Many may say that holding bitcoins in an exchange account is risky, you are not the only user who is holding their investment in an exchange account, there are much bigger investors than you who have left millions of dollars in exchange accounts. Since they took this risk, you must also take risks, and without taking risks, progress in life is not possible.
Keeping your Bitcoin on the CEX exchange is not taking a risk, is suicide. You probably allowed a third party to control your Bitcoin, and you can lose your Bitcoin from the CEX exchange if they decide to take your Bitcoin or if there is a hack on the CEX exchange where you kept your Bitcoin. You can wake up one morning to discover the withdrawal function has been disabled and you can not withdraw your Bitcoin, since it is not your key, not your coin. Since the transaction fee on Bitcoin is high now, it is only advisable to keep our Bitcoin in the CEX exchange if we are accumulating Bitcoin with the DCA strategy but when we have accumulated the Bitcoin that is worth $500-$1k you can withdraw it to your non-custodial Bitcoin wallet, where only you have access to our Bitcoin.
I saw that comment and I have tried not to respond but for the same of the many new guys here, it is important we address it once and for all. Your choice of words is perfect because it is truly suicidal to use CEX as a place to store ones assets. The forum is awash with post admonishing people to only keep little funds, probably what they want to use in centralized exchanges as it is never safe to use it for long time storage. Anyone who have spent some time in the forum would have already seen the phrase
"not your keys, not your coins; it is as simple as that. Wherever you have your assets stored, the first question should be if you are in possession of the private keys or seed phrase of the wallet. If the answer is no, then there is need to stop and change.
People tend to forget so soon what danger awaits the centralized exchanges. We have forgotten where we are coming from; from Mt.Gox to FTX and many others. These ugly incidence left people broke, frustrated and depressed. If we cannot learn from the past, how do we progress? Centralized exchanges are never safe for long term holding because there are several ways they can be compromised including collusion of insiders or former staffs.
Recent hike in transaction fees has actually emboldened some people to start using CEX for storage. Even though this may seem understandable, we must be cautious too to avoid regretting at the end of the day. Consequently, suggestions have been made to convert weekly DCA to probably monthly DCA as a way of reducing the number of transaction cum transaction fees. Many of us in this situation have already made the necessary adjustments to continue using the DCA method of buying Bitcoin even when the high fees lingers.