The Underlying Logic of Global Asset Allocation: Why You Must Hold Both Cryptocurrency and US Stock Accounts

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In global asset allocation, you must hold both cryptocurrency and US stock accounts at the same time. This approach allows you to gain stronger resilience and return opportunities when facing economic uncertainty, inflation, and market volatility.

• In 2024, institutional investors showed significantly increased interest in Bitcoin, and the integration of cryptocurrency with traditional finance accelerated.
• The US stock market experiences relatively large fluctuations, but cryptocurrency recovers faster, providing resilience to your investment portfolio.
• Bitcoin, as a macro asset, performs prominently under economic uncertainty and inflationary pressure, helping you better achieve global asset allocation goals.

Core Key Points

• Holding both US stock and cryptocurrency accounts simultaneously can effectively diversify risk and enhance the stability and return potential of your investment portfolio.
• By diversifying across different asset classes, you can better manage risk and ensure long-term stable returns.
• Cryptocurrency, especially Bitcoin, is gradually becoming an important tool against inflation, helping to protect purchasing power.
• The US stock market offers transparency and liquidity, suitable for investors to access high-quality assets and innovation opportunities.
• Dynamically adjusting asset allocation ratios while monitoring market changes enables the best risk-return balance in complex environments.

Goals and Principles of Global Asset Allocation

The Essence of Risk Diversification

When conducting global asset allocation, your primary goal is to diversify risk. By allocating funds to different types of assets, you can effectively reduce the impact of volatility in any single market on your overall wealth. Experts suggest that the core principles for balancing risk and return include:

• Balancing risk and return through diversification
• Ensuring equal contribution from each asset in terms of return and risk
• Identifying complementary assets and combining them effectively to maximize diversification
• Balancing the contribution of return and risk as much as possible under constraints

Empirical studies show that portfolios maximizing diversification usually have lower risk than those solely pursuing minimum risk in out-of-sample frameworks. The table below demonstrates the specific role of diversification in risk management:

Importance of Diversified Allocation

Diversified allocation is key to achieving long-term stable returns. By allocating across different asset classes, you can obtain better risk management and wealth preservation capabilities. Diversification not only helps you maintain investments during market shocks but also improves the overall return experience. Five-year rolling return and volatility analysis shows that diversified portfolios deliver more consistent returns, helping you stick with investments long-term and support compound growth.

In the current global economic environment, the correlation between traditional stocks and bonds has changed, leading to increased risk. You need to rethink asset allocation and adopt new diversification strategies. Data shows that in 2025, returns from international developed and emerging market asset classes were nearly twice those of the S&P 500 Index, with lower volatility in diversified portfolios, further proving the effectiveness of risk diversification.

Global asset allocation requires you to focus on performance differences across regions, sectors, and asset classes to capture unique investment opportunities. Only in this way can you achieve a balance of risk and return in complex and volatile market environments, enhancing the overall resilience of your wealth.

At the execution level, holding two accounts is not only about opening them separately. What matters more is creating a workable loop between research, allocation changes, and fund movement. You can first use stock information lookup to track US equities, then use a trading portal for digital-asset allocation, so research and execution stay within one decision framework.

This kind of setup is more practical for users who move across markets. BiyaPay works as a multi-asset wallet covering cross-border payments, investing, trading, and fund management scenarios, and it holds relevant compliance registrations in jurisdictions including the United States and New Zealand. In a global allocation context, it is better understood as an execution and fund-connectivity tool, not a substitute for your own investment judgment.

Advantages of US Stock Accounts

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Transparency and Liquidity

When choosing a US stock account, you can obtain high market transparency and strong investor protection. The US securities market has a well-established regulatory system that safeguards investor rights. The table below shows the main regulatory frameworks and their roles:

The liquidity of the US stock market ranks among the best globally. You can complete trades with narrow bid-ask spreads most of the time, with high capital inflow and outflow efficiency. However, during periods of market stress, US stock liquidity may decline rapidly, bid-ask spreads widen, and liquidity fragility increases. Compared to other asset classes such as government bonds and foreign exchange, US stock liquidity is more susceptible to extreme events.

