CLASS A: Bitcoin and Ethereum
You can put Bitcoin (BTC), and Ethereum (ETH) here, but if you are familiar with the market, they both work in patterns that may look similar. If you want to diversify, you can switch between them, but this does not guarantee the diversity we mean so you can classify these currencies in category A and you can include all Coins of similar category.
Just wondering, why only BTC and ETH? Few altcoin such as BNB and ADA are currently popular and have high market cap.
CLASS C: Smart contract tokens
They are protocols such as Ethereum, Binance Chain or Polkadot that allow using blockchain technology to develop decentralized applications and run smart contracts on its platform, so there will be a need to use such coins and they will become valuable.
Smart contract have lots of application, it's not limited on token. Simply saying "Smart contract" on your class is more accurate.
- Litecoin used to be a Top 5 coin. It's now in the 13th place.
- Steller is slowly dropping out of the Top 20.
- Monero and EOS have already dropped out.
- I remember that NEO was in the Top 10 a few years ago. It's sitting on #41 today.
- Iota, Dash, DigiByte, Verge have it even worse.
This does not mean, many of these coins increased more than bitcoin if you check the percentage of increase, but they are now falling more than bitcoin during bear run. Some people have Doge, Raven, Zilliqa and Digibyte in their portfolio and become rich by now. Altcoins are more risky but profitable during bull run.
I think he meant people shouldn't invest on coin only based on it's position. For example, Litecoin was clone of Bitcoin and have very few unique feature.