I think investing all your savings in crypto is not good because crypto is risky. If you are beginner in trading I suggest you to start first at small. Only invest what you are willing to lose.
What you say is correct, crypto has certain risks, if we put all the savings into it, our money will always be in a dangerous state, and the loss will be great, many people will not be able to bear this loss and go to negative thoughts, maybe they will end their life. So, as you say, starting with a small amount of capital, when we have had enough experience, greater investment but never should be all, that will help us not fall into the worst situation when we fail, and we will still have money to start rebuilding