1 Type of Cryptocurrency to Avoid at All Costs in 2026

By Lyle Daly – Mar 25, 2026 at 7:06PM ESTKey PointsMeme coins are popular because of the potential for life-changing returns.But only a tiny fraction of meme coins have any success, and finding them is mostly a matter of luck.The crypto market is massive, and there are many different types of cryptocurrencies you can buy. Ethereum and Solana are smart contract platforms, and XRP is a payments coin, among others. Bitcoin is so large that it has effectively created its own category. You may want to invest in several types to build a diverse crypto portfolio, and with most of the market going through a downturn, now is a good time to buy the dip. However, you're better off avoiding one popular type of cryptocurrency: meme coins. Image source: Getty Images. A meme coin is any cryptocurrency that doesn't take itself too seriously. Dogecoin (DOGE +1.17%) was the first, and it was based on the popular "Doge" meme. Shiba Inu (SHIB 1.00%), another popular meme coin, based its dog-themed image on Dogecoin -- originality isn't required in this space. Apart from a fun marketing theme, the appeal of meme coins is that when they take off, they can deliver life-changing returns. Dogecoin increased by over 27,000% in a six-month span from November 2020 to May 2021. Shiba Inu increased by over 70,000,000% over the first 10 months of 2021. However, reliably finding meme coins that are going to explode is next to impossible. There are thousands of them already, and platforms like Pump.fun allow anyone to launch their own meme coins in less than a minute. Only a very small percentage of meme coins achieve any success, and when they do, it rarely lasts long. For example, after Dogecoin reached its all-time high in May 2021, it lost over half its peak value in a matter of weeks. ExpandCRYPTO: DOGEDogecoinToday's Change(1.17%) $0.00Current Price$0.10Key Data PointsMarket Cap$15BDay's Range$0.09 - $0.1052wk Range$0.08 - $0.30Volume1.2B The best cryptocurrency investments have legitimate use cases. Meme coins are much more similar to gambling than investing, which is why they don't deserve a place in your portfolio.Read NextMar 20, 2026 •By Anders BylundThe SEC Just Drew a Line in the Crypto Sand: What's a Security and What's Not?Mar 18, 2026 •By Dominic BasultoMillionaire Investors Are Buying Meme Coins.

Should You Be Too?Mar 18, 2026 •By Adam SpataccoCan Dogecoin Really Hit $0.50 in 2026? I Ran the Numbers -- the Answer Shocked MeMar 16, 2026 •By Chris MacDonaldDogecoin Has the Zoomies Today. Here's Why This Meme Coin Surged More Than 6%.Mar 14, 2026 •By Leo SunIs Dogecoin a Millionaire-Maker Cryptocurrency?Mar 13, 2026 •By Kristi WaterworthWhen Is the Best Time to Buy Cryptocurrency?About the AuthorLyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.TMFLyleDalyX@LyleDalyStocks MentionedDogecoinCRYPTO: DOGE$0.10(+1.17%)+$0.00BitcoinCRYPTO: BTC$71,290.00(+0.65%)+$457.99EthereumCRYPTO: ETH$2,167.29(+0.16%)+$3.45XRPCRYPTO: XRP$1.41(-0.29%)-$0.00Shiba InuCRYPTO: SHIB$0.00(-1.00%)-$0.00SolanaCRYPTO: SOL$91.69(+0.67%)+$0.61Pump.funCRYPTO: PUMP$0.00(+3.64%)+$0.00*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.