"It's stupidity to have thousands in Bitcoin using a software wallet" - stupidity or not, before the advent of hardware wallets, this is how everyone stored their bitcoin. Some, perhaps in more than thousands.
why spend dollars on a hardware wallet when a software wallet can do the same?
These wallets perform the same function, but in completely different ways. The main advantage of hardware wallets is that it effectively eliminates the threat coming from online. Let hackers try to physically press the transaction confirmation button remotely.
This was how I found FreeWallet, I use this to store some Bitcoin, it was easier for me because it required only email login and password,
Cryptocurrencies are designed in such a way that their storage can't be
simple. This
simplicity comes at a very high cost. Well, you already know that.
"Not your keys - not your wallet". And you are limited to only "
email login and password".
Things are different now, in fact way better, still if you are new and you want to DCA into Bitcoin, kindly consider getting a Trezor wallet at least, don't keep Bitcoin worth $2000, $10,000 on a software wallet, even if its a open source software wallet I believe this amount is too much for a software wallet, having this much means you can afford a hardware wallet.
Better yet, store it in several wallets. Remember to diversify.