The Ultimate Beginner's Guide to Alternative Chains

What Are Altchains?

Altchains, short for "alternative blockchains," are basically any blockchain other than Bitcoin or Ethereum.

They became popular around 2021 when Ethereum started struggling with high fees and scalability issues. To fix this, developers created altchains to make blockchains faster, cheaper, and ready for mass use. You’ve probably heard of Solana, Avalanche, or BNB Chain—these are just a few of the many altchains out there.

So before we dive deeper, let’s break down some basics to help you understand altchains better.

Layer 0

Layer 0 is like the base of a blockchain—the foundation that lets Layer 1 (L1) solutions connect and work together on the same network. Think of it as the groundwork that L1 blockchains are built on.
Example: Polkadot is a well-known Layer 0 protocol, making it easier for blockchains to interact and share data.

Layer 1

Layer 1 (L1) is just a fancy way of saying the main blockchain in a decentralized system. It’s the base network where all the action happens.
Examples: Bitcoin, Ethereum, and Solana.

Layer 2 / Sidechains

Layer 2 (L2) is like an add-on or third-party integration for a Layer 1 blockchain. It helps scale apps by moving transactions off the main chain (L1) but still keeps the same level of security and decentralization.
Example: Arbitrum is an Ethereum Layer 2 solution that makes things faster and cheaper.

Sidechains, on the other hand, are separate blockchains that run alongside a main chain, like Ethereum. The key difference is that sidechains have their own rules and consensus algorithms, while L2 solutions rely on the main chain’s security.
Example: Polygon (often functions as a sidechain).

Altcoins

Altcoins, or "alternative coins," are basically any cryptocurrency that isn’t Bitcoin. They come in all types, like utility tokens, DeFi tokens, NFTs, stablecoins, and even meme coins. Most altcoins don’t have their own blockchain and are usually created on altchains.

EVM (Ethereum Virtual Machine)

Ethereum created the Ethereum Virtual Machine (EVM), which is like a virtual playground for developers to build smart contracts. It makes smart contracts more functional without making them overly complicated. Many blockchains use EVM (like Polygon or BSC), and you can find a list of them on Chainlist.

Why This Guide?

This guide is for beginners who want to explore altchains. Maybe you’re completely new to blockchain, or maybe you already have some BTC or ETH and are looking to try out other chains.

How To Use Altchains?

1. Setup a wallet and obtain funds

i) Acquire initial crypto funds using a CEX

Getting Started with Crypto: It's a good idea to get your first crypto from a trusted centralized exchange (CEX). You can check out CoinGecko's Trust Score Ranking to see which exchanges are reliable.

Avoiding High Fees: With transaction fees being pretty high these days, especially on Ethereum, beginners with smaller budgets might want to start with Ethereum Layer 2 solutions or sidechains like Polygon or Arbitrum, or other Layer 1 blockchains that have lower fees.

Example: Solana
Let's use Solana as an example. First, buy some SOL tokens through your chosen CEX. Some exchanges let you buy SOL directly with your local currency (that's called a "fiat onramp"). If not, you might need to get some stablecoins first and then trade them for SOL. Once you've got your SOL, hold onto them. Next, we'll set up your own Solana wallet and transfer your SOL into it.

ii) Setup a private crypto wallet

Step 1: Choose the Right Wallet
Not all wallets work with every blockchain.

If you’re using Solana, you’ll need a wallet like Phantom.
If you’re on Ethereum or a Layer 2, MetaMask is a solid choice.
Tip: If you’re new, start with a browser wallet (easier to set up). For added security, consider setting it up in a separate browser profile to avoid phishing scams.

Step 2: Download & Install MetaMask

Go to the official MetaMask website → https://metamask.io/
Click “Download” and choose your platform (Chrome, Firefox, Edge, or mobile).
Install the extension (if on a browser) or the app (if on mobile).
⚠️ Important: Beware of fake MetaMask sites—only download from metamask.io to avoid scams!

