Altcoins refer to any cryptocurrencies other than Bitcoin. The term originates from “alternative coins,” signifying that these digital currencies serve as alternatives to Bitcoin, the first and most widely recognized cryptocurrency. Altcoins encompass a vast array of digital assets, each with unique features, use cases, and underlying technologies.
They can include well-known coins like Ethereum, which introduced smart contracts, and Litecoin, which aims to provide faster transaction times. Additionally, the category comprises thousands of lesser-known tokens and coins, many of which are created through initial coin offerings (ICOs) or similar fundraising methods.
Altcoins can serve various purposes, such as facilitating transactions, powering decentralized applications, or providing governance mechanisms within their ecosystems. The market for altcoins is dynamic and can be significantly more volatile than that of Bitcoin, making them popular among traders and investors seeking higher-risk opportunities.
Fund managers are increasingly eager to diversify their portfolios with altcoins, moving beyond Bitcoin. 40% of surveyed managers are expected to actively trade multiple altcoins, showcasing a significant shift in…