But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?
Sometimes you can easily earn 12% and more in a single trade. You could easily buy bitcoins on exchange when BlackRock filed for a bitcoin exchange-traded fund and profit from it, then you could easily exchange your bitcoins into Ripple immediately when SEC announced that Ripple was not a security and double your coins. Do you see how easily you could double your money recently? Who cares about Nexo's 12% yearly interest.
By the way, it's very simple to understand why people don't leave their coins on exchanges and wallets, it's simply because if you don't manage the keys of your wallet, then the stored coins aren't actually yours. If you see the ToS of exchanges, for example ToS of Coinbase, you'll clearly see that Coinbase has right to block your account and/or seize your funds at any time, for any reason and they don't have to explain things to you.
So, who cares about some yearly interest when there is such a big threat on the other side? Always prioritize your wallet's safety!
But now Trezor seems to be the recommended hardware wallet and electrum mobile wallet is also my choice.
And maybe you can make an exception for Ledger.
Trezor and Ledger used to be the most recommended BTC hardware wallets, but after Ledger implemented their recovery service and Trezor are implementing CoinJoin, but they are using Wasabi for it, who are working with a blockchain analysis company to blacklist certain UTXO, the recommendations on these two hardware devices has decreased. For users who may already have the devices, it may be okay to use it without opting in for their recent additions, but i think if someone wants to buy a new hardware wallet they should go for options like Passport, BitBox02, and other recommended open source hardware wallets.
I think Trezor and Ledger were never considered as the safest option out there. they were the most recommended BTC hardware wallets because they are one of the old ones, have good marketing and are easy to use while offering a lot of altcoins. I think that's the only reason.