Diversifying your assets is very important for some reasons such as;
To make investors invest in other crypto currencies and to have other streams of income other than your Main source as a way of having other funds as side hustle and back up plans.
But in a situation where you don't have enough funds then there's no point struggling to have other assets and at the end split the availability fund and end up not achieving something tangible.
if you do not have an abundance of funds to invest to different kinds of assets then just pick one that is solid and can offer you good profit and at the same time not too risky since this is your only investment
and when we say diversifying assets we just don’t mean among cryptocurrencies but you can also go for assets like real estate or gold