I also agree i think that diversification should be recommended but some people just buy too much i am guessing that it is because they can afford it however investing in too many projects might distract you from all the other projects
Research dutifully and only invest in ones you think have the greatest potential to give you most profit instead of dividing your money to so many different ones
Diversification should not be done carelessly because everything certainly requires research in accordance with the project to be chosen to invest. Research dutifully and only invest in ones you think have the greatest potential to give you most profit instead of dividing your money to so many different ones
Diversification in general aims to mitigate risk while reducing volatility in investment portfolios over time.
Too many projects will indeed distract and not focus on the main project.
But this requires good management, the chosen project is a project that is trusted and already has good development,
so it has the potential to provide profits when the market is bullish.
Examples like holding ETH, SOL, ETC, BNB and some other altcoins that I think it needs to be included in my investment portfolio.
But the main investment is still Bitcoin with the largest amount of investment.
See in this image illustration
Source: https://pintu.co.id/academy/post/cara-diversifikasi-crypto
It's like there are 3 types of food that describe the category of each coin to be invested.
Each food menu has several toppings and other side dishes.
Bitcoin is the main dish menu with more portions than others.