To actually create your wealth through just Crypto you have to “put all your eggs in one basked and then watch“. That is actual investment.

One thing you could hear here a hundred times during the bear market and even the previous bull market was the advise of diversification. Diversification in the sense of that you have to invest in multiple cryptos, that preferably also are from different sector of crypto, to be a successful investor with the least risk.

While this is a very good investment advise actually and fits a lot of humans as we humans are usually very risk-averse, meaning that we would be ready to pay quite a lot to not lose anything while we would not pay as much to win something. This is according to the principle of diminishing marginal utility, which says that the next dollar for us worth less than the previous dollar. But enough of this economics lecture.

The real reason for many of us to be here is that we want to become rich, as silly as this may sound. We all want to make a ton of money with Crypto. Now if we look at all the legendary investors through the history of humanity, they would agree that the key to becoming really rich off some investments is definitely NOT diversification.

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Quote by Andrew Carnegie (1835-1919)

Andrew Carnegie is one of the less known legendary investors, but he mostly plays in the same league as Buffett, Munger and Soros. About one hundred years ago he really became wealthy with his bet on the steel industry. While he did also support the idea of diversification a lot, one thing was clear that is not how you CREATE wealth, diversification is for PROTECTING wealth.

Now also here in Crypto most people got really rich because they had made one investment that completely blew up, finding two of them is already very difficult. If you found one crypto that you made all the due diligence on and you really think it can blow up and you want to create your wealth with it, it would be the smartest to double down on it and not diversify with others.

(This is no financial advice, especially as this strategy in a young market as Crypto is a lot more difficult and risky to apply)