Retirement Investment Pitfalls: Why These 3 Coins Should Not Enter Your Long-Term Portfolio

Allocating a small amount of funds in cryptocurrency can indeed help grow your retirement savings, but only if you choose the right projects. Some coins may occasionally surge, but their underlying risks are enough to destroy your retirement plan. According to analyst Lyle Daly’s observations, the following three coins represent the most common pitfalls in investment.

Industry Status: The 5% Rule of Crypto Allocation

A reasonable crypto allocation (no more than 5% of total assets) can theoretically help investors achieve returns surpassing traditional stock markets. But this depends on selecting projects with real use cases and unique innovations. Many people make fatal mistakes at this step.

The First Pitfall: Dogecoin (DOGE) — Collapse After Hype Fades

Dogecoin was originally created as the first “meme coin.” In 2013, its founder launched the project based on the doge meme, intending to satirize the over-serious attitude toward cryptocurrencies.

The problem is: meme coins have no real utility. Dogecoin’s value depends entirely on community hype and celebrity influence. When Elon Musk mentioned it during his 2021 SNL performance, DOGE soared to a historic high of $0.73. But the story turned harsh — its current trading price is about $0.15, down over 80% from the peak, with a 60% decline in the past year alone.

Key issue: Once hype dissipates, these coins become gambling games. Unlike other mainstream coins, Dogecoin lacks any underlying technological innovation or ecosystem support. For retirement investors, such highly speculative assets are ticking time bombs.

The Second Pitfall: Ethereum Classic (ETC) — A Version Outdated by History

In 2016, Ethereum suffered a severe hack, with $500,000 stolen. The Ethereum Foundation made a controversial decision: to rollback the blockchain and rewrite history.

Some supporters who insisted on the principle of “immutable blockchain” refused to accept this decision and continued to maintain the original chain, now known as Ethereum Classic.

From an investment perspective, the outcome of this split is clear:

Numbers speak volumes. Ethereum has become the dominant player in DeFi ecosystems, while Ethereum Classic has become a fringe project. Choosing ETC over ETH is essentially betting on a project voted out by the market.

The Third Pitfall: Worldcoin (WLD) — Privacy Risks and Investment Losses

Worldcoin was founded by OpenAI CEO Sam Altman. Its novel concept involves scanning irises with a device called “Orb” to verify human identity, distinguish real humans from AI bots, and reward users with WLD tokens.

The idea sounds promising, but reality is awkward:

• Regulatory challenges: Countries like Spain, Brazil, and Kenya have investigated or banned the project, mainly due to concerns over privacy and biometric data security.
• Investment performance: Since its launch in 2023, WLD has fallen nearly 70%, with a current price around $0.60, a 75% drop in one year.
• Adoption failure: The project aimed to verify 50 million people by the end of 2025, but has only completed less than 18 million.

When a project’s fundamental promises cannot be fulfilled, where can its token value go?

Why Long-term Investors Should Stay Away from These Three Projects

Retirement investing most avoids speculation. These three coins share obvious common points:

1. Lack of real utility — either purely entertainment (Dogecoin) or replaced by better versions (Ethereum Classic).
2. Lagging technology or ecosystem — widening gap with market leaders.
3. Regulatory and reputation risks — privacy issues with Worldcoin could trigger regulatory storms at any time.

Investment Advice

If you truly want to allocate some retirement funds into crypto assets, the safest approach is:

• Choose projects with real use cases and ongoing innovation.
• Focus on market leaders (good liquidity, mature ecosystems).
• Strictly control your position size, not exceeding 5% of total assets.
• Regularly evaluate the fundamental changes in your holdings.

Dogecoin, Ethereum Classic, and Worldcoin are all “sound promising but untrustworthy” investments. To protect your pension, it’s best to keep these coins out of your portfolio forever. Analyst Lyle Daly’s conclusion is worth noting: true wealth accumulation comes from choosing projects with real value, not chasing fads.