The risk of leaving your coins or tokens on exchange is big but it is not biggest one. In fact, the biggest risk is unknown future price of coin or token you invest in and stake or yield it.

In theory, APY can be high but it does not make any sense in the end if after one year, price falls a lot, halves or lost more than that. When you choose a coin to yield, fundamentals are very important because such things can help price to be more strongly survive against volatility of general market.

So if a coin has a good APY in theory, what you need is only a stable price of that coin. Then you can end with good profit after a few months or one year.

From the perspective of what Bitcoin stands for, I think it's a bad idea - because each user should be their own bank and have exclusive access to their private keys. The risk taken by those who deposit BTC to earn interest is therefore always present, but I understand that it is acceptable to people when they see the interest offered to them compared to traditional banks.

One old faucet that is still active offers just one such option with an interest rate of 4% + per year, and since I have some active refs and that it is a BTC that I have not personally invested in, I use that option. However, if we are talking about a significant profit, less than 1 BTC deposit on such services makes no sense to me. The risk is simply too great for what I can gain from it.

For Bitcoin I don't do that since the risk is bigger than the APY, trading is far better than staking Bitcoin.

For Altcoins the APY is worthy and most of altcoins itself is centralized, so staking isn't really bad here since holding the coins itself has a risk. Personally I don't recommend to buy altcoins since you need to take huge risk or can be defined like go big or go home.

Most people will tell you that it's a bad idea and I would agree. Staking and earning interest on coins requires that you give up custody of those assets and put them in the hands of someone else.

Ultimately, the choice is yours. Do you think the interest rates are worth giving someone control over your bitcoin? History has shown us that many platforms have been hacked, or the owners have performed exit scams and rug pulls. There is no protection against that and it can happen at anytime if you are dealing with untrustworthy individuals.

Personally, If I had some altcoins that I would be willing to "gamble" with, I would stake them somewhere in return for a decent percentage. But I wouldn't do the same with my bitcoin.

If holding, then i will just decide to hold. My side earning maybe trade with money that i use to trade and not hold. Staking bitcoin or maybe save it and expect for a yield i never think about that because not want to put my money into other people or company because risk that can be come is also bigger.

To earn while holding is a pretty good idea but to let somehow do it, instead of yours, like staking is totally risky. But many had done this and become their habit now, perhaps, it was not a problem for as long as it was staked on the trusted exchanges. I actually made this thing, with 2-3% APY is good enough but if you know how the other way that could increase your profit, that was a great idea ever.
I don't stop those people are currently staking but have to be sure that you don't have to complain about whatever happens like hacking is prone to most exchanges.

Firstly, there aren't much opportunities for Bitcoin out there. The ones available are just not worth it since you've to give up custody of your coins which isn't advisable. The rewards doesn't justify the rewards. Another point to note is that there aren't many opportunities like DeFi for Bitcoin and shady people can just make one with the primary aim of milking peopl their bitcoin all in the name of earning APY/APY rates. NOT WORTH IT.

Not really worth for the risk imho and where you do able to see or check out those good interest rates with those platforms which give out interest in fiat?

Staking does only have max of 2-5% APY which i dont consider to be a good idea or could really equal to the risk you've been putting because
we know that centralized platforms does have the tendency or risk on running away with those funds.

So i dont see for it to be worth or considerable but still its your choice to make though.

I think it's better to keep your BTC in your own wallet rather than putting it on some exchange that will offer a small number of fees that won't really matter to you. This time, the pros cannot overtake the cons. Imagine you are after the small percentage fees but ended your BTC stuck on their exchange? This has happened before and it would not be impossible to happen again. I experience such a thing when I cannot withdraw my crypto assets on Okex when their withdrawal function was not working for a month.