What are altcoins, and what is altcoin season?

Scroll any Indian exchange and you will see hundreds of coins beyond Bitcoin. These are altcoins, and every few years traders start talking about "altcoin season", a stretch when many of them outrun Bitcoin. This guide explains what altcoins are, why they are riskier, and how to use the Altcoin Season Index without being misled by it.

Key takeaways

• An altcoin is any cryptocurrency other than Bitcoin, from large networks like Ethereum and Solana to small, speculative tokens.
• Altcoins are generally more volatile and less liquid than Bitcoin, and many have failed entirely.
• Altcoin season is a period when most large altcoins outperform Bitcoin; on our index, 75 or above signals altcoin season and 25 or below signals Bitcoin season.
• Altcoin seasons have historically been short and have often ended with sharp falls.
• Every altcoin trade in India is taxed at 30% on gains, with 1% TDS and no set-off of losses between coins.

What is an altcoin?

"Altcoin" is short for alternative coin. When Bitcoin was the only cryptocurrency, every new one was an alternative to it. Today the term covers thousands of assets. Some are the base currency of a blockchain (ETH on Ethereum, SOL on Solana); others are tokens issued on top of those chains.

Main types of altcoins

• Smart-contract platforms: networks that run applications, such as Ethereum and Solana. Read what Ethereum is.
• Payment coins: designed mainly for transfers, such as Litecoin or XRP.
• Stablecoins: tokens such as USDT and USDC that aim to track the US dollar. They are technically altcoins but behave very differently; see what is a stablecoin.
• DeFi and exchange tokens: tokens tied to lending, trading or exchange platforms.
• Privacy coins: such as Zcash, which offer optional or default transaction privacy.
• Memecoins: such as Dogecoin, driven largely by community and hype rather than fundamentals.

Why altcoins are riskier than Bitcoin

• Higher volatility. Moves of 20% to 30% in a day are common for smaller coins, in both directions.
• Lower liquidity. Thin order books mean large orders can move the price, and on Indian exchanges the INR pair may trade at a premium or discount to global prices.
• Concentrated ownership. Founders, early investors and funds may hold large shares and sell as tokens unlock.
• Project risk. Many altcoins from past cycles are now worth a tiny fraction of their peak or have been abandoned.
• Scams. Fake tokens and "pump" groups often target new investors. Read how to spot crypto scams in India.

What is altcoin season?

Altcoin season, or "altseason", describes a phase when capital rotates out of Bitcoin into altcoins, and most of them outperform BTC. It has typically happened after Bitcoin has already rallied: early gains concentrate in Bitcoin, then investors look for bigger percentage moves in smaller coins. It usually coincides with high greed on sentiment gauges.

How the Altcoin Season Index works

Our Altcoin Season Index takes the top 100 coins by market cap, removes stablecoins and wrapped or staked tokens, and counts how many beat Bitcoin's return over the last 30 days. The share is turned into a score from 0 to 100:

• 75 or above: Altcoin Season, when most large alts are outperforming BTC.
• 26 to 74: neutral or mixed.
• 25 or below: Bitcoin Season, when BTC is leading.

Other sites use a 90-day window, so their readings can differ from ours. A 30-day window reacts faster but is noisier.

Reading it alongside other indicators

Pair the index with Bitcoin dominance, which measures the same rotation by market cap rather than by breadth. Falling dominance plus a rising altseason score suggests broad altcoin strength. Check which coins are actually moving on Gainers & Losers and Trending. This week showed how quickly things can turn: Bitcoin Cash and Zcash rallied before altcoins reversed on a bond-yield shock, as we covered in this report.

A quick altcoin research checklist

• Purpose: can you explain in one sentence what the network or token does, and who pays to use it?
• Supply: compare circulating supply with maximum supply. A large gap means future unlocks could add selling pressure.
• Liquidity: check 24-hour volume and the spread on your Indian exchange. A coin you cannot sell easily is riskier than its chart suggests.
• Team and track record: is development active and public, and has the project survived a bear market?
• Red flags: guaranteed returns, celebrity promotion, anonymous teams with no code, and pressure to buy before a "listing".

You can compare market caps and INR prices across hundreds of coins on our crypto prices in India page.

How Indian investors can approach altcoins

• Research before you buy: what the network does, who uses it, token supply and unlock schedules, and whether it trades on FIU-registered Indian exchanges with real volume.
• Size positions small: many investors keep altcoins to a small portion of their crypto, with larger holdings in Bitcoin and Ethereum.
• Mind the tax: each swap or sale is a taxable transfer at 30%, and you cannot offset a loss on one altcoin against a gain on another. Frequent altcoin trading can leave you with a tax bill even in a year you lost money overall. Estimate it with the crypto tax calculator.
• Plan exits: decide in advance where you will take profits or cut losses. Our risk management guide covers position sizing and stops.

Frequently asked questions

Is Ethereum an altcoin?

Yes. Any cryptocurrency other than Bitcoin is an altcoin, including Ethereum, even though it is the second-largest crypto by market cap.

Is it altcoin season now?

Check the live reading on our Altcoin Season Index. A score of 75 or more means most of the top 100 coins have beaten Bitcoin over the last 30 days; 25 or below means Bitcoin is leading.

How long does altcoin season last?

There is no fixed length. Past altcoin seasons have often lasted weeks to a few months and ended abruptly, frequently with steep falls in the smaller coins.

Are altcoins good for long-term investment?

Some large networks have lasted many years, but many altcoins have failed. Long-term holding requires careful research and accepting that an individual altcoin can fall close to zero.

This guide is educational and general in nature. It is not investment, tax or legal advice, and nothing here is a guarantee of any return. Crypto is volatile and you can lose money; only invest what you can afford to lose.

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This article is AI-assisted, educational and general in nature. It is not financial advice and never a guarantee of profit. Every trade is at your own risk on your own exchange. See our risk disclosure and editorial policy.