As stated, I agree on storing my funds on a cold wallet and not on exchanges (for the long term). I only find exchanges helpful if at the moment you receive them, you spend them. Otherwise, an exchange is working like a bank, and even worse. Why should I trust a middleman? Where are we? On the fiat system? Because as far as I know, bitcoin created to prevent trust and not the opposite.
About the
not your keys, not your bitcoins, I totally agree upon that. If you have 1
BTC on your Binance, you don't really have it. It is Binance's bitcoin, they just allow you to transfer it. OP, you don't have to get deceived to learn. There are so many failures on trusting such companies in the past.
And to be honest, only those who don't know how bitcoin works pay Binance. The educated crypto-enthusiasts know what's right and what's wrong.
The first main reason is that exchanges pay you an interest rate on your Crypto whilst cold wallets pay none.
By the way, this is what banks do.
For instance 8% APY on your USDT is something that is seriously worth more than just additional "security" which is not really a true security because you are relying on a centralized private company such as Ledger.com and people seem to forget that
Are you talking about hardware wallets here?