It seems most bitcoiners prefer cold hardware wallets over online platforms but why is that? Considering platforms like coinbase are FDIC insured and have the best security in the business, it seems much riskier to try to secure my bitcoins on my own. I feel my house burning down or some other accident destroying my wallet is much more likely than losing it on Coinbase. And if there is a breach in coinbase, I get it back... so what am I missing?? While I’m not new to owning bitcoin, I am new to learning about it. So I apologize if this is an annoying newb question.
When you create paper wallet or hard-copy wallet backups, you normally create multiple copies and keep them in different locations. So even if your house burns down, you won't lose the access to your coins. However, there is a chance of it getting stolen and precautions need to be taken to prevent such a scenario. Coinbase on the other hand is not very trustworthy. They have close down user accounts and frozen the coins from time to time for silly reasons.