In case for the other investments asset, they will serve as a means for backing us up to have an alternative source of income, and if things does not really works out as expected with them as well, we revert back on our emergency fund and use for any urgent need arising, so having all these in place, we may not be able to consider touching our bitcoin investment as we continue to hold until the market gives the required signal for sell.
I don't see the need for diversification here since you're already investing in Bitcoin. Bitcoin investment will gives you more profits than any other investments you can ever think of, so it is important you concentrate fully on accumulating Bitcoin until you reached your accumulation target and nothing else because that's what's matters. Moreover it is also very wrong to use other assets as backup for emergencies as it doesn't add up. Our Emergency funds should be created alongside our Bitcoin portfolio using our discretional income and should only be Used to Sort out real life emergencies,I believe this is the best way of keeping our holdings untampered during our early accumulation stages. Meanwhile it is also important to hold for a longer period of 10years or more and shouldn't be monitoring the market for a signal to sell at an early stage.
It’s not a bad idea if as a bitcoin investor you decides to diversify into other business or investment sectors not related to bitcoins provided that you have what it takes to do so whereby it will not affect your bitcoin accumulation and holding in such a way that you start selling your bitcoins just to raise the money for your diversification. It is only not wise if as a bitcoin investor, you still choose to diversify into investing in other shitcoins or assets because at this point I don’t think what you’re doing is diversification again, knowing fully well the relationship between bitcoin and other shitcoins. Even most of this shitcoins depends largely on the performance of bitcoins even though most people argue about this, but the truth is that these shitcoins depends largely on the performance of bitcoin . So why chose to diversify into shitcoining as you may end up in a more higher risk instead of trying to manage the risks. The least you can do as a bitcoin investor, if you want to diversify, let it be in a sector different from bitcoin, there are so many areas where you can chose from such as estate and land, stocks, logistics etc. so I don’t think is a bad idea if as a bitcoin investor you chose to diversify into other sectors in order to enhance your risk management and mitigation because if one of the sector performs poorly, you can use the other sector to potentially balance or reduce the losses. In as much as you are diversifying, and also being consistent with your bitcoin accumulation and holdings, then nothing is wrong.
To diversify is also important but it depends on the way at which the diversification is taking place, some persons just have the mentality of diversify because they see others doing it without checking on themselves if they are fit to diversify, remember when you diversify you are protecting your initial investment from collapsing in future, the way you manage your investment matters a lot
As a new Bitcoin investor it is a wrong idea to reason diversification at your early stage of accumulation until you have gotten to a certain stage which you feel you can diversify, but if you are struggling to accumulate your portfolio, you are not doing well financially, it is adviceable not to diversify but keep accumulating until you can afford diversifying so that you don't end up losing both your already existing investment and your need investment.
Truly diversification is never a bad thing, it's a great idea because you are trying to not just protect your asset but you are trying to increase it from other source, the major problem about diversification is how is being done, that's where the problem lies.
You can't just start buying alt or meme coin and call that diversification away from Bitcoin, that's financial suicide, because those crypto can't replace Bitcoin, but if you are diversifying into real estate or gold it sounds logical, not alt or meme that falls more than they rise.
Furthermore, before diversifying into other reliable asset like gold, land and real estate you need to be stable in your Bitcoin investment first before thinking of other asset because too much distraction might limit the growth of any of them.