If we talk about direct ownership, an investor buys the actual crypto and holds it in their own wallet. This offers full control and potential rewards like staking, but also comes with the responsibility of securing the asset, including managing private keys.
Indirect ownership, offers exposure to crypto through products like ETFs or funds, without actually holding the coins. It’s easier and safer in terms of security since there’s no need to manage wallets, but it lacks the benefits of direct control, such as staking or full participation in DeFi.
In terms of risk, direct ownership gives more control but also more responsibility. Losing access to private keys or getting hacked can result in a total loss. Indirect ownership is less risky in terms of security, but it depends on third parties, which can face their own challenges, like regulation or mismanagement. The choice depends on whether someone values control or convenience more.
