If you invest small amount then don't expect huge profit immediately. Your patience and your skills will be put in test so be prepared. Long term investment is the best if you have a very limited capital in your hand.
Long term investment may be a good option but if you are not that patient then you have to trade to make your capital higher but as what you said, it will be put to test because when you think of having more capital thus more profits, you would become greedy and wait for some more profits so that you can have a higher capital however it may not work in your favor. This is just one of the challenge of having small capital.
With small capital you have to think a lot so invest how you can be enough with your small amount and more you can hardly invest in diversification you have to plan to fit with capital.
It would be hard to diversify if you have small capital because you may not be able to qualify for a minimum amount of bitcoin to trade. Diversification is one of the risk management strategy so that you can hedge if ever some coins are in profit or at a loss so you are still in break-even but you can't do it when you have small capital.