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.
How do you intend to diversify your investment when you have not even gotten to the middle of your accumulating journey? diversifying your investment when you have not yet acquired a reasonable amount don't make much sense to me. As a no coiner what you need to do is to keep accumulating bitcoin since is your first choice of investment then after which you have gotten to the status of overaccumulation then you can start looking into diversifying into other assets, because bitcoin investment need to be giving much attention than any other crypto investment since bitcoin is the only crypto currency we are sure of it good potential in the future, aside from bitcoin investment I don't think if there's any other crypto currency that one can think of diversifying into.
Permit me to say as a newbie, diversifying too early might not be effective when, as a newbie, the primary goal is to build as much of a long Bitcoin portfolio little by little, plus having a belief that Bitcoin really has a strong future potential which warrants focused investment, and once a substantial Bitcoin portfolio is really established, diversification into other assets can be considered.
Either too early or not, as a newbie you are not suppose to diversify your investment because you are still in your building up stage, the only time you can diversify is when you have reached your over accumulation stage, then from the over accumulation you diversify not all your investment but part of it and then continue to be accumulating, because it will be wrong to see all your investment after you have reached your over accumulation stage that took you about over three to four cycle to invest in the bit to diversify, make your starting your investment from zero level again, it will be very unhealthy for that investor, because it shows that the investor does not really understand what investment for long-term is all about.
if you are even realistic enough, you will know that it is not easy to get to your comfort zone in your bitcoin investment and so, diversification isn't even necessary to come to your mind to start with. the mere thought of diversification is an indicator that you do not believe in the potential of bitcoin. if it is true that you believe in the potential of bitcoin, then, you should be more concerned about building your bitcoin stack than allowing the thought of diversification become a source of distraction to you to the point of taking out the asset you have even tried to accumulate into an another source that you are not even sure of it potential.
even after you have reached your investment goal, relative to you, it might look like you have achieved something big and hence the need to diversify but when you look at others to know that what you are calling your goal might just be someone else starting point, it sure should tell that there is more we can accumulate as investors above whatever short term goal we have probably set for ourselves. with more gross bitcoin holding in your wallet gives a certainty that you are placed at a better profit region when bitcoin goes up higher the moon, diversification stands to prevent that from happening as it eats into the asset you have already accumulated.