Bitcoin Is Surging, but Not All Cryptocurrencies Are a Safe Investment. Here Are 3 to Avoid

After a transient decline in March and April, Bitcoin (BTC -1.43%) is again. It is now up greater than 12% for the 12 months, and hit a new all-time excessive of $112,000 on Might 22. Traditionally, a rally in Bitcoin has led to a rally throughout your complete crypto market.

That is the excellent news. The dangerous information is that not all cryptocurrencies are going alongside for the trip. Here are three that I am avoiding for now.

Dogecoin

Even after a beautiful 24% rally through the previous 30 days, Dogecoin (DOGE -8.00%) continues to be down 33% for the 12 months. And, should you zoom out, issues look much more worrisome for Dogecoin.

Ever because it hit an all-time excessive in Might 2021, this meme coin has by no means been the identical. Dogecoin now trades for a paltry $0.21, and exhibits no indicators of ever hitting the $1 mark. Actually, in additional than a decade, Dogecoin has by no means traded larger than $0.74.

Picture supply: Getty Pictures.

Furthermore, the perfect potential catalyst for Dogecoin worth appreciation in 2025 — Elon Musk’s institution of the Division of Authorities Effectivity (DOGE) — now appears to be fading away. Whereas there was by no means any hyperlink of any sort between DOGE the cryptocurrency and DOGE the federal government entity, the 2 in some way acquired blended collectively within the minds of many buyers.

If thrilling issues are occurring at DOGE, thrilling issues are supposed to be occurring for DOGE. That is the best way meme coins work — they’re all hype and buzz, but no substance.

Musk famously referred to himself as “The Dogefather” in 2021, and has hinted on social media on a couple of event that he can be bringing massive issues to Dogecoin. These hints intensified after he acquired Twitter (now known as X). But now we will safely put that narrative to relaxation.

Cardano

Cardano (ADA -4.66%) is one other cryptocurrency that acquired a lot of buzz through the earlier altcoin rally in 2020-2021. However it has additionally struggled to do something through the previous 4 years. Cardano continues to be buying and selling for lower than $1, years after it hit an all-time excessive of $3.10 in September 2021.

Granted, there are glints and glimmers of a massive Cardano comeback, but I simply do not see it occurring anytime quickly. Even Charles Hoskinson, the founding father of Cardano, has admitted as a lot. As he sees it, Cardano is “caught.” It is simply having an excessive amount of issue gaining any type of traction.

Cardano was supposed to be the inheritor obvious to Ethereum (ETH -1.75%) because the premier Layer 1 blockchain community on this planet. Nevertheless, it has now been handed by different blockchain rivals, together with Solana (SOL -5.07%).

Litecoin

Lastly, there’s Litecoin (LTC -6.27%), which briefly reigned because the top-performing cryptocurrency of 2025. It did so on the premise of the expectation that it could develop into the primary main cryptocurrency to get a new spot exchange-traded fund (ETF) in early 2025, related to the ones created for Bitcoin in January 2024.

But, alas, that appears prefer it’s not occurring anytime quickly. In accordance to trade ETF watchers, the soonest that the Securities and Alternate Fee is probably going to approve a spot Litecoin ETF is now fourth-quarter 2025. Sadly, tariff uncertainty and the ensuing macroeconomic confusion may drive the SEC to delay any ETF approvals for the foreseeable future.

Litecoin has been an underperformer for years. It is now buying and selling 77% beneath its all-time excessive from Might 2021. By means of comparability, cryptocurrencies equivalent to Bitcoin have been hovering to new all-time highs. So, should you’re completely salivating on the alternative to spend money on Litecoin at a “cut price” worth beneath $100, may I counsel Bitcoin as a substitute?

A historical past of underperformance

Full disclaimer: At one time or one other, I’ve held all three of those cash in my crypto portfolio. Every time, I have been burned and disenchanted. All of them have promised game-changing improvements and the potential for large worth positive factors. But have they delivered? No.

Actually, all three of those cryptocurrencies are buying and selling nicely beneath their historic highs. All of them proceed to underperform Bitcoin, the market bellwether. And all of them present little signal of turning issues round anytime quickly. As a outcome, you may safely keep away from Dogecoin, Cardano, and Litecoin if you’re wanting to optimize your portfolio returns in 2025.