A couple of comments here have already hit on it - the real important point is asset classes. Diversifying by splitting money between ten different cryptos is not really diversifying. If crypto went bust, you'd lose everything. Splitting between crypto, real estate, precious metals, equities etc is real diversification. But we each have to choose our risk tolerance level and how we want to allocate between classes.

Great topic to discuss here, because I think that this is something fundamental to people being attracted to crypto. It involves the idea of financial literacy. Most people do not learn in school how to handle money and invest, but many people seem to be really gaining an interest in it and learning about the process through crypto.