Well I am not sure for others but for me I think investors especially new investors should focus on Bitcoin investment first and keep accumulating as much as they can because managing multiple investment requires a certain level of experience and financial stability. So before diversifying you should ensure that your investment goals are clear and won't be compromised. If it will be affected then it's better to prioritize accumulating more Bitcoin until you have achieved what you are set out to do or at least reach a certain level that won't be affect your goals.
No need to rush into diversifying, there is no deadline. You can always diversify when it's safer.
This is what people don't understand, the word diversification should come in when you've gone to the level of your satisfaction in Bitcoin and even if you have too, you would have to weigh options before diversifying, when I said weigh options, I mean trying to know if what you are diversifying to is better or will be better than Bitcoin so that you go wasting your time while you are supposed to concentrate on Bitcoin alone, personally I keep saying it am not a fan of any altcoin out their, if one wants to diversify it should be in other stuffs, I know people will say it is not a nice idea for one to put all his eggs in one basket yea this may sound nice but how sure are you about the other basket that you want put or shield I say lay lay your eggs, how secured and trustworthy is that basket and how sure are that such basket will not get leakage in a shortwhile.
For me is always Bitcoin, I wouldn't decide for anyone but I won't stop telling individuals what I feel is right in this space but their individual decision surpass my advise but I can't give up on this because that's what I think is applicable here.
I am not sure if I like your framing of the diversification idea Promocodeudo. Sure you are correct that we should be building up our bitcoin holdings first, and perhaps solidifying our cashflow management and our back up funds, and so when we start to consider diversifying, we are not necessarily seeking some assets to cause our total investments to grow faster, but instead to perhaps offset some of the potential over exposure in bitcoin that might start to develop by ONLY having investments in bitcoin and in cash... and so we also might want to allow our cash portion to become larger, but we would rather have our cash portion to be working for us rather than ongoingly losing value, which can tend to be a problem when we are starting to hold too much of the value in cash, so then we might end up having 4-6 months in cash. 3 months in emergency funds, and then perhaps 1-3 additional months in various kinds of reserve funds that sometimes might be drawn upon... and so we might also want to have additional funds that we might want to draw upon besides the 4-6 months that are in cash and/or cash equivalents...
At the same time, maybe our investment into bitcoin might have gotten to 3 months at the time that our emergency funds were at 3 months, but then if our bitcoin is continuing to grow and maybe getting to 5-9 months or beyond from the mere amount that we put into bitcoin, yet bitcoin might have had also appreciated in value during the time that we were building it up, and so if we might have had been building our bitcoin holdings for 3-4 years, yet at the same time, our holdings might have gone up quite a bit in value...
So let's say that we have an income of around $30k per year, and we had been investing
$100 per week into bitcoin for about 3.5 years since late 2021 or early 2022, and so maybe we might have had invested $18.5k into bitcoin, which is ONLY a bit more than half of our annual income, yet we had accumulated right around 0.522 BTC, and so we have gotten ourself to a pretty good place since the
0.522 BTC would have a 200-WMA valuation of around $25.2k, and a BTC spot price valuation of around $55k, so surely our whole BTC holdings is doing quite well and maybe we can assume that a various back up funds have been built up to 4 months or more, and so even though we might not quite be ready to start to diversify into any other assets, we still might start to consider at various points that we might be willing to potentially diversify, even though we could potentially put diversification off for another whole cycle and reconsider the matter of where we are at after an additional 3-4 years.. .and then reassess at that time.. and in the meantime, we just continue to invest into bitcoin at around $100 per week, unless there might be meaningful changes to our income and/or even to our discretionary income.
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It's the same for people only focusing investing into gold first than people spreading their investments. For me, it's more safe to focus on something you really know and accumulate it for few years. Immediately diving into different investments just because you heard it's a good investment but you have no any other info about it is dangerous.
Having multiple investment also will divide your time. Instead of you only focus on learning more knowledge about that one particular investment, you will have information overload learning multiple type of investments.
Best strategy is focus on 1 investment first like bitcoin, accumulate it for few years while learning its pros and cons before you procede to altcoin investing. It's less-risk and less stress for a person doing that approach.
When you are focusing on bitcoin first, then sure some aspect is learning about bitcoin, yet the other aspect is learning about your own cashflow management, and perhaps even figuring out ways to potentially increase your discretionary income by increasing your income and/or decreasing your expenses.
It can take a while to hone your cashflow management skills, and sure while you are honing your cashflow management skills you can also study bitcoin to the extent that you might need to get to know it better, including potentially learning wallet and/or UTXO management, since of course any of us should want to figure out ways to make sure our bitcoin is safe, and maybe the more bitcoin that we own, then perhaps the higher percentage of it we should be holding privately rather than holding it with 3rd party custodians... which is not really owning bitcoin in an empowering way, even if we might want to keep some exchange accounts active.