An altcoin (from alternative coin — «alternative coin») is a generic name for all cryptocurrencies issued as an alternative to bitcoin. Bitcoin was the first and for a long time the only cryptocurrency, so everything that appeared after it was historically assigned to the altcoin category. Today, thousands of different coins and tokens fall under this definition.

The first altcoins largely repeated the architecture of bitcoin and were its modifications (forks), differing in individual parameters: the hashing algorithm, the speed of block generation, the volume of emission. Classic examples are Litecoin, Namecoin, Novacoin. Over time, projects with a fundamentally different technological base appeared, offering not just a payment function but entire platforms for smart contracts, decentralized applications and asset tokenization.

What kinds of altcoins there are

• Bitcoin forks — coins based on its source code with modified parameters.
• Platform cryptocurrencies — they power smart contracts and applications.
• Stablecoins — tokens whose value is pegged to external assets.
• Utility tokens — they grant access to the functions of a specific service or network.

It is important to understand that the diversity of altcoins also means a varying level of maturity, liquidity and reliability of projects. Before any interaction with a specific coin, it is worth studying its technology, team and real-world use.