Common wisdom for new investors is always of the 'don't put all your eggs in one basket' type. Don't invest all your investment capital in one company. Diversify so that at least if one investment fails, the other will carry you through. Is there a similar type of advice for crypto currency investors? Is it better to concentrate on investment in just one crypto currency? Or should we diversify? I would love to know what others have to say about this.
It all depends on how much money you have. The more you have the more diversification you will need. If you have at most couple hundred bucks than you do not have to, I mean you can still get couple coins but don't really need to diversify $200 at all. If you have couple thousand dollars than you can diversify in crypto and get tens of different coins and you can spend most of your money on known coins and put smaller amounts for some new coins that has a potential to skyrocket in the future (only put up like 1% of your investments into these).
If you have hundreds of thousands of dollars (which I have seen in crypto world some people have it) than you should surely diversify outside of crypto as well, put up some of it to stocks, others into bonds, some into golds and even real estate lands if you can afford to. Putting all of your money is a bigger risk if you have a lot of money, if you diversify into multiple stuff than you will be safe from any drops in one of them.