In my situation as a student, I still do not hold a lot of money. With that, it is better for me to save money and make it available anytime. In the future, if I already have a job and source of income, I can have more savings and maybe divide it and use the half for investment.
Yes, the more diversified your portfolio is, the more chances of making sound profits is there. Saving and investing should walk hand in hand to keep the owner in stable financial states. Saving with bitcoins is really great way of increasing your income and probably the best way of saving money for hard times.
I dont agree with that, if that guy has $200 he can diversify too much. What is he gonna buy? 10 coins? $20 of each altcoin?
I think that diversify is only if you have more than $2k. For example i have all my portfolio in 4 coins, i think that is fair, if one of the coin drop a lot, then you can easily recover it with the other three.