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?
Personally I think the smartest move is to have some funds offline as well, if you know what diversity means then you should be smart enough bro know that nothing is guaranteed, have some money 💰💰 offline and some online (crypto and other), putting all your eggs in one basket is bad and too much of everything is also bad
You are right though, and also many people have their own definition of diversity, that is, some might be experts in trading, good in investing in upcoming projects which they sell once in profit, good in holding long term and more recently now, good in staking their assets to earn, but all these doesn't neglect the fact that, crypto is unpredictable and yes having funds offline is a good idea.
Also, it has been said a lot of times that, it is not good to invest more than you can afford, in fact the first lesson people should have at the back of their minds before getting involved with crypto is that, risks exists. So by Investing what you can afford you can be calm while waiting for your target to hit, thereby reducing risks.