Exactly, therefore, when you have made a lot of profit from cryptocurrency, it is better to keep all your assets in a digital wallet such as Electrum or others. Never store it in an exchange wallet because we don't know how long the exchange will be around.
Exchanges are for trading, not for storing assets, but in reality, many users have considered Binance or Coinbase as personal wallets to store a lot of money. Honestly, we always want to make more profit from our assets, and Simple Earn or staking on CEXs is really attractive. Coinbase understands this, so they continue to maintain staking instead of giving up to avoid trouble with the SEC.
In crypto-friendly countries, users can feel secure using CEXs, even storing a lot of money on CEXs. In countries with an unclear view of crypto or constantly changing policies towards crypto, users should prioritize self-custody of crypto in personal wallets to avoid problems. For example, in Nigeria, users are facing the risk that their personal data when using Binance will be made public under pressure from the government.