Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.
Definitely people will still be storing their crypto on exchange, so we have to keep on enlightening people about the risk associated with leaving your coin on exchange. I don't know what you mean by we should move higher amounts of money to hardware wallet and leave lower amount on exchange, the amount you call a small amount might be a very big amount at my place, what I do recommend is that, any crypto you are trying to hold for a long term should be withdraw from the exchange, either big amount or small amount.
The only people that should leave money on exchange are traders, if you are a trader, you can't be withdrawing your coin everyday, so the best place to leave it is exchange. But as a trader, if their is any amount you won't be using for long term, then withdraw it to your hardware wallet.
Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue.
Since crypto have been in existence, their are lot's of exchanges that have been compromised, that's why we shouldn't just leave our coin on exchange, no exchange is too big to be hacked, so don't think any exchange is having high security and your fund is safe their, if your coin is not in your non custodial wallet, then it's not safe.
So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.
Most people store their crypto on exchange because they believe it's very accessible, they can easily login and sell their crypto any moment they want without paying any transaction fee. Some of them believe if they keep their coin on exchange, and the exchange get hacked, the exchange will be held responsible and they will refund their customers money, I believe this are some reasons why people leave their coin on exhange.