While hodling can be beneficial for certain cryptocurrencies, it's crucial to maintain a diversified portfolio. Investing in a range of different assets can help spread risk and increase the potential for overall returns. It is at this juncture diversification comes into the picture.
Diversification reduces reliance on the success of a single cryptocurrency and safeguards against the possibility of investing in projects that may not perform as expected.
You have raised a valid point. Diversification is key in order to reduce the volatility risk. Stay blessed.