Crypto Glossary

Posted on April 29, 2021 in
Glossary

Altcoin

Altcoin refers to any digital assets, such as a coin or token that is not Bitcoin. Because Bitcoin is the original cryptocurrency, it inspired many people to create their own digital assets as an alternative coin, hence the term ‘altcoins’

What is altcoin?

Altcoin is a combination of two words “alternative” and “coin” to form altcoin. After the success of bitcoin, many other peer-to-peer digital currencies paved the way. Altcoins are trying to target the perceived limitations of Bitcoin. Altcoins have to create competitive strategies to succeed against Bitcoin. 

Types of Altcoins

Types of altcoins consist of mining-based cryptocurrencies, stablecoins, security tokens, and utility tokens. Some altcoins will change Bitcoin’s rules sufficiently to do something uniquely and may have a particular application. Examples of altcoins include Ethereum and stablecoins such as Tether and USDC.

Mining-Based cryptocurrencies

These altcoins have a mining process which generates new coins by solving problems to unlock blocks. These coins are more similar to Bitcoin than other altcoins. Ethereum is the most popular mining-based altcoin.

Stablecoins

Stablecoins are an improvement based on Bitcoin because they reduce volatility. The value of the coins exists in currencies. Popular backed altcoins include the US dollar, the euro, and gold. DAI is one example of a stablecoin.

Security Tokens

These altcoins are often launched in an initial coin offering (ICO). Security tokens resemble traditional stocks, and they provide a type of dividend like payout or ownership in a business.

Utility Tokens

Utility tokens provide a claim on services and they are sold as part of an ICO. Filecoin is an example of a utility token offered in an ICO. Filecoins are created to be exchangeable for decentralized systems.

Related Articles

10 Best Altcoins To Buy In 2022 Before the Next Altcoin Season

August 02, 2022

10 Best Altcoins To Buy In 2022 Before the Next Altcoin Season

There are several Altcoins in the crypto market, but here is a list of the 10 Best Altcoins to invest in 2022. Don’t miss out.

Altcoin Season When, what and why?

December 10, 2021

Altcoin Season When, what and why?

Do you know that Altcoins have their season? Learn the factors that cause Altcoin season to stay up to date on the investment trends.

What are altcoins and can they make you money?

December 09, 2021

What are altcoins and can they make you money?

Learn the definition and different types of Altcoins, as well as what you need to know before investing, all in one article!

Zipmex is APAC's largest crypto exchange and we're growing fast in Australia - an innovative platform that offers easy and safe trading, reward accounts, low fees and access for anyone from anywhere. It's time for a financial revolution. Join us.

A member of

ASIC registered

AUSTRAC registered