good point in terms of staking instead of holding in a usual way, if you believe and trust the exchange that you are using and you also believe with your chosen asset, staking would be better than following your statement, there's decline in a current value and if you are just holding your coin without staking the only benefits will be if the market start to pump, unlike when you are staking then you will be able to receive that staking rewards that will add up to your earnings in case that the market will be nice to you and favor your position.
The problem right now is that if you are just using your trust it will kill your just imagine the FTX people trust it that is why a lot of people lost their money, that is why it is better you wont put your assets in exchange unlike before that it is really okay, even my self hold couple assets before but when the FTX issue rise up ive withdraw it all just to be safe
Putting your trust in others is not the way to survive in this market. It is well known that staking offers some benefits compared to holding and doing nothing. But how to choose and know that the centralized platform will be safe for us? What to take to guarantee us? Let's not forget why we need bitcoin, besides the profit it brings, we need it to move away from centralized systems like banks. But it would be ironic if we criticize banks and use centralized exchanges to deposit our bitcoins.
I would rather hold my bitcoins in a non-custodial wallet and find another way to accumulate more bitcoins than handing over my bitcoins to a third party.