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

After a brief decline in March and April, Bitcoin (CRYPTO: BTC) is back. It's now up more than 12% for the year, and hit a new all-time high of $112,000 on May 22. Historically, a rally in Bitcoin has led to a rally across the entire crypto market.

That's the good news. The bad news is that not all cryptocurrencies are going along for the ride. Here are three that I'm avoiding for now.

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Dogecoin

Even after a stunning 24% rally during the past 30 days, Dogecoin (CRYPTO: DOGE) is still down 33% for the year. And, if you zoom out, things look even more worrisome for Dogecoin.

Ever since it hit an all-time high in May 2021, this meme coin has never been the same. Dogecoin now trades for a paltry $0.21, and shows no signs of ever hitting the $1 mark. In fact, in more than a decade, Dogecoin has never traded higher than $0.74.

Image source: Getty Images.

Moreover, the best potential catalyst for Dogecoin price appreciation in 2025 -- Elon Musk's establishment of the Department of Government Efficiency (DOGE) -- now seems to be fading away. While there was never any link of any kind between DOGE the cryptocurrency and DOGE the government entity, the two somehow got blended together in the minds of many investors.

If exciting things are happening at DOGE, exciting things are supposed to be happening for DOGE. That's the 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 more than one occasion that he would be bringing big things to Dogecoin. These hints intensified after he acquired Twitter (now called X). But now we can safely put that narrative to rest.

Cardano

Cardano (CRYPTO: ADA) is another cryptocurrency that got a lot of buzz during the previous altcoin rally in 2020-2021. But it has also struggled to do anything during the past four years. Cardano is still trading for less than $1, years after it hit an all-time high of $3.10 in September 2021.

Granted, there are glints and glimmers of a big Cardano comeback, but I just don't see it happening anytime soon. Even Charles Hoskinson, the founder of Cardano, has admitted as much. As he sees it, Cardano is "stuck." It's just having too much difficulty gaining any sort of traction.

Cardano was supposed to be the heir apparent to Ethereum (CRYPTO: ETH) as the premier Layer 1 blockchain network in the world. However, it has now been passed by other blockchain rivals, including Solana (CRYPTO: SOL).

Litecoin

Finally, there's Litecoin (CRYPTO: LTC), which briefly reigned as the top-performing cryptocurrency of 2025. It did so on the basis of the expectation that it would become the first major cryptocurrency to get a new spot exchange-traded fund (ETF) in early 2025, similar to the ones created for Bitcoin in January 2024.

But, alas, that looks like it's not happening anytime soon. According to industry ETF watchers, the soonest that the Securities and Exchange Commission is likely to approve a spot Litecoin ETF is now fourth-quarter 2025. Unfortunately, tariff uncertainty and the resulting macroeconomic confusion could force the SEC to put off any ETF approvals for the foreseeable future.

Litecoin has been an underperformer for years. It's now trading 77% below its all-time high from May 2021. By way of comparison, cryptocurrencies such as Bitcoin have been soaring to new all-time highs. So, if you're absolutely salivating at the opportunity to invest in Litecoin at a "bargain" price below $100, might I suggest Bitcoin instead?

A history of underperformance

Full disclaimer: At one time or another, I've held all three of these coins in my crypto portfolio. Each time, I've been burned and disappointed. All of them have promised game-changing innovations and the potential for huge price gains. But have they delivered? No.

In fact, all three of these cryptocurrencies are trading well below their historical highs. All of them continue to underperform Bitcoin, the market bellwether. And all of them show little sign of turning things around anytime soon. As a result, you can safely avoid Dogecoin, Cardano, and Litecoin if you are looking to optimize your portfolio returns in 2025.

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Dominic Basulto has positions in Bitcoin, Cardano, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Cardano, Ethereum, and Solana. The Motley Fool has a disclosure policy.