As cryptocurrency users, we've all heard horror stories about exchanges being hacked or shut down, resulting in lost funds. Yet, many of us still store our coins on exchange accounts, putting our digital assets at risk.Storing your cryptocurrency on an exchange can be convenient, but it's not worth the risk. Exchanges are vulnerable to hacking, and even if you think your coins are safe, you're still trusting a third party to secure your assets.
It is not advisable to store our coins in exchanges due to security threats and since they are centralized, the security of our asset is not guaranteed but to be honest, few number of people only hold bitcoins whereas there are people who earn in bitcoins and convert to Fiats so for those kinds of people who earns bitcoins and store them on exchanges is so it can be easier for them to be exchanged to Fiats and most of them store bitcoins in exchanges for a temporary time since they can sell it within the shortest period of time. Those who prefer holding their bitcoins on self-custody wallets are mainly long term hodlers since they know that they won't be touching it until a long period of time. Even though we may want to trust some reputable exchanges but yet we should not keep much of our coins on exchanges instead it can be left in a self-custody wallet then anytime you want to trade to get Fiats, you can withdraw from the self-custody wallets to your exchange and trade immediately.