Altcoins Rise After Bitcoin’s Early 2021 Surge
How Ethereum, Litecoin and XRP followed Bitcoin higher
Altcoins Rise After Bitcoin’s Early 2021 Surge
Altcoins are cryptocurrencies other than Bitcoin. The word mixes “alternative” and “coin”. Ethereum, Litecoin and XRP are well-known examples.
In early January 2021, Bitcoin rose past $34,000. Many altcoins climbed with it. Ether, the coin of Ethereum, passed $1,000 for the first time since 2018. This page looks at that rally, explains how altcoins work and covers what has changed since.
Update: This story is a snapshot from early 2021. We do not quote current prices here because they change every minute. Check a live price source before you buy or deposit any coin.
What Is an Altcoin?
Bitcoin was the first cryptocurrency. Every other coin that followed is an altcoin. Some copy Bitcoin’s design with small changes. Others do something quite different.
| Coin | What it is known for |
|---|---|
| Ethereum (ETH) | A blockchain that runs smart contracts and apps. It launched in July 2015. |
| Litecoin (LTC) | An early Bitcoin spin-off made for faster, cheaper payments. |
| XRP | A digital asset linked to the XRP Ledger, used for fast transfers. |
There are thousands of altcoins. Most are small and carry high risk. A few have lasted for years and have large user bases.
Why Altcoins Often Follow Bitcoin
When Bitcoin rises, interest in crypto grows. New buyers often start with Bitcoin. Some then look at other coins that cost less per unit or offer different features.
As a result, altcoins often move in the same direction as Bitcoin. This pattern is common but not guaranteed. Altcoins can also fall faster when the market turns.
Sudden rallies attract new investors. They also attract risk. Prices that jump quickly can drop just as fast, so many experts urge caution.
Ethereum and Blockchain Technology
Ethereum has long been the second-largest cryptocurrency by market value. It was built to do more than move money. Its blockchain can run smart contracts, which are small programs that carry out an agreement automatically.
A blockchain is a shared record of transactions. Every new entry is added to the chain and checked by many computers. This makes the record very hard to change. It also makes the transactions transparent.
Ethereum introduced many people, and many online casinos, to blockchain technology. Our guide to Bitcoin casinos explains how crypto fits into online gambling.
Changes Since 2021
Ethereum has changed a lot since this story first ran. On 15 September 2022, it completed an upgrade called the Merge. The network moved from proof of work to proof of stake.
US regulators also changed course. They approved spot Bitcoin ETFs in January 2024. Spot Ether ETFs followed, and they were cleared to begin trading on 23 July 2024.
These funds gave ordinary investors a new way to hold crypto. They did not remove the risk. Prices still swing widely.
Using Altcoins at Online Casinos
More casinos now accept crypto beyond Bitcoin. Players choose altcoins for several reasons.
| Benefit | Why it matters |
|---|---|
| Speed | Many crypto withdrawals are quicker than bank transfers. |
| Lower fees | Some coins cost less to send than Bitcoin. |
| Privacy | Crypto does not require a card or bank link. |
| Choice | You can pick a coin that suits your wallet. |
Accepted coins vary by casino and can change. Always open the cashier to see the current list before you deposit.
Crypto Casinos We Cover
Several of our reviewed casinos work with crypto. BitStarz is one of the best known. Winz Casino offers crypto play with cashback. Justbit is built around crypto deposits.
US players may prefer BetUS Casino and Sportsbook. Check the terms for your own country first.
Our guide to instant withdrawal crypto casinos compares speed in more detail. New players can start with our beginner’s guide to Bitcoin casinos.
Bitcoin and Altcoins Compared
The two groups share the same basic technology. They differ in purpose, speed and risk.
| Feature | Bitcoin | Typical altcoin |
|---|---|---|
| Main purpose | Digital money and store of value | Varies by coin |
| Age | Launched in 2009 | Mostly newer |
| Market size | The largest crypto | Usually smaller |
| Price swings | High | Often higher |
| Casino support | Very widely accepted | Accepted at many crypto casinos |
Bitcoin is the safer starting point for most beginners. It has the longest track record. Altcoins can suit players who want faster payments or lower fees.
