The widespread adoption of cryptocurrencies has universalized the access of society to trading opportunities in alternative markets, thereby laying a rich source of data for researchers. This has led to a surge in studies focusing on the diversification and risk associated with these investments. The aim of this research activity is to investigate the relationship between diversification and risk in cryptocurrency markets, with a focus on identifying the key factors that contribute to the risk profile of these investments. By analyzing the historical data of various cryptocurrencies, this study aims to provide insights into the optimal diversification strategies that can be employed to minimize risk and maximize returns. The findings of this research will have significant implications for investors, policymakers, and regulators, and will contribute to the development of more effective risk management strategies in the cryptocurrency market.