Diversifying is a new meaning when it comes to crypto currency. Alot of crypto coins out there now. is it the generation of diversifying your portfolio. Now the average investor don't have to invest in Bitcoin if they don't want to. They got dapp coins. Privacy coins. Cloud coins. So many coins. U don't need to invest in one place anymore. Any bull run can give u net gains of over 2000% in a single night. Only if targeted by luck.
Diversifying will ensure that your luck to favor you regardless of one of two assets in your portfolio may fail to perform as per your expectations. The purpose of having more variety of assets in portfolio is balancing profits and losses in perspective thinking this way we may try our luck factor to be in favor of us all the times.
If you are referring diversifying in terms of price levels but with same crypto, that is being termed as "averaging". Diversifying is all about dealing with multiple coins/assets or even with multiple types of investments like 25% in crypto and 10% in real-estate kind of spreading out way of our capital. Hence, it has nothing to do with same crypto.