Diversification in investment portfolios is crucial for improving risk-adjusted returns.

During bull markets, investors may question the need for diversification, using the example of 'Why not 100% equities?'

The principle of diversification applies to the crypto space, where Bitcoin's dominance in media can skew investor perception.

Empirical analysis from 2018 indicates that diversified crypto portfolios perform better on a risk-adjusted basis than single-asset portfolios.

A combination of Bitcoin and Ethereum, and further diversification with a broader range of digital assets, leads to enhanced portfolio performance.

Evidence supports that a diversified portfolio of assets in the crypto space yields better long-term risk-adjusted returns than owning a single asset.