These tokens serve as decentralized digital currency, letting users pay for goods or transfer value peer-to-peer without a central authority to validate transactions. BNB is one of the top altcoins by market cap and belongs to Binance, the world’s largest crypto exchange. Initially launched as a utility token for trading fee discounts, BNB now powers the Binance ecosystem, including Binance Smart Chain (BSC), where developers create dApps and smart contracts. Its utility extends beyond Binance, making how to buy theta fuel it a key player in the altcoin market. Altcoins offer unique features, from smart contracts to faster transactions. In this article, you’ll learn what altcoins are, the different types available, and how to assess their market value.
Before making any high-risk investments in cryptocurrency or digital assets, investors should conduct thorough research. Please be aware that any transfers and transactions are done at your own risk, and any losses incurred are entirely your responsibility. NFTevening does not endorse the purchase or sale of any cryptocurrencies or digital assets and is not an investment advisor. Additionally, please note that NFTevening participates in affiliate marketing. Although all are some form of digital currency, altcoins typically use new features or consensus mechanisms beyond Bitcoin’s design. They may target different niches, focus on faster speeds, or introduce smart contracts and governance.
Reading the white paper provides the insight needed to make informed decisions and avoid investing in projects with weak foundations. A strong development team and a dedicated community are critical for long-term project success. Transparent leadership and regular project updates reflect commitment and credibility. Trading based on rumors is exactly what the experts advise against. Examples of stablecoins include USD Coin (USDC), Gemini Dollar (GUSD), and Tether (USDT). Transfer fiat currency (like USD or TRY) or stablecoins (like USDT) into your account.
During bitcoin season, investors pile into bitcoin, and bitcoin significantly outperforms other cryptocurrencies. Investors rotate out of bitcoin, and pile into riskier, more speculative altcoins. As this money flows into altcoins, some of them can skyrocket in value. Like Bitcoin, altcoins use blockchain technology to record and verify transactions. However, they may have different consensus mechanisms, such as Proof of Stake (PoS) or Delegated Proof of Stake (DPoS), compared to Bitcoin’s Proof of Work (PoW) system.
Key levels for traders include the seller congestion at $27.83, which was tested on August 22, and the supply area at around $30.93, previously tested in mid-December. ERC-20 defines fungible tokens; ERC-721 defines NFTs (non-fungible tokens). Without these standards, every new token would require custom integrations, slowing adoption.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. According to CoinGlass, the altcoin season begins when the Altcoin Season Index hits trading room software 75. According to the chart below, the index is currently at 78, suggesting that the altcoin season has commenced. For example, with COMP (Compound protocol), holders can propose and vote on changes to interest rates or protocol upgrades. They act as a key to access a platform’s features or receive benefits (e.g., discounted fees on Binance when using BNB).
Bitcoin is often referred to as “digital gold,” recognized for its scarcity (limited to 21 million coins) and its role as a store of value. Its widespread acceptance by merchants and financial institutions further solidifies its position in the market. Convert altcoins to fiat on major exchanges like Coinbase or Binance. BNB, initially known as Binance Coin, is the native cryptocurrency of the Binance Exchange, the largest crypto exchange by trading volume.
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NFTs are blockchain tokens that how does a crypto exchange work learn center cryptocurrency trading represent unique items — digital art, music, in-game assets, event tickets. If you are directly buying altcoins through spot trading, have a solid exit and profit-taking strategy in place before making any investment. You should predetermine when to exit if prices fall to a specific level below your entry point, as well as how to take profits at predetermined levels above your entry price.
Projects like Axie Infinity’s AXS or Gala Games’ GALA exemplify this approach, where gamers earn tokens by completing quests, battling other players, or contributing to the game’s ecosystem. These tokens can be traded on exchanges for other cryptocurrencies or fiat, bridging entertainment and real-world economic value Start with $250 — begin your trading journey today Accu Trader Alpha Trading.
Altcoin investing comes with both potential rewards and significant risks. To minimize exposure, spread your investments across multiple projects. A diversified portfolio increases your chances of holding a successful altcoin while reducing losses from weaker ones.
Understanding the types of crypto tokens helps you navigate the blockchain ecosystem and evaluate projects. A token is a type of digital asset that exists on top of an existing blockchain. While some altcoins come with risks like rug pulls and unverifiable track records, there are still many altcoins that can pass these checks and make a good fit for your portfolio. If you’re willing to invest in them indirectly, you can explore ETFs, staking, DeFi yield farming, and tokenised index funds. In all, do not yield to Fear Of Missing Out (FOMO) when investing in altcoins.
The community’s support and activity are also important, especially since many blockchain networks rely on the integrity of the participants who mine, stake, and verify the blocks. Crypto investors should seek out altcoins with well-defined purposes and strong use cases, as they are more likely to be successful. Other factors to consider are the general demand and scope for the functionality the altcoin attempts to address. Those interested in adding altcoins to an existing, diversified portfolio can evaluate altcoins based on the following criteria. Examples of security tokens include Polymath (STO), WeWork, and RealBlocks. Examples of governance tokens include Uniswap (UNI), Maker (MKR), and Aave (AAVE).
Their name comes from the fact that they’re alternatives to Bitcoin and traditional fiat money. Namecoin, the first altcoin and Bitcoin fork, was released in April 2011. It is based on Bitcoin’s code and designed to be a decentralized domain name system (DNS) to improve the system for establishing ownership of domain names on the web with blockchain technology. As of 2025, altcoin have evolved beyond simple Bitcoin alternatives.
Early altcoins like Litecoin or Namecoin focused on addressing specific Bitcoin limitations, such as processing speed or domain registry. Over time, the altcoin market has branched out significantly, resulting in thousands of crypto projects offering widely varied use cases. Online exchanges are the most popular option, offering access to thousands of altcoins. OTC services cater to large trades, while crypto ATMs allow quick purchases with cash. The cryptocurrency space is filled with scams, and altcoins are especially risky. Many smaller altcoins turn out to be fraudulent schemes or poorly designed projects that collapse.
For example, a piece of art might have security tokens that divide ownership of that asset and validate the ownership of it. Or a company might have its ownership represented by security tokens. So this kind of token can allow more traditional assets to be securitized. Governance tokens allow holders certain rights within a blockchain, such as voting for changes to protocols or having a say in the decisions of a decentralized autonomous organization (DAO). Because they are generally native to a private blockchain and used for blockchain purposes, they are utility tokens but have come to be accepted as a separate type because of their purpose.