Something that many fail to understand and that I have mentioned before but will repeat again is:

When you invest in the low-cap market it's completely normal that 8 out of 10 of your investments go bust.

EVEN when they tick all the right boxes.

- Proof of product

- Good team

- Strong narrative

- Good social activity / community

- Healthy looking chart

- ...

You literally do it to catch those 2 out of 10 winners in there. Because they will make it all worth your while.

Because of this you NEED to be diversified. You just can't go all into 2-3 plays (especially not if they are lowcaps) and use the argument:

"Yeah but I did my research. I'm 100% certain of this one"

You are raising the odds to succeed here yes but you are still investing in a high risk class asset which are low caps.

You are doing it to catch the next Google, openAI, Amazon, Apple,

... of crypto.

And those will take many failed attempts along the way even when they initially showed promise that they could have been it.

You can play it more safe and stick to large caps only but it'll come at the cost of lower upside.

Just know you need to stick to the rules of risk management with whatever game you yourself chose to play at.