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Any coin that is not Bitcoin is referred to as an altcoin.
Bitcoin was the first cryptocurrency and the first implementation of blockchain technology. In the decade that has followed Bitcoin’s creation, many projects have adapted its technology to create their own coin. The tokenization frenzy that has since ensued has led to many different types of tokens, each with its own use-case. Some of these categories are:
- Cryptocurrency: The entire crypto industry launched on the back of the promise of peer-to-peer cash, and many projects are working to turn this dream into a mass-adopted reality. Bitcoin leads the way in this category, and is followed by cryptocurrencies like Bitcoin Cash, Litecoin, and Ripple.
- Utility token: First-generation cryptocurrencies are limited in functionality and can only be used to send and receive money. Starting with Ethereum, utility tokens expanded upon blockchain technology with the concept of smart contracts and decentralized applications.
- Governance token: Popular amongst DeFi projects, governance tokens allow their holders to participate in governing and upgrading the network. Token holders propose and vote on proposals in a democractic process that is becoming more popular across the industry.
