Yep. Diversification is good as long as we know to choose good coins. I usually only diversify my assets into few top coins. It is also easy to analyze top coins because we have enough data about them. Even for some coins such as Bitcoin and Ethereum, we even don't need to do a research. I only suggest that we don't diversify into random coins because it just lower the chance of potential profits. 
DWYOR
The primary goal of diversifying a cryptocurrency portfolio is to minimize risk by allocating most of the capital to assets that have genuine value in the market such as BTC and ETH. However, many investors misunderstand this and see portfolio diversification as taking advantage of every market trend to generate large profits through the snowball effect - using profits from one trend to reinvest in the next.
The cryptocurrency market has forced many financially naive individuals to learn about how the economy works, think more about inflation, and start considering diversifying their assets beyond just real estate, stocks, and bank savings. Crypto has truly had a massive impact on all of us, prompting us to seek knowledge to gain profits from the market ^^