Solving Your Biggest Fear: Why Hacking Isn’t the Real Risk in Crypto Investing
When investors first consider cryptocurrency, their biggest concern is almost always the same: “What if I get hacked?”
It’s an understandable fear. Crypto feels digital, new, and unfamiliar. Many people imagine a scenario where a hacker somehow accesses their computer and drains their account overnight.
But here’s the reality: hacking is not the primary risk facing everyday crypto investors. The risks that have impacted the most people are far less dramatic and far more common: exchange failures, account freezes, and custodial mismanagement.
The Real Threat: Centralized Exchange Failure
Most new investors start on a retail crypto platform such as Coinbase, Kraken, or similar services. These platforms are convenient and easy to use, but they come with a structural issue many investors don’t realize:
- You don’t own the asset directly—you own a claim on it.
- The exchange controls the private keys, not you.
- If the exchange experiences a solvency issue or bankruptcy, your assets may be temporarily frozen.
The Solution: Institutional Standards and Qualified Custody
If your goal is long-term exposure—not short-term speculation—the safest approach is to move your assets into a regulated, segregated, fiduciary-protected custody framework.
This is the structure we use at Keychain Asset Management.
1. Segregated, Titled Ownership
- Your assets are held in segregated accounts.
- You retain legal title to your holdings.
- Your assets remain separate from the custodian’s finances.
2. Institutional-Grade Cold Storage Security
- Offline key management
- Multi-signature authorization
- Geographic distribution
- Institutional insurance coverage
We use the industry leader, BitGo, as our custodian for digital assets. Learn more about their security framework here:
Unmatched Security – Trusted by Institutions
Peace of Mind Through Fiduciary Oversight
As a fiduciary, we:
- Mitigate operational risks
- Oversee custody and security
- Integrate digital assets into your broader financial plan
- Handle tax, compliance, and long-term planning
Bringing Clarity to Crypto Wealth Management
Periods of volatility can be constructive moments for long-term positioning. For investors exploring a strategic allocation to digital assets, the current environment may offer a timely opportunity to take the next step.
Ready to Start Your Secure Crypto Journey?
Contact us today to explore how to invest in digital assets with the right structure, custody, and risk management in place.
Disclosures: Keychain Asset Management is a Registered Investment Adviser (RIA). Investing involves risk, including possible loss of principal. Past performance is not indicative of future results.
About the Author
Brent Pearson is the Principal, Chief Compliance Officer, and Investment Adviser Representative at Keychain Asset Management. With over a decade of hands‑on experience in the cryptocurrency market and a background in FinTech software development, Brent brings a rare combination of technological acumen and financial insight to his work. He is the author of ‘Understanding Bitcoin and Protecting Your Assets with Crypto: How to Secure Your Wealth in Any Financial Climate‘, reflecting his deep commitment to educating and empowering investors. Brent founded Keychain Asset Management to bridge the gap between traditional wealth management and the evolving digital economy, and he upholds a fiduciary standard to ensure every piece of advice is unbiased and in the client’s best interest.
