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How should i diversify my crypto portfolio?

I feel like im gambling by going all in one crypto like ETH and the drops are hitting me very hard with its high volatility compared to BTC

Majority here will think that it's better to invest most in BTC, there are old school thoughts that at least 60% will be in BTC and the rest should be divided on solid altcoins like ETH, BNB etc.

But if you don't like volatility, I mean if you are afraid that your portfolio going down hard when the market crashes, then you should diversify to other assets such as stocks, gold or even real states. But then again, you should need a huge capital if you want to do that.

Investing in some of the top altcoins is fine however to do so with the intent of reaching some level of diversification is at least to me a mistake, because that is not really the way in which you can truly diversify your capital, and as you said if that is what you want then you need to use other markets in other to reach that goal, however this can also be a risk as the economy is not doing well and we could watch an overnight crash of the stock market and your losses could be massive despite the diversification strategy you were using.

In my opinion, diversification is the diversification of different investments like cryptocurrencies, stocks, gold... that's really called diversification to reduce risk. We split our capital to invest in bitcoin and altcoins, which is the right thing to do but it's clearly not a diversified form of investment.
The crypto market is completely dependent on bitcoin so when you hold altcoins it is also very difficult to avoid losses if bitcoin drops in price so diversification in this case will be less effective.
@OP if you are afraid to hold ETH then you better move your assets to BTC, BTC is the best choice in crypto.

The only reason that made me worry about ETH is that $890 drop while bitcoin held $17k which i had imagined it might happen again, i had also entered ETH at 1.1k - 1.4k - 1.7k