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Diversifying is a good idea, but measures need to be taken before venturing into any investment or business. That can be met if after taking partial profit from your bitcoin holdings, ensuring not to offset your Bitcoin accumulation process and account, you use the profits to invest into a prospective business you have knowledge of this will help to balance your goals too. Though there is no guarantee that such business will yield more in the early phase but overtime it will be worth it. This is the best approach for me on how to use some of our profits made.
Also ensuring a reinvestment into your Bitcoin holdings.
Yes, there is a decent amount of personal discretion in making and following through with these kinds of decisions regarding, when, where and how to invest your money - perhaps based on BTC growth and or some needs (or feelings) to not have all of your investments in a narrow set of assets, such as ONLY in dollars and cash.. or maybe even if you have one or two other things, you might not feel comfort in that, especially if your BTC investment might have already been growing for a decent amount of time, such as 10 years or more.
Hopefully any of us would be attempting to tailor our own approach to BTC allocations and/or reallocations and/or diversification in terms of of our own working through of our
9 factors.
Surely another factor of diversification is that people come into bitcoin and they erroneously believe that they need to diversify early on in their investment, which truly is not correct, yet it can be difficult to know exactly how and what points to diversify, which largely means that individuals have to figure out these kinds of matters for themselves, and hopefully they can come to the right kinds of balances, especially if they are figuring out how much discretionary income they have (or other money that they have saved up/invested), so how much capital they have can also affect how reasonable it might be to diversify, and hopefully not getting distracted into shitcoins either, except maybe if they feels some irresistible urges to gamble with shitcoin then they would not invest anymore than 10% of the size of their bitcoin investment (and hopefully not cheating either in terms of draining their BTC investment by divertiing BTC funds into crap that is losing value).
Diversification can be a tricky idea for newbies making them feel that theu have better luck for progress or to be rich by putting their eggs in several basket but also making them forget that the more you invest the more profit you should expect if eventually the asset does well, when it comes to bitcoint its has become so obvious that if you don't have a good stash or have not accumulated enough bitcoin then you should bother less about any price increase.
And what those that think about diversification too early forgets to consider is if they can handle diversification, yeah surely there are some persons that are already well built in terms of finance and have enough money to both funds investing in bitcoin and another asset without cheating his bitcoin investment and there is also another that has only enough for one asset and if he tries to diversify would end up cheating bitcoin, and surely people tend to forget that the game of getting rich is all about concentration in the sence i mean having enough in one asset that would be able to generate profits for you and then you can use that profit to build other asset.
IMO while diversification may be good it's not the best for anyone just starting out his bitcoin investment cause he should only focus on having enough bitcoin to prepare for up and then if it goes well he woul ld have enough to build other asset.