Agreedd!!
I experiencing myself, diversing my asset will make my return really small.
However, yeah the risk is lower, not exactly the risk. But, i think it like less feeling scare if something happen with the platform. Since on Crypto especially many platform going big and suddenly bankrupt. And if that happened on one of my place investing, it would be disaster if i am going all in.
But no hard feeling i am team diversification
!ALIVE
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There are two different types of risks
Systemic and nonsystemic.
There is no protection against systemic risk. If a meteorite hits planet earth diversification won’t protect you. That’s systemic. However, we don’t have to go that far fetched. A recession is also systemic, diversification won’t protect you there. It used to, but not anymore in the highly connected world.
On the other hand diversification might protect you somewhat against say collapse of Luna or Thorchain. As most of crypto is scam anyways. That's nonsystemic.
hmmm...thats new lesson for me.
I guess i just can manage the nonsystemic risk here.