Imagine if the investor had invested in Bitcoin, no matter how deep the chart gets it will surely bounce back and there's certainty that he'll get his money back as well as some profit, but in this case his investment is gone and gone forever. My advice to newbies is that you shouldn't be carried away by memecoins because of the price swings. They are dangerous, not worth it and the risks outweigh the gains.
There is a popular saying that any thing good takes time and it's worth waiting for. The bull is around the corner, invest in Bitcoin instead and HODL.
Lack of understanding and greed will always be the reason why beginners will prefer to invest in shitcoins. Some people believe if they should invest in shitcoins they can quickly realise profit but not knowing that most of the new project may likely crash in the crypto market. There is good profit investing bitcoin expecially when you buy bitcoin in the bear market and hodl it for sometime it will surely give you a better profit. Investing bitcoin is not even just about profit but Investing in an asset that is very reliable for investment.
Their is no shitcoin that increases in value overnigh, the hodling process is still applied to it and i don't know why people still feel it takes a lot of time to still make profit from Bitcoin.
I agree with your statements and left for me I'll rather start my portfolio with a Cryptocurrency that I'll still gain after a dip and I also think that instead of newbies to rush into investing in some shitcoins cause of greed they should rather focus on getting more knowledge about Bitcoin and invest on it before they would think of diversifying at their own risk on the long run.
No matter how promising some shitcoins may look, Bitcoin still remains the best Cryptocurrency for investment, that's why most institutions and whales invest more on it compared to others, some shitcoins sometimes looks so tempting and their owners even hire influencers to hype them but a good investor would always priotise Bitcoin more than other Cryptocurrencies when it comes to investment purpose.