• Liquidity in US stocks has improved on average, but shows fragility during periods of market stress.
• Although average bid-ask spreads have decreased, the skewness and kurtosis of spreads have increased, indicating that liquidity may disappear rapidly during stress events.
• Compared to other asset classes such as government bonds and foreign exchange, US stocks are more fragile in terms of liquidity.

Access to Global High-Quality Assets

Through a US stock account, you can directly invest in the world’s leading companies and innovative firms. The US market gathers leading enterprises in technology, healthcare, consumer sectors, and more, with strong profitability and global competitiveness. The openness and inclusiveness of the US stock market provide you with abundant asset choices, helping you obtain broader investment opportunities in global asset allocation. You can flexibly allocate high-quality assets across different industries and market caps based on your risk preferences and investment goals, enhancing the stability and growth potential of your portfolio.

Tokenization Trend

The US stock market is undergoing tokenization and digital transformation. You will find that the connection between US stock performance and cryptocurrency volatility is becoming increasingly close, and this trend is influencing global asset allocation strategies. Investors need to adapt to the dual challenges of related risk sentiment and adopt more flexible and diversified asset allocation frameworks. US Bitcoin exchange-traded products (ETPs) have attracted capital inflows from Asia, Europe, and Latin America. Bitcoin is gradually becoming a global currency alternative and a unique diversification tool in portfolios, especially performing prominently during periods of inflation or geopolitical instability. When formulating global asset allocation plans, you should focus on the synergistic effects between US stocks and crypto assets to enhance overall risk management capabilities.

Value of Cryptocurrency

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Decentralization and Innovation

When allocating assets, you will find that the decentralized nature of cryptocurrency provides a solid foundation for investment security and innovation. Blockchain technology makes all transaction records publicly transparent, eliminating reliance on central authorities. Through decentralized ledgers, you can obtain tamper-proof historical data, reducing the risks of human manipulation and single points of failure.

The table below compares the differences between cryptocurrency and traditional financial systems in terms of security and transparency:

You can conveniently access mainstream cryptocurrencies and innovative blockchain projects through compliant platforms such as BiyaPay, participate in global asset allocation, and enhance the diversity and resilience of your investment portfolio.

Cryptocurrency also offers the following value:

• Diversifying risk across different assets
• Investing in new blockchain projects and technologies
• Hedging against major coin declines
• Building sustainable long-term investment strategies

Inflation Hedge

In intuitive investment practice, you will find that cryptocurrency, especially Bitcoin, is gradually becoming an important tool against inflation. Research shows that Bitcoin has a correlation of up to 31% with changes in expected inflation, almost on par with US stocks. In high-inflation environments, Bitcoin’s potential excess returns relative to stocks provide you with a new option to protect purchasing power.

The table below shows Bitcoin’s correlation with inflation data:

You can flexibly allocate mainstream crypto assets such as Bitcoin through platforms like BiyaPay, enhancing your portfolio’s risk resistance during high-inflation periods. This strategy has been adopted by an increasing number of Chinese-speaking users and has become an important component of global asset allocation.

Driven by Blockchain Technology

When focusing on asset allocation innovation, the driving force of blockchain technology cannot be ignored. Tokenized securities, programmable money, and blockchain-based settlement systems are reshaping the issuance, trading, and custody of assets. Crypto assets such as Bitcoin serve not only as stores of value but also as the core of innovative financial infrastructure.

The table below summarizes the impact of blockchain technology on asset allocation:

You can conveniently participate in tokenized asset investments through compliant platforms such as BiyaPay, enjoying the efficiency and transparency brought by blockchain. Blockchain technology is pushing global asset allocation into a completely new stage, bringing you more diverse and innovative investment opportunities.

Risk vs. Return Comparison

Risk Differences Between US Stocks and Cryptocurrency

When conducting global asset allocation, you must clearly understand that the risk structures of US stocks and cryptocurrency have essential differences. The US stock market is protected by a regulatory system, with relatively controllable volatility. The cryptocurrency market is known for its extreme volatility in specific situations and is more influenced by market sentiment and policy.

The table below compares changes in correlation between cryptocurrency and US stocks:

You can see that although the correlation between cryptocurrency and US stocks has increased, it remains lower compared to traditional assets, providing room for risk diversification.

