Indeed, diversification is one of the important factors in trading or investment. We can map out which coins are worth it and have the potential for long-term trading, which is much safer, such as Bitcoin of course and some top coins. However, there are also altcoins that are suitable for short-term, and also some new coins that are indeed very potential for trading, it's just that this is riskier. But the point is, we can optimize the chances at every opportunity that exists, as long as we have the knowledge and can apply it, then we can choose and sort out which coins have the potential to be that good for diversification.
The aspect of trading and investment is mainly based on diversification which alongside helps in selecting proper coins for the specified goals whether long term with top performing coins such as BTC or short term with possibly although unlikely inferior altcoins. Only a single category of its coins offered a favorable environment for us to capitalize on its growth.
Enough knowledge allows to determine which coins are promising. Appropriate application of knowledge becomes more efficient when we already have enough of it to diversify the opportunities in order to optimise the results.
It simply means we can select popular coins that we need for long-term keeping, like BTC, or less-known coins with potential to grow and that can be useful for short-term investments. Such insights help us estimate the profitable coin categories and, therefore, have a greater probability of maximum growth.
If people are well informed, they can easily look into the areas with high returns and control risks prone to happen. Appropriate use of this knowledge entails the realization of improved and meSPAM BANble efficiency in every step of investment.