The first main reason is that exchanges pay you an interest rate on your Crypto whilst cold wallets pay none.
Only some of them. Coinbase doesn't pay you anything. Some exchanges like yobit are really shady. Holding money on exchange in hope of earning 1% a year is really not my thing.
Secondly, we definitely believe that more and more users would move into hot wallets than using cold wallets, Ledger.com could become the next "Netscape" and then if your hardware device gets faulty and you would need support from Ledger.com - then you might find yourself in trouble. It's not a wild guess, this could seriously become the reality in the next few years.
If my wallet breaks I'll still have the seed. Do you have the seed for your exchange wallet?
