When people think of cryptocurrencies, the first thing that usually comes to mind is Bitcoin. However, the digital currency market is much broader and includes thousands of other coins known as altcoins. The term “altcoin” is short for “alternative coin”, meaning any cryptocurrency that is not Bitcoin. Currently, there are over 14,000 different altcoins, accounting for approximately 49% of the total cryptocurrency market capitalization.
The evolution of altcoins
Initially, many altcoins were based on Bitcoin’s technology, attempting to offer improved versions of the original cryptocurrency. Over time, however, developers started creating projects built on entirely new and unique foundations. Today, many altcoins stand out due to innovative technologies, unique transaction validation mechanisms, and the implementation of smart contracts.
Types of altcoins
The variety of altcoins can be overwhelming, but they can generally be categorized into several main types:
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Mineable altcoins: These cryptocurrencies use the Proof-of-Work (PoW) mechanism and are mined by users, similar to Bitcoin.
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Stablecoins: Designed to maintain a stable value, these coins are often pegged to traditional fiat currencies, reducing the volatility that is typical of most cryptocurrencies.
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Security tokens: Digital assets that represent ownership or shares in an external asset, such as real estate or company equity. These tokens often undergo Security Token Offerings (STOs).
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Utility tokens: Tokens used within specific blockchain projects for various purposes, including paying transaction fees, rewarding users, and funding development. Examples include tokens issued through Initial Coin Offerings (ICOs) or Initial Exchange Offerings (IEOs).
Investing in altcoins
The altcoin market is highly unpredictable. While some investments may yield significant profits, others can lead to substantial losses. All altcoins, except stablecoins, are highly volatile, meaning their value can fluctuate significantly in a short period.
Key principles for investing in altcoins:
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Assess the risks: Be prepared for both gains and losses. Investing in altcoins carries risk, so if you’re not comfortable with potential losses, this market may not be for you.
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Invest in projects you understand: Don’t put your money into altcoins based on recommendations from friends or social media trends. Research the technology and objectives of a project before investing.
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Do your own research (DYOR): Don’t rely solely on so-called “investment gurus” or succumb to FOMO (fear of missing out). Check official project documentation, social media updates, and whitepapers to verify legitimacy.
While investing in altcoins can be risky, it also offers high potential returns. Thorough research and a solid understanding of the technology behind each project can increase your chances of making smart investment decisions. With proper due diligence, you might discover hidden gems in the altcoin market that could become valuable additions to your investment portfolio.
Most Popular Altcoins (as of 1 July 2025)
- Ethereum (ETH) – On May 7, the Pectra hard fork launched on mainnet, doubling blob capacity, reducing L2 costs, and raising the staking limit to 2048 ETH. However, the anticipated Verkle Trees upgrade has been postponed to a later stage (Fusaka, expected around late 2025/early 2026), meaning the network is not yet fully stateless.
- Solana (SOL) – The network remains stable, and the Firedancer client is already running in non-voting mode on mainnet, with intensive testing underway on testnet. Ongoing work aims to raise the compute unit limit from 48 to 60 million CU, potentially doubling throughput.
- XRP (XRP) – Ripple continues expanding its CBDC initiatives. The latest pilot involves the digital lari (GEL) in collaboration with the National Bank of Georgia. Ripple now boasts ten official central bank partnerships.
- Binance Coin (BNB) – The Maxwell hard fork has been live on testnet since May 26, reducing block time to 0.75 seconds. Mainnet deployment is scheduled for June 30, 2025. The suspension of the SEC lawsuit against Binance has temporarily eased regulatory pressure.
- Arbitrum (ARB) – Still the largest L2 ecosystem (~$2.3 billion TVL). In April, the Timeboost auction mechanism was launched, designed to reduce spam and generate revenue for the DAO.
- Dogecoin (DOGE) – Remains the leading memecoin, but the beta version of X Money payments does not yet support native DOGE transactions, dampening some community enthusiasm.
- Avalanche (AVAX) – Focused on Evergreen Subnets tailored for institutions. Analysts highlight increased AVAX usage in bond tokenization, loyalty programs, and DePIN/AI projects.
- Chainlink (LINK) – Oracle infrastructure is becoming critical for RWA tokenization. April saw new partnerships announced with Coinbase (Project Diamond), Fidelity International, Paxos, and Ripple (RLUSD) – with over $20 trillion in on-chain value now leveraging Chainlink services.
- Toncoin (TON) – Telegram’s ecosystem is growing the fastest. The TON Space wallet is now natively available to 900 million users, and TON’s price has surged by around 400% in 2025, with particularly strong adoption in Asia and Central-Eastern Europe.
- Cardano (ADA) – Development continues at a steady pace. Mithril v2 (incremental database certificates) is being implemented, and preparations for UTxO-HD are underway. The “peer-review first” philosophy continues to attract a strong academic and scientific community.
You can find these and many more on our exchange!
Summary
To summarize, the cryptocurrency world is much more than just Bitcoin. Altcoins offer a diverse range of investment opportunities, and understanding their differences can help investors make informed decisions. As this market continues to evolve, staying informed and continuously expanding your knowledge will be crucial for making smart investment choices.
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