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Without a doubt you are correct. Some people do not worry about keeping their money and coins on exchanges either because they are ignorant of the risks or because they are aware of the risks but choose to take them nonetheless. And while it may appear that a centralised exchange like Binance is completely safe this is not the case at all. Professional or expert traders are fully aware of these hazards and they also know how to invest their money wisely and safely especially when trading. There have been instances of exchanges going bankrupt in the past and when FTX exchange went bankrupt it took a substantial chunk of money from several major investors. You may have recently heard of the Atomic Wallet hack in which many customers cash were transferred to unsecured wallets and no one knew where their funds ended up. We must thus take all necessary precautions to keep our money or coins as secure as possible.
The rhetoric of keeping coins on exchanges despite the risks seems unwise to me. Exchanges have long been the Achilles' heel of the crypto world. Centralization is a vulnerability, and these platforms, like Binance or FTX, are nothing more than juicy targets for hackers.
This isnt fear-mongering but an assertion based on historical evidence. Recollect the catastrophic Mt. Gox incident or the Bitfinex hack. When the dust settled, it was the innocent investors, not the 'whales', who suffered the most.
I cannot endorse such a nonchalant attitude towards security. Yes, dealing with private keys and hardware wallets can be cumbersome, but that's the price one must be willing to pay for true financial sovereignty. Its high time we stopped treating exchanges as banks and took full control of our digital assets.
Given historical occurrences like Mt. Gox and Bitfinex I can see your concerns about the security dangers involved with storing Bitcoin on exchanges. We must prioritise the security of our digital assets and be aware of the weaknesses of centralised platforms. While dealing with hardware wallets and private keys may seem tedious, they provide actual financial independence and autonomy. Keeping our private keys secure reduces the possibility of being a target of exchange attacks on a big scale. However it is crucial to take into account each person risk tolerance and situation because some people may prefer the simplicity and liquidity that exchanges provide for chances in trading or investing. By finding a balance between convenience and security and learning how to secure cryptocurrencies we may have the power to manage our digital assets and adhere to the decentralisation and financial sovereignty tenets.