We diversify our investments by investing in different coins so that if the price of one coin goes down then we can cope up with it from our investments in another coin.I totally agree with you that if the investor has a small capital then how he can diversify his investments? If he will try to diversify his investments with a small capital then he will be able to invest a very little amount in every coin.But I think that it will be a more better choice than investing everything in one coin.It will be more safe and more profitable.
Diversifying our investment is good decisions but we should handle it carefully by choosing a good project to invest. Indeed it will be more safe investing into different coin than focusing only in one coin to minimize risks.
diversify our asset into several coins make us distributed between risk and profit.if we one coin down, another coin could gain profits.so this is why diversify important for us.