Most of the small traders don't need to use centralized exchanges and do kyc verification, but they still do it, and they think Binance exchange is their ''wallet'
Another down side of using this exchanges is risk of coins confiscation, account getting frozen, higher fees for withdrawal, and risk of hacks and leaks.
Generally speaking, it is common on centralized exchanges, not only Binance. Please feel it a right way, I am not defending Binance.
People are funny this way, they can say "I want to control my coin, have key of my coin. I want to have DEX to use ..."
Later in practice, they stake their coins on DEX, and nightmare is always waiting to drop on their heads.
By this example, I mean they just saying and don't actually understand what they say.