Do you recommend my portfolio having 2 or 3 main cryptos and 2 smaller ones ? How do you spread your investments, and what are the reasons behind ?
Thats a tough question but I'd probably recommend something like this if you're a noob:
50% bitcoin
15% ethereum
25% large and mid caps (coins you prefer in the top 100.. avoid junky pump and dump cryptos like Ripple and Bitcoin Cash)
15% microcaps (coins that you believe in with high potential to grow in market cycle, below 25 million market cap with decent volume and on credible exchange)
The main key is with anything in a bear market, it will live or die based off of bitcoin.. so the closer to bitcoin you are and the tighter the leash is on your alts, you will do better. Most noobs make two common mistakes that wreck them for months. They buy all in at one spot (but if i hold it for 2 years what does it matter?!?!!?) and don't hold bitcoin. (alts are the future tho?!?!) Consider Bitcoin your get out of jail card.. it will buffer you from mistakes and allow you to cost average down (not to mention it will keep you disciplined in buying alts.. since you have less to allocate so you better choose right)! When buying alts you have to understand the ideas of past support now becoming resistance.. and when you break major lines of support, it can be a long time before you hit the next zone of support... so really think three or four times if this is REALLY the most strategic place to buy. Consider this.. in all of trading, the ONLY thing you really have control over is when you hit that buy button. So really and I mean REALLY consider where you take alt positions.. in bear markets Id say 90% or more noobs would be better off holding bitcoin, because things can fall farther than you think, and the correction can be longer lasting than you think.
Hopefully this helps.