Types of Altcoins Explained
Not every altcoin does the same job. A few broad groups help you understand what you are buying.
- Payment coins aim to move money quickly and cheaply, like Litecoin.
- Platform coins power networks where developers build apps, like Ether.
- Stablecoins try to hold a steady value against a currency such as the US dollar.
- Meme coins start as jokes and often rely on hype rather than use.
Each group carries different risks. Platform coins depend on real use of their networks. Meme coins can lose most of their value overnight. Stablecoins aim to stay steady, yet they carry their own issuer risks. Understand the group before you choose a coin for casino play.
Choosing a Coin for Casino Play
Pick a coin that the casino accepts and that you already understand. Do not buy a new coin only because a casino lists it. Look at fees, speed and the network the casino uses.
Many players keep a small balance in one coin. They deposit, play and withdraw in the same coin. This avoids extra conversion fees and keeps things simple.
How to Deposit Crypto at a Casino
The process is similar at most crypto casinos. It takes only a few minutes once your wallet is ready.
- Open the cashier and choose your coin.
- Copy the deposit address shown by the casino.
- Send the coins from your wallet or exchange.
- Wait for the network to confirm the transfer.
- Check that the balance appears in your account.
Always check which network the casino expects. Sending a coin on the wrong network can lose your funds. Start with a small test deposit if you are new to this.
Which Altcoins Will Survive?
Nobody can answer this with certainty. Bitcoin and Ethereum have different goals. Bitcoin acts mainly as digital money and a store of value. Ethereum aims to run apps and smart contracts.
Success depends on two big things. The first is regulation. Governments keep changing their rules for crypto. The second is market volatility. Prices can move sharply in hours.
A coin with a strong user base and clear purpose has a better chance. Even so, it can still lose value. Never bet more than you can afford to lose.
Understanding Volatility
Volatility describes how fast a price moves. Crypto is far more volatile than normal currencies. A coin can gain or lose a large share of its value in a single day.
This matters for gambling in two ways. First, your balance can change in value even when you are not playing. Second, a win in one coin can be worth less by the time you withdraw it.
Some players reduce this risk with stablecoins. These are coins designed to track a currency such as the US dollar. Many crypto casinos accept them, but you should check the cashier and read the terms.
What the 2021 Rally Taught Players
The early 2021 surge showed how quickly crypto sentiment can change. Prices climbed fast, and new buyers rushed in. Many players then discovered crypto casinos for the first time.
That rush also taught a lesson about risk. Big gains can disappear quickly. Players who treated crypto as entertainment money fared better than those who chased prices.
The same lesson applies today. Keep your gambling budget separate from your investments. Decide your limits before you play, and stick to them.
Risks of Gambling with Crypto
| Risk | What to do |
|---|---|
| Price swings | Keep your balance small, or cash out to your wallet after wins. |
| Wrong network | Send coins on the network the casino asks for. |
| No refunds | Check wallet addresses twice. Crypto transfers cannot be reversed. |
| Bonus terms | Read how bonuses work with crypto deposits. |
Keep these points in mind:
- Use a licensed casino with clear terms.
- Test with a small deposit first.
- Set a budget before you play.
- Keep your wallet details private.
- Remember that crypto gains and losses can have tax effects in your country.
Our guide on crypto gambling questions answers more common queries. You can also read why players bet with Bitcoin and how Bitcoin gaming has grown. For the software side, see the top crypto game providers.
Frequently Asked Questions
What is an altcoin?
An altcoin is any cryptocurrency other than Bitcoin. Examples include Ethereum, Litecoin and XRP.
Did Ethereum pass $1,000 in 2021?
Yes. Ether passed $1,000 in early January 2021. It was the first time since 2018.
What was the Ethereum Merge?
It was a September 2022 upgrade. Ethereum moved from proof of work to proof of stake.
Can I deposit altcoins at an online casino?
Many crypto casinos accept altcoins. The list of accepted coins varies, so check the cashier.
Are altcoins risky?
Yes. Prices can move sharply, and smaller coins carry the most risk. Only use money you can afford to lose.
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