Most people vastly underestimate counterparty risk in crypto. There's a critical distinction that often gets glossed over: bearer assets versus non-bearer assets. A bearer asset means you hold it directly—no intermediary, no trust required. A non-bearer asset, by contrast, depends entirely on a third party. That's where the risk lives. You're not just betting on the asset itself; you're betting on the counterparty never failing, never disappearing, never being compromised. Big difference. Understanding this gap isn't academic—it shapes your entire custody and allocation strategy.