It is not a bad idea only if they can pick the right coin. But people end up investing in a coin that pumped most recently and they think that the coin will pump further. Unfortunately, that is the mistake beginners make. Some of my locals bought Mavia that already pumped a lot and they thought it would pump further.
But due to the recent price correction, the market is crashing and those unnamed altcoins also crashing. Most of the unnamed altcoins lose more than 30% in the last couple of days. Even a coin like AVAX lose 30% in the last few days.
Mavia is not a good investment and not good for holding they thought it would become similar to Axie but they didn't realize that Axie just became hype due to the pandemic because we know most of people before did not have any job during covid.
Right now is different Mavia is a good token to hold it is a game it is a dead end for me if I invest to any blockchain game tokens that's a pretty bad idea.
About the price drop not only altcoins and tokens are drop but also Bitcoin is drop they are affected when the BTC price drop. If you are a trader I'm sure you are going to use Bitcoin as your indicator because when the price of Bitcoin spikes other coins/tokens too will spike.
Finding good coins is time-consuming even a good altcoin like Beam and Grin is now dying so that is why you need to diversify because you will never know the future of any project if these are going to die or be profitable in the future.