Really great write up @cryptographic :) A balanced as well as diversified Portfolio is definitely important and quite easy to be done by everyone. But just like you mention as well in the end it´s the emotions that might make you take exactly those actions that you shouldn´t...
Controlling your emotions on such a volatile market is especially tricky as you never know how high or low it´ll go, so that FOMO & FUD might mislead you into selling low and buying high instead.
I would therefore always recommend to keep a certain percentage of your Portolio invested in the long term and just use a portion of it for short term gambles. That way you minimize your risks while still having a chance on high profits :)