You also need to pay attention to the impact of different cryptocurrencies on US stocks:

• A 1% increase in BTC and ETH leads to a 0.08-0.10% decline in the S&P500 index (statistically significant).
• XRP’s return has a negative coefficient of 0.09% on the S&P500 (statistically significant).
• Returns of BNB and USDT have no significant impact on the S&P500.

These data indicate that the linkage between cryptocurrency and US stocks is strengthening, but independence still exists. You can use this characteristic to optimize your asset allocation structure.

Return Volatility and Correlation

When allocating assets, you must consider the volatility of different assets. The average daily volatility of cryptocurrency far exceeds that of US stocks and traditional currencies. For example:

• Bitcoin’s average daily volatility is 2.87%, Ethereum 3.76%, Ripple 4.04%, Dogecoin 4.55%.
• Traditional currencies such as the euro, pound, and yen have average daily volatilities of 0.34%, 0.43%, and 0.35% respectively.

You can see that cryptocurrency price fluctuations far exceed those of US stocks and major currencies, meaning that while pursuing high returns, you must also bear greater risk.

Correlation analysis shows:

Based on this, you can determine that the overall correlation between US stocks and mainstream cryptocurrencies is relatively low, especially in extreme market environments where their return fluctuations are not synchronized. This provides a theoretical foundation for risk hedging and return enhancement in global asset allocation.

Portfolio Optimization Effects

In actual investing, the effects of portfolio optimization are particularly critical. Research shows that including cryptocurrency in traditional US stock portfolios usually achieves a better risk-return ratio. You can refer to the following conclusions:

• The introduction of cryptocurrency brings high average returns and low correlation to the portfolio, helping to diversify overall risk.
• Increasing the proportion of cryptocurrency in the portfolio can, to some extent, reduce overall volatility and improve the Sharpe ratio.
• However, you must note that the high volatility of cryptocurrency may also amplify short-term portfolio risk, requiring a trade-off based on your own risk tolerance.

You can conveniently set up dual accounts for US stocks and cryptocurrency through compliant platforms such as BiyaPay, flexibly adjust asset proportions, and meet personalized global asset allocation needs.

The table below shows the optimization effects of different asset combinations:

You can see that the lower the correlation between assets, the more obvious the portfolio optimization effect. Real cases show that during the pandemic, portfolios holding both US stocks and cryptocurrency achieved returns higher than benchmark portfolios in over 60% of cases, with lower volatility. Through scientific allocation, you can enhance the resilience and return potential of your overall investment portfolio.

Tip: When conducting global asset allocation, you should continuously monitor changes in asset correlations and dynamically adjust allocation ratios to achieve the best balance of risk and return in complex market environments.

By holding both US stock and cryptocurrency accounts simultaneously, you can significantly improve the risk-adjusted returns of global asset allocation.

• Research shows that including up to 6% cryptocurrency in traditional portfolios significantly improves the Sharpe ratio with limited drawdown risk.
• You should choose compliant platforms, pay attention to tax compliance, and reasonably allocate asset proportions.
• The table below shows risk-adjusted returns under different allocations:

You should combine your own risk tolerance and goals, dynamically adjust allocations, and achieve better global asset allocation results.

FAQ

Why does global asset allocation require holding both US stock and cryptocurrency accounts?

You can diversify risk and improve return stability through dual accounts. US stocks provide high-quality assets and liquidity, while cryptocurrency offers innovation and inflation-hedging capabilities; the two complement each other.

How can mainland China investors legally and compliantly open US stock and cryptocurrency accounts?

You can choose compliant international brokers and cryptocurrency platforms, complete identity verification and tax declarations in accordance with relevant regulations. It is recommended to prioritize platforms with good reputation and regulatory qualifications.

How should the cryptocurrency allocation proportion be determined?

You need to set the proportion based on your own risk tolerance and investment goals. It is generally recommended not to exceed 5%-10% of total assets to balance high volatility and potential returns.

How to achieve coordinated asset management between US stock and cryptocurrency accounts?

You can use professional asset allocation tools or platforms to dynamically adjust the proportions of US stocks and cryptocurrency, regularly rebalance, and ensure optimal risk and return for the overall portfolio.

What are the main risks to pay attention to in global asset allocation?

You need to pay attention to policy changes, market volatility, liquidity risk, and platform security. It is recommended to regularly evaluate the investment portfolio, adjust strategies promptly, and safeguard asset safety and return stability.