Altcoins (short for "alternative coins") are all cryptocurrencies other than Bitcoin. In trading and investing, altcoins represent a wide variety of digital assets built on blockchain technology, often created to improve upon or offer alternatives to Bitcoin’s features.
Types of Altcoins:
Ethereum (ETH) – The most well-known altcoin; it enables smart contracts and decentralized apps (dApps).
Stablecoins – Pegged to fiat currencies (like USDT or USDC) to reduce volatility.
DeFi Tokens – Power decentralized finance platforms (e.g., AAVE, UNI).
Meme Coins – Community-driven tokens with viral appeal (e.g., Dogecoin, Shiba Inu).
Utility Tokens – Provide access to services or features in blockchain ecosystems (e.g., BNB, LINK).
Governance Tokens – Give holders voting rights on project decisions (e.g., COMP, MKR).
Why Altcoins Matter in Trading:
Higher Risk, Higher Reward: Altcoins can offer higher returns but also come with more volatility.
Portfolio Diversification: Investing in different altcoins spreads risk beyond just Bitcoin.
Innovation Opportunities: Many altcoins explore cutting-edge tech or unique use cases.
Things to Consider Before Trading Altcoins:
Project fundamentals (team, use case, roadmap)
Market liquidity and volume
Exchange listings
Security and community support
