A few years ago, the crypto world was synonymous with serious matters, from blockchain technology and smart contracts to big names like Bitcoin and Ethereum.

But now, the atmosphere has changed. Crypto isn’t just about technology, but also about an internet culture full of creativity and humor.

One example of this is the emergence of meme coins, digital assets that started as jokes but have gained extraordinary value in the market.

However, many are still confused, asking, “If they’re both crypto, what’s the difference between meme coins and altcoins?

Many people still confuse the two, even though the differences are quite fundamental and interesting to understand.

The Differences Between Meme Coins and Altcoins That Are Rarely Discussed

Meme coin and altcoins are often considered similar simply because they are blockchain-based, but their origins and goals are actually very different. Here are some important differences to understand:

1. Origins: Meme Coins Born from Jokes, Altcoins from Innovation

If we examine their origins, meme coins and altcoins have very different backgrounds. Meme coins were born from internet culture and meme trends that often go viral on social media.

Take Dogecoin (DOGE), for example, which appeared in 2013 as a parody of Bitcoin with a Shiba Inu dog logo.

Initially created for fun, thanks to community support and figures like Elon Musk, Dogecoin has become one of the most recognized cryptocurrencies in the world.

Meanwhile, altcoins emerged as a form of innovation. Their name comes from “alternative coin,” meaning an alternative coin to Bitcoin.

Their purpose is clear: to improve, perfect, or add functions that Bitcoin lacks.

For example, Ethereum (ETH) with its smart contracts, Litecoin (LTC) offering fast transactions, or Cardano (ADA) focusing on a scientific approach and system efficiency.

From this, it can be seen that these differences in origins also influence the direction and value of both in the crypto market. Meme coins tend to be driven by trends and community strength, while altcoins grow from technological research and development.

This is where the nature and goals of the two begin to differ significantly.

2. Purpose and Function: Entertainment vs. Technological Solutions

In terms of purpose, meme coins and altcoins have very different orientations. Meme coins are generally created for entertainment, community building, or simply as symbols of digital culture in the crypto world.

Initially, these assets had no real utility and existed solely for fun. But over time, some projects began adding functions such as staking, NFTs, and DeFi features to achieve value beyond just viral trends.

Take Dogecoin (DOGE), for example, which initially was a parody of Bitcoin but has now established a large community and an active network.

Altcoins, on the other hand, were born with a long-term vision and more serious technological goals. Altcoin projects strive to provide new solutions, from smart contracts and increasing transaction scale to blockchain network efficiency.

For example, Ethereum (ETH) was designed not only as a digital asset but also as a foundation for building various decentralized applications in the modern blockchain ecosystem.

Based on this purpose, how people assess their value automatically differs.

3. Value and Price Driving Factors: Hype vs. Fundamentals

In terms of price, meme coins and altcoins have very different sources of power. The value of meme coins is usually driven by trends, community support, and the influence of prominent figures in the crypto world.

A single tweet from a famous figure can cause their prices to skyrocket in a short time.

Meanwhile, altcoins are more stable because their price movements tend to be influenced by fundamental factors, such as project development, technology adoption rates, and on-chain data.

Simply put, meme coins are more speculative, while altcoins reflect the growth of the ecosystem and the strength of the projects behind them.

However, this doesn’t mean meme coins don’t have potential—in fact, they have unique strengths in the community aspect.

4. Community and Appeal: Virality vs. Credibility

When it comes to appeal, meme coins and altcoins have completely different approaches. Meme coins grow due to the strength of their solid and active communities on social media.

For example, the Dogecoin Army or ShibArmy can make a coin go viral simply through memes, funny posts, or trends on Twitter.

From there, a spirit of togetherness is born that attracts many people to join, even without a deep understanding of the technology.

Altcoins, on the other hand, rely more on the credibility of the development team and the clarity of the project roadmap.

The value of an altcoin is usually built on investor confidence in the potential of the technology behind it, not simply virality. So, while meme coins are strong on the community, altcoins are strong on innovation and reputation.

This difference also has a significant impact on promotional strategies and how the public views both.

Meme coins focus more on creating buzz and community engagement, while altcoins emphasize real development and technical progress to attract long-term investors.

After discussing the community, the most important thing for investors is how much risk is involved.

5. Investment Risk: Speculative vs. Fundamental

In terms of risk, meme coins and altcoins have completely different characteristics. Meme coins, on the other hand, are known to be highly risky due to their extreme volatility.

Many new tokens emerge simply by following a trend or short-term hype, without the support of a clear project behind them. Their value can surge sharply in a short period of time, but can also plummet once community enthusiasm subsides.

In contrast, altcoins tend to be more stable—though still subject to fluctuation—because they are built on a more concrete technological foundation and purpose.

Every price movement is usually influenced by project developments, innovations, or increased adoption in the blockchain industry.

To put it another way, meme coins are like viral challenges on social media, which can quickly rise in popularity but also quickly fade away once the trend shifts.

Altcoins, on the other hand, are more like tech startups, whose growth may not be as rapid as viral coins, but which have a clear direction and foundation for long-term growth.

So, even though they are both cryptocurrencies, the way they are treated is clearly different.

Conclusion

So, that was an interesting discussion about the 5 rarely discussed differences between meme coins and altcoins, which you can read more about in the INDODAX Academy’s Crypto Academy.

In conclusion, meme coins and altcoins are both part of the crypto world, but they stand on two different sides of the coin: one is rooted in internet culture, while the other is rooted in technology.

Both can have a place in an investor’s portfolio as long as you understand their functions and risks. So, if you want to join the trend, make sure you understand the reasons why.

By the way, besides gaining in-depth insights through various popular crypto education articles, you can also broaden your horizons through a collection of tutorials and choose from a variety of popular articles that suit your interests.

Besides updating your knowledge, you can also directly monitor digital asset prices on Indodax Market and stay up-to-date with the latest crypto news. For a more personalized trading experience, explore Indodax’s OTC trading service. Don’t forget to activate notifications so you don’t miss important information about blockchain, crypto assets, and other trading opportunities.

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FAQ

1.Are meme coins considered altcoins?
Technically yes, because everything other than Bitcoin is considered an altcoin. But meme coins are a subcategory with unique characteristics.

2.Which is better for long-term investment?
Altcoins are generally better suited for the long term because they are technology- and utility-based, while meme coins are more speculative.

3.Do meme coins have a future?
Some do, if they successfully build a real ecosystem and utility. But most are temporary.

4.Are all altcoins serious and have utility?
Not all. Some altcoins have failed or been abandoned. Therefore, research is still important before investing.

5.Can you have both in your portfolio?
Yes, as long as you maintain a balance. Use meme coins as experimental assets, and altcoins as a more stable portfolio foundation.

Author: Boy