Many people get caught in a vicious cycle when trading or investing in cryptocurrencies: they see others making money and become envious, wanting to concentrate their holdings in a single coin to chase big gains. But the result often ends up in repeated losses. In fact, this reflects a battle between two different investment logics.

**The path of diversified holdings**—how to take it? Hold multiple coins at the same time, for example, major cryptocurrencies as the main portion, and allocate some to medium-risk projects. The obvious benefit of this approach is that overall returns tend to align with the market average, and the chances of huge ups and downs are minimized. The downside is also clear: it’s hard to significantly outperform the market. You might earn 30%, while the market rises by 80%, leaving you feeling frustrated.

**The path of concentrated holdings**—what about that? Focus only on 2-3 coins, or even just 1, and put most of your funds into them. If you pick correctly, your returns can double or even more. But what’s the prerequisite? You need to truly grasp "key information others don’t have"—such as technical progress of projects, team movements, market timing, and other hard facts. Without this solid information, concentrated investing is just gambling, with extremely poor odds.

To put it simply, the choice between the two depends on you. If you don’t have access to exclusive information, it’s better to learn from experience and diversify your portfolio rather than lose money. The market’s profits are always there; don’t rush.