Gate News message: On April 7, U.S. financial giant Charles Schwab released a research alert stating that even if only 1%-3% of funds are allocated to Bitcoin or Ethereum in an investment portfolio, it may significantly change the portfolio’s overall risk profile. The report notes that both Bitcoin and Ethereum have historically experienced drawdowns of more than 70%, far higher than the volatility levels of stocks or bonds; therefore, even small allocations can have a noticeable impact during periods of market volatility. Charles Schwab proposed two approaches to allocating crypto assets: first, the traditional portfolio theory method, which allocates based on expected returns, volatility, and correlation; second, a risk-first approach, which determines the share of crypto assets based on the amount of risk one is willing to take, shifting the focus from returns to risk tolerance.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
