This is why I keep repeating this mantra: do not use an exchange if you want to truly control your BTC! And, as we have seen in this example, local wallets are indeed the safest option.
But is it really possible to not use and exchange? How can you convert your Bitcoin to cash then? Or how can you buy Bitcoin with your cash if you do not use an exchange? Isn't it too much to advise people to not use an exchange and isn't it much better to advise them to not leave their cryptocurrency in an exchange nor use it as a wallet in keeping our cryptocurrency?
I understand what you're saying, and I partially agree with you. DEXs aside, it is impossible to get in or out of crypto without using an exchange. But, you know that some people leave their cryptocurrency in exchanges? They probably do so because they want to save on some transaction fees or they are too lazy to go through the process of withdrawing their funds. It's like going to the store to get groceries, but instead of taking them home you leave your bags at the cash register. It's a big risk. Exchanges could be hacked or they could go bankrupt, and you are exposing yourself to a lot of risks that could result in loss of funds.
If you want to hold your Bitcoins and use it as a store of value, then the best advice is to avoid using exchanges as much as possible.
