I frequently suggest no more than 10 % the size of your bitcoin holdings to go into shitcoins and/or trading, yet at the same time, you have to figure out if you have some kind of a compelling reason to invest into shitcoins at a higher rate and/or whether there might be some compelling reason to deviate from such a cap, and surely the more shitcoins that attract your attention then the more your investment in bitcoin potentially get diluted, especially if you are not keeping adequate limitations on your shitcoin and/or trading involvement. and surely I had frequently mentioned to guys that even if they are investing 20% of their income into bitcoin, it is still going to take 5 years for them to get a whole year of their income invested into bitcoin, and so if they dilute their bitcoin investment it will take longer, and surely many folks have difficulties investing even 10% of their income, so that would take 10 years to get to 1 year invested in bitcoin, yet surely if you had already been investing prior to getting into bitcoin, then you surely might have some money (an investment portfolio already built up, and sometimes having an investment portfolio, then you have more to work with if you decide to reallocate some of the already accumulated value of that into bitcoin).
With an investment like bitcoin, we might be striving to get to a point where we might be able to have accumulated enough bitcoin (along with bitcoin's price appreciation) to be able to live off of the income from withdrawing from our bitcoin, which could take at least a couple of cycles to achieve such level of bitcoin accumulation and BTC price appreciation, and perhaps even longer if the investment is diluted into either shitcoins or even undermining the investment by trying to trade it or to overly attempt to time bitcoin price dips that might not end up happening.
Ultimately, what you do is entirely up to you, but from my experience, it is essential to have a clear plan to succeed in bitcoin investing. It is not enough to buy bitcoin, you need to understand where you stand and how long-term you are thinking. Many people think that taking a prominent position in bitcoin is. Straightforward, the reality is that it takes time to gradually reach that position from a regular income, sometimes 5 years, sometimes more.
On the other hand, I will say that with shitcoins, they are a lot like gambling. If you go into shitcoins, then you have to treat it as a trade. Timing is critical here; if you do not know when to enter and when to exit, the possibility of loss is more than profit. I generally advise that you should never put more than 10% of your Bitcoin holdings into shitcoins or trading. But that also depends on your risk-taking mentality.
The most important thing is that the more you engage in volatile investments (such as shitcoins or short-term trading), the further you will move away from your long-term goals in Bitcoin. Many say that Bitcoin investment is actually a game of patience where you want to get a stable income from this investment one day, but to get there, you need discipline, patience and focus.
So the bottom line is that you have to decide your own investment strategy yourself, but it should not be a hasty decision, but rather a calculated one, with a long-term plan in mind. Because the only way to survive in the crypto world is to play smart, not to win, but to survive.