Why crypto sizing needs larger risk adjustments.
| Concept | Explanation | |---|---| | Stocks | Ownership claims supported by company disclosures and regulated market structure. | | Crypto | Higher technology, custody, supply, and regulatory uncertainty. | | Volatility | Crypto position sizes often require larger risk adjustments. | | Trading hours | Crypto trades continuously, creating overnight and weekend exposure. | | Custody | Self-custody and exchange concentration add operational risk. | | Correlation | Crypto assets may become highly correlated during stress. |