I am in the process of purchasing a Ledger Nano offline wallet and it got me thinking about why people store their digital assets on crypto exchanges.
These exchanges are susceptible to hacking, insolvency/bankruptcy, misuse of customer funds (FTX) etc.
These are some reasons why it is discouraged to use exchanges wallet as a storage wallet but there are also some reasons why many people are doing this;
* amount of coins stored
* for trading purposes only ( it saves withdrawal/deposit fees)
* hardware wallets are expensive ( we'd rather prioritize investing first)
* safety is out of their mind
I'm using an online wallet anyways but after many years of using this, I've never encountered worse issues and never experienced losing my funds. Maybe because I was careful in handling my keys and password. If we are still careless, even using a hardware wallet couldn't protect your funds 100%.