When people talks about diversity in crypto space they only point at big projects and small projects combined but no one ever talk about their life savings, I've seen people putting all they have into crypto and yes they have more than 5 coins in their portfolio but is this the smartest move?
Diversifying is not investing in multiple coin and you think you have diversified. What happened when the market goes into a bearish market and it last for years just like the previous that started 2018 and lasted until 2020 before the bulls came around again. Diversifying is recommended by investing in different asset that are not related like the stock market and cryptocurency or real estate.
Putting all your money in the market is risky because this is a very volatile market and you need money. If you put in your spare then that is doable since you would not have to worry about the movement of the market since you already have money for your other activities and this is the best was if investing.