It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?
Why a lot of people are avoiding exchanges is because they are hot wallets, and hot wallets are online wallets which are mainly the target for hackers. You would hardly see anyone going after a cold storage, So, what they usually go for is exchanges and that’s why people are afraid of storing their coins on an exchange.
If the exchange is not working on their security, they might end up getting hacked and if a lot of money is stolen from that exchange,it may affect them and they wouldn’t be able to pay back the investors or users of their exchange. As for cold storage, just like the one you bought (Ledger Nano X), for your wallet to be hacked, it would have to be a mistake that is coming from you. That’s why you shouldn’t be giving out information about yourself online or anywhere at all. Sensitive information about you should be kept secret. With that said, for anyone to be able to have access to your cold storage they must have in one way or the other had access to your private keys.