record behind them, it can be difficult to gauge the true value of a coin or token.
Finally, you’ll also need to watch out for scams. Make sure you research any altcoin project thoroughly to make sure it’s legit, and stick to buying coins and tokens listed on properly regulated cryptocurrency exchanges.
Must read: Day trading crypto
Read our full guide to how to buy different altcoins
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Bottom line
There’s much more to crypto than just Bitcoin. Legit altcoins offer a variety of use cases and aim to solve a range of industry-specific problems, and they offer potential growth and portfolio diversification for investors. But cryptos are also notoriously volatile and you also need to watch out for scams, so make sure you research any altcoin project thoroughly before deciding if it’s worth supporting.
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