It is true that storing coins on centralized exchanges carries a lot of risk. Exchange rules and KYC requirements can change, and your account can be closed or your funds frozen for any reason. This is a big concern for many users.
However, storing coins through decentralized wallets is actually much safer and you have full control over it. By keeping your wallet seed phrase and pass secure, your funds are completely safe, and you can access your coins at any time, even after many years. This is much safer and more reliable than on an exchange.
However, if you ever lose/forget your seed phrase and pass, your funds will be completely frozen. Or if someone else knows your seed phrase and pass, they can take all your funds without your knowledge. So always keep your seed phrase and pass private, and keep it safe, so that your funds will be safe forever.
I write down my seed phrase and pass in a diary, and keep it in one of my lockers, and only I have the key to it, and no one knows where my seed phrase and pass are, not even my family. This keeps my funds very safe.
Keeping your coins in a decentralized wallet is much more controllable, but it depends on the security of your passphrase and password. Keeping your coins in a CEX can be risky, but you must be extremely careful.
Keeping your coins in a centralized exchange (CEX) means that you are losing full control of your coins. Of course, we would never want to give access to our hard-earned wealth to someone we have never met. So how can we decide to use it in a centralized exchange? Bitcoin is where the holders have the most passion. Which we want to keep for ourselves under any circumstances. If you keep your coins in a CEX, your account may be closed or frozen if their rules or KYC change. Which simply means you lose your coins.
On the other hand, by using a decentralized wallet, you can maintain full control of your coins. If your coins are in a decentralized wallet, you can access them at any time, even years later. If you keep your passphrase and password for a decentralized wallet secure, your coins will always be safe. However, if you lose or forget your seed phrase, you will no longer be able to access your coins. Also, if you tell someone else your seed phrase and password, they can take your coins. I write my seed phrase in a journal and keep it safe in a locker, so that no one can find it. I keep my coins in a decentralized wallet because I know they will be safe. Because I will have complete control over my coins.
Remember, with a decentralized wallet, you own your coins, while with a CEX, you control them.