Buying and holding is too conservative of a strategy in my opinion. You can do daytrading or swing trading to increase profits more if you do it with currency trend science.
I pick cryptos based on monthly trade volume and which are actively discussed intelligently instead of some cool factor, and which generally have been trending upward when you look at them for the past year to now. I recommend picking like 5 to 8 of these as your diversification. And ignore if the coin name sounds stupid -- it’s all about the numbers.
I think it’s good to hold 20% to 30% of your holdings in BTC as a hedge just in case. BTC is too conservative in my opinion.
On eventual cash out profits once a year, I recommend first moving to BTC those profits, buying as much stuff and gift and fuel cards as you can with it, and then cashing the remainder of those profits into your fiat currency like USD, although you’ll pay tax on that in most countries.
I disagree with the opinion of bank collapses. Sure, it worked for some small countries when the banks collapsed and people were able to move to BTC to save themselves. But if the USD collapses, the whole world collapses and that includes Internet providers and these exchanges. You can kiss your cryptos goodbye if that happens.