Layered Risks in Cryptocurrency Investment: The Dangers and Opportunities of Personalized Strategies

According to the latest analysis by Schwab, the cryptocurrency market is not a simple asset but functions as a complex ecosystem composed of multiple layers. As personalized investment strategies become more prevalent, understanding this structure is essential. NS3.AI’s research clarifies where market value is concentrated across these layers, highlighting the associated risks and opportunities.

The Value Structure Revealed by the Schwab Report

Schwab’s analysis classifies cryptocurrencies into three levels: network layer, infrastructure layer, and product layer. A key finding of this classification is that the majority of the overall market value is concentrated in the underlying network layer.

This indicates that blockchain networks themselves possess the most powerful value capture mechanisms, significantly influencing investment decisions. While many investors tend to be attracted to tokens in the infrastructure and product layers, it has been revealed that the fundamental source of value resides in the network layer.

Risks and Options in Individual Investment Strategies

This insight has serious implications for building investment portfolios. When devising personalized investment strategies, it is essential to accurately understand the risk and return characteristics of each layer. It is necessary to consider both the risks of concentrated investment in the network layer and the opportunities presented by diversification strategies.

Focusing on core blockchain networks is key to long-term value preservation in the cryptocurrency market, but it is important to adjust this approach according to individual investment goals by balancing market volatility and the growth potential of emerging projects.