Diversification strategy crypto

With only three thousand to invest, should I be diversifying across many cryptocurrencies or focusing deeply on one or two? I'm worried about spreading too thin.

Cytat:

With only three thousand to invest, should I be diversifying across many cryptocurrencies or focusing deeply on one or two? I'm worried about spreading too thin.

Concentration risk and diversification risk are both real. Sweet spot for beginners is usually three to five quality cryptocurrencies. Bitcoin as foundation, one major altcoin like Ethereum, then two smaller positions in projects you actually understand. This avoids both over-concentration and analysis paralysis from tracking thirty coins.

Started with fifteen different coins trying to catch every trend, ended up with mediocre results because I couldn't track any properly. Switched to four core positions and my returns improved dramatically. The reduced complexity meant I actually understood what I owned and could make informed decisions rather than reactive ones. Found excellent diversification frameworks here: https://ekripta.com/en/3k-investment/