Step 3: Create Your MetaMask Wallet

Open MetaMask and click “Create a Wallet.”
Set a strong password (something better than password123 😆).
Write down your Secret Recovery Phrase (12-word seed phrase).

This is your only way to recover your wallet.
Store it somewhere offline—not in a notes app, not on Google Drive.
Tip: If you lose your seed phrase, your wallet is gone. MetaMask cannot recover it for you.

Step 4: Fund Your Wallet
Now that your wallet is set up, you need some ETH (Ethereum) to start using it.

Option 1: Buy ETH Directly in MetaMask (via credit card/Apple Pay).
Option 2: Transfer ETH from a Centralized Exchange (CEX).
1. Go to your exchange (Binance, Coinbase, etc.)
2. Find the "Withdraw" section & select ETH.
3. Paste your MetaMask wallet address (Click on your wallet in MetaMask → Copy Address).
4. Double-check that you’re using the Ethereum (ERC-20) network.
5. Send the transaction and wait for the funds to arrive.
  ⚠️ Mistakes = Lost Funds. No undo button in crypto! Always verify the network and address before sending.

Final Tips for Staying Safe 🔐

✅ Always verify links before connecting your wallet. Fake sites exist!
✅ NEVER share your seed phrase. No legit support team will ever ask for it.
✅ Use a hardware wallet for storing large amounts of crypto.

2. Swap for altcoins

Whenever you transact on a blockchain, you’ll need to pay a small transaction fee—kind of like a service charge. But here’s the catch: you have to pay in the chain’s native token. On Solana, that means using SOL instead of ETH or any other coin.

Now that you’ve got some SOL in your Phantom wallet, you can:

✅ Use it to interact with dApps on Solana.
✅ Swap it for altcoins or stablecoins like USDT & USDC.

Using a Decentralized Exchange (DEX)
To swap tokens, you’ll need a DEX (Decentralized Exchange)—think of it as a crypto vending machine that lets you trade coins without a middleman. On Solana, one of the most popular DEXes is Raydium.

Here’s how you swap on Raydium in 3 simple steps:

Go to Raydium’s official site & connect your Phantom wallet.
Choose the token pair (e.g., swap SOL → USDC).
Confirm the transaction & pay the tiny SOL gas fee.

That’s it! Your new tokens should appear in your wallet in seconds.

⚠️ Beware of Fake Tokens & Scams! If you can’t find your altcoin, you might need to manually add its contract address. Always verify contract addresses on CoinGecko to avoid scam pools or honeypots.

3. What About Moving Funds Between Blockchains?

Want to move funds between different blockchains? You’ll need a bridge! Tools like Wormhole allow you to transfer assets across chains. We won’t dive deep into this here, but if you’re interested, drop a comment!

4. Track Your Transactions with Blockchain Explorers

If your transaction is stuck, delayed, or missing, use a blockchain explorer to check its status.

Ethereum: Etherscan
Solana: Solscan
Polygon: Polygonscan

Enter your wallet address to view history and check status (Success ✅ | Pending ⏳ | Failed ❌).
Tip: If a transaction is stuck, check gas fees—low fees can cause delays!

Stay Safe: Essential Crypto Security Tips

The crypto space is exciting but full of scams and hacks. Here’s how to protect your funds:

Use a Cold Wallet: Store private keys offline using a hardware wallet (e.g., Ledger Nano).
Avoid Fake Websites: Always double-check URLs before connecting your wallet.
Diversify Your Storage: Keep large funds in multiple wallets.
Ignore Suspicious DMs: Scammers lurk on Discord/Twitter—never share your details!
Update & Secure Passwords: Check for breaches on Have I Been Pwned and use strong, unique passwords.

Conclusion

Altchains offer faster speeds, lower fees, and new opportunities beyond Ethereum. Now you know how to set up a wallet, swap tokens, track transactions, and stay safe in the crypto space.

The best way to learn? Dive in and explore!

Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Always do your own research before making any crypto-related decisions. Crypto investments are highly volatile—invest wisely!

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