Short answer
Crypto custody is the core operational risk. Investors must understand who controls keys, what happens if a platform fails and how records are kept.
In this guide
What it means
Digital assets create custody decisions that traditional securities often hide. Exchange custody, self-custody and regulated custody have different trade-offs.
How to use it
Start with risk tolerance and operational competence. Losing access can be as damaging as market losses.
Investor checklist
Check key control, withdrawal policy, counterparty risk, platform jurisdiction, security practices, backup process and transaction records.
Frequently asked questions
What should I remember?
Custody comes before allocation size.
Where does this fit in the portfolio?
It belongs in the risk-management layer of any crypto decision.
What is the main risk?
The main risk is owning an asset without understanding who controls access.