Yes, diversification does not mean that the investor has to invest in Bitcoin along with other cryptocurrencies or gambling tokens. Diversification is done to reduce the risk. Not putting all the eggs in one basket, but in different baskets. But when he keeps his assets in shitcoin, his attention to Bitcoin will be lost. After holding shitcoins for a long time, when he loses that money, his greed will also affect his Bitcoin investment later. This will destroy his long-term dream of investing in Bitcoin. For diversification one can also keep his assets in real estate or any other platform, but when he keeps them in shitcons, he can be cheated at any time.
Yeah, diversifying our investment is good, but since we are still early in Bitcoin investment, it is good for us to remain focused on our Bitcoin investment and forget about diversifying our investment for now so that we will not get distracted. It would even be better if we used the money for diversification to front-load our Bitcoin investment so that we can increase the size of our Bitcoin holding. Maybe when we have accumulated the quantity of Bitcoin we want, we can then think about diversifying our investment or, better still, start accumulating Bitcoin again.
I do not think diversification is really a bad idea as long as you are not considering diversifying into shitcoins. You can save alongside your accumulation of bitcoin to diversify into another profitable venture like maybe real estate or agriculture, it helps create a more sense of security and balance on your investments as a whole. What tends to distract us is when we shift our gaze from investing to gambling, and in this case it might be shitcoins involvement or even trading without relevant skills(better off if you can avoid it totally).
I would still propose not diversifying when you have not come to some maturity in your cashflow management and is able to maintain consistency in your accumulation journey for a while. If an investor is able to maintain consistency in his accumulation journey for a year or two or even a whole cycle, such a person can think of diversifying into other profitable portfolios without harming his ongoing accumulation of bitcoin.
When we talk about diversifying into another investment, note that what you will be using to diversify is your discretionary income so meaning if you where using 70 percent of your discretionary income to accumulate Bitcoin because of the choice of diversifying you will now be investing only 40 or 50 percent of your discretionary income to accumulate Bitcoin and the rest to the other investment depending on the kind of investment, now before you choose to diversify make sure you have a very strong backup funds because the other investment you are going to may have ups and down that may make you spend money you where not expecting to spend so in this case all you have to do is dip hands into your backup funds and settle it.
And again just like Sticky Bomb don't diversify into shitcoins because the risk of lost is very high.
Lastly I will advise that if you are still building your Bitcoin investment you have no reason to diversify especially as a newbie into Bitcoin investment so as not to get your self confused, focus on your Bitcoin investment and build it till overaccumulation stage before chosing to diversify.