Deep Tide TechFlow News, April 7th, according to CoinDesk, financial giant Charles Schwab has released a research report warning that even allocating just 1%–3% of a portfolio to Bitcoin or Ethereum can significantly alter the overall risk profile of the investment portfolio, as both Bitcoin and Ethereum have historically experienced declines of over 70%, far exceeding the volatility levels of stocks or bonds. Therefore, small allocations can have a noticeable impact during market fluctuations.

Charles Schwab proposes two methods for crypto asset allocation: one is the traditional portfolio theory approach, allocating based on expected returns, volatility, and correlation; the other is a risk-based approach, determining the crypto asset proportion according to the risk tolerance, shifting focus from returns to risk capacity.