I have a friend that is really invested into crypto. She is very enthusiastic about it and I learned a ton about Bitcoin and crypto from her. But then she told me something that scared me: she keeps ALL her Bitcoin in the exchanges rather than a hard wallet.
I told her that was a security risk, she could get hacked, the exchange might play dirty with her money in the future, the exchange could disappear. Her response was that I was being paranoid, that her exchanges are safe, and that she is pretty careful anyway so she is certain hackers won't get her.
How do you convince people like that? I am worried Murphy's Law will hit her badly and she will lose her funds.
Just forward the url of this post and tell her to read all the comments. I am sure if she would be a wise person she would understand the risks of keeping her crypto on exchanges.
If she still decides to keep her money on exchanges then that's her own risk and if any money is lost then it would be because of her own decision.
Also, if she decides to transfer her funds to a non-custodial wallet then tell her to make sure do a good research and download the wallet from a genuine source.
Downloading a fake wallet will risk her funds.