there was a topic i read here the other day about self custody being more difficult to achieve than third party custody
Isn't it amazing that centralized exchanges have managed to convince people that writing down 12 words is outside of their capacity, and they need to give all their coins to complete strangers instead.
that is the idea that a lot of people have and so they sleep well because they think the third party service is their safest option in keeping their BTC.
Pretty much every centralized exchange has lost coins in a hack at some point, so such an opinion is just provably wrong. Or take a look at FTX as a shining example - one of the biggest crypto exchange in existence, and court documents show that they were storing private keys on an unsecured group email account. This is the kind of "security" you get with centralized exchanges.