Diversification equals only risk reduction if you can't figure out the outcome of a specific investment to a satisfactory degree/level of conviction. To choose the best investment, compared to all investments available is always better if your highly ceartin about the outcome, but it has to be obvious.

Paradoxically, when 'dumb' money acknowledges its limitations, it ceases to be dumb. Means I don't think my skills are that high in crypto. So diversification is probably the way to go. If, if there is value in crypto at all at the end of the day