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The point that @JayJuanGee Sir has emphasized is that if you increase your asset reserve to buy dips then it is right. He has agreed to keep a separate fund along with regular Bitcoin accumulation so that we do not miss the dips event in the future. The amount of that fund will be determined by you and based on your income. We should only set a target for Bitcoin. Some may follow a risky approach and try to diversify the portfolio which is a risky way and has the possibility of losing money.
I am recognizing that some guys might make a separate account for buying dips, and I am not necessarily proclaiming that having such separate account is a better thing to do, even though it might make sense for some guys if they do not overdo it, such as if they were to hold back 10% to 20% of whatever they are buying in bitcoin regularly for buying dips, that might be o.k., but the dip might not come, so there are trade offs when guys purposefully choose to hold back money for dips that might not end up happening.
I know of some Bitcoin investors who are so careful about Bitcoin accumulation that they reserve another fund along with emergency fund/floating cash so that they can buy aggressively during dips period and this is to increase the financial capacity of an investor and manage the funds wisely which can make him a wealthy investor in the long run.
It is not necessarily a good practice to hold a lot of value back for dips that might not happen.. even if some guys have done it and have had some success with those buying on dip funds. There are trade offs, and if the guy is new to bitcoin or he does not have a lot of discretionary income, then it may well not be a good idea for him to be holding back very much for buying dips that might not happen, instead of staying focused on ongoing, persistent, consistent, regular and even potentially aggressive buying of bitcoin and the building up of his emergency funds and other aspects of his cashflow management system/practices so that he can figure out an appropriate level of aggressiveness balance in regards to his regular buys, especially when guys have so little discretionary income that they might not even be able to afford the buying of $100 in bitcoin per week, and then they are going to want to divide that in to funds that they set aside for buying on dips that might not happen,... makes little sense for the low discretionary income folks and the guys who are in their first year or two of accumulating bitcoin to be engaging in such practices of holding money back to buy on dips that might not happen.
The concepts of assets diversification is quite self explanatory though a lot of people understand it differently but just as it implies it entails roll out your investment around difference and unrelated asset classes, revolving around Bitcoin is never diversification, revolving around Bitcoin and other coins is not diversification either but when you are revolving around Bitcoin and others such as real estate, stocks, or selling of commodities it can be considered as diversification because they entirely not related.
I disagree with you, diversifying into crypto after investing in Bitcoin is still diversification but the thing is, it is not advisable to diversify into crypto again when one have already invest in Bitcoin and In the crypto space the only reliable coin is Bitcoin so Investing in any other coin is a more like a waste of time because they are not reliable and can easily mess someone up. Real estate and Land is a very good investment because they are asset that bring value, not just value but great value after a while and there is no too much factor or barrier.
Stormisover is correct. When you are investing into bitcoin and start putting part of that money on shitcoins is not diversification. Diversification is done for by spreading your funds into various assets of different classes and not of the of the same class. The reason is because it's for security and reduces the risk of only investing in one asset.
If you invest in bitcoin and shitcoins, when bitcoin dips, all your shitcoins goes down with bitcoin increasing your risk. But if you invest in bitcoin and stock, if bitcoin price dips, stock might not dip or rather the price goe up. Diversification is to balance and manage risk.
You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.
If you diversify investing across asset classes, you are not necessarily gaining income from those investments until maybe later in your investment journey, so in your early years of investing you may well be building, and perhaps you start with only bitcoin and cash, and then perhaps after several years of investing and building up your bitcoin stash and solidifying your cashflow management including your various back up funds, then you might thereafter add some other investment category, such as stocks, bonds, real estate, commodities or cash equivalents... and maybe sometimes you might even get involved in business ownership as a form of diversification... Shitcoins are not considered to be diversified since they are largely correlated with bitcoin, even though there are several shitcoins that are maturing in their field which might have some potential that some of them might not be correlated with bitcoin, so it seems it is not necessary to get involved in shitcoins, yet some people might choose to do so, and hopefully they are able to limit their involvement in shitcoins to less than 10% of the size of their bitcoin investment, yet surely some people like to gamble, so they have to figure out their own ways of balancing out how they might diversify out of bitcoin and if it is even potentially helpful to their finances and/or psychology.