#ALTCOINS
Altcoins (short for “alternative coins”) refer to all cryptocurrencies other than Bitcoin. While Bitcoin was the first and remains the most well-known, thousands of altcoins have been launched with various features, use cases, and technologies.
Types of Altcoins
1. Stablecoins
Pegged to fiat currencies (like USD).
Examples: USDT (Tether), USDC, DAI
2. Utility Tokens
Provide access to a service or product within a blockchain ecosystem.
Examples: BNB (Binance Coin), UNI (Uniswap)
3. Governance Tokens
Used to vote on protocol changes.
4. Security Tokens
Represent ownership of real-world assets like stocks, property, etc.
Example: tZERO
5. Meme Coins
Often created as jokes but can gain massive followings.
6. Layer 1 & Layer 2 Coins
Power smart contract platforms or improve scalability.
Layer 1 Examples: ETH (Ethereum), SOL (Solana), ADA (Cardano)
Layer 2 Examples: MATIC (Polygon), ARB (Arbitrum)
Why People Invest in Altcoins
Diversification from Bitcoin
High ROI potential (but also higher risk)
Early adoption of promising tech
Staking/Yield farming opportunities
Risks with Altcoins
Higher volatility than Bitcoin
Regulatory uncertainty
Many are scams or have no utility
Low liquidity on smaller exchanges
