Why do altcoins follow bitcoin?

The fundamental reason behind altcoins following Bitcoin is because altcoin prices are typically measured in Bitcoin. The original crypto asset may be flanked by over 3,000 competitors, but it still commands over half of the entire cryptocurrency market cap. This domination of the crypto market affords Bitcoin a lot of influence and control.

How do I understand altcoins?

To understand altcoins, it helps to first have a firm grasp on Bitcoin (read up on Bitcoin for beginners). It’s also helpful to know the basics of blockchain technology, on which most cryptocurrencies operate.

What is an altcoin & how does it work?

There is a wide variety of coins and tokens with use cases that go well beyond a medium of exchange, meaning they aren’t necessarily bitcoin competitors. Still, for lack of a better designation, the basic definition of an altcoin is any crypto asset other than bitcoin.