Well said, It is a very wrong mindset for some one that have a a portfolio in bitcoin and is dealing with shitcoin to think that they are diversifying.such a thing is not diversification, I believe this set of people doesn't really know what diversification is and the purpose or the reason behind diversification of funds The main reason why most investors diversify their funds is to reduce risk, just like the saying goes it is not good to have all egg in one basket, so diversify one portfolio in bitcoin to shitcoin which is more riskier than bitcoin is not diversification since the investor will be exposing there funds to more risk.
Investing on Shitcoins is a choice, especially for someone that's built a good bitcoin portfolio for years, let's say about a decade, such person should have a good stash in the portfolio and since there's no harm if they sell some portions, they can choose to use it for other areas of investment or financial opportunities, left for me I won't put it into shitcoins since there's other investment opportunities like gold and real estate.
However if someone has choose to risk their money on shitcoins its their own issues to deal with, due to the risk factor I won't advise anyone on that especially someone that's yet to fully grow their portfolio to a certain level, it would serve as a distraction to such person. When building a portfolio distractions like that are what investors should avoid due to the risk factor.
Knowledge is power and investor that plans to diversify their investment into shitcoins clearly don't have a knowledge about cryptocurrency. Buying shitcoins is gambling your funds nothing more but unfortunately many newbie investors don't know this, they want quick ROI in the end they get scammed. Bitcoin is not a get rich quick scheme and it cannot scam anybody, it's historical pattern has proven that in every bull circles it will continue to hit ATH and give every holders ROI. Rather than diversifying into shitcoins use all your crypto investment funds to buy Bitcoin and have peace of mind.