Every cryptocurrency that’s not the original Bitcoin is considered an “alternative” to it, hence an “alternative coin” or altcoin.įrom this vantage point, an altcoin is every cryptocurrency that’s not Bitcoin. If the entire cryptocurrency universe expanded from a single point, sort of like a big bang, that point of singularity would be Bitcoin, the first cryptocurrency. But here’s a guide to help you explore altcoins, coins, and tokens without falling in. Is your head spinning? That’s OK even crypto pros don’t always get it right.ĭespite the difficulties in trying to tell crypto apples from crypto oranges-or whether there really is a difference-it helps to understand the basic lingo that’s being thrown around, even if the meanings change or remain uncertain.Ī semantic rabbit hole it may be. One of the largest crypto exchanges considers all tokens to be altcoins, yet refers to all crypto assets as (technically) tokens.Some tokens are also considered altcoins, even though there’s a technical difference.Some tokens are launched via initial coin offerings (ICOs), although they’re not technically coins.Yet they’re used synonymously in different contexts: Are they synonymous? According to many sources, they’re not. Take, for instance, the most basic terms identifying cryptocurrency: coins, altcoins, and tokens. In general, a coin is a cryptocurrency that comes with its own dedicated blockchain, and a token is a cryptocurrency or crypto asset that runs on another cryptocurrency’s blockchain.The context is often more important than the technical definition.The terms altcoins, coins, and tokens are technically distinguishable, but are frequently misused.
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