If there is a local financial institution that is regulated by the government, you can deposit your asset there. Do not exceed the limit because the value of the accumulation cash may decrease due to inflation, so it is better not to go beyond the amount that is convenient for you. Smart people invest excess funds rather than accumulation cash.

Holding Bitcoin and maintaining the security of this asset requires you to acquire technical knowledge. You can acquire this knowledge without much complexity.

Avoid investing the entire amount of funds that you have. Even if you keep Bitcoin in self-custody, it is better to use multiple wallets rather than using a single wallet. Do not keep your assets in one place.

I agree Marcelo, old people don't even know how to use smartphones correctly but some of them are way too smart but mostly don't know what is the new technology, they just know it has made people less socialized, and more extroverted that they don't know when and what not to say.

And this is true as well.

But speaking of BTC safety, I would say you are right, we should not hold every coin in self custodial wallets and in exchanges I understand and know what kind of replies might be coming from readers of this post, that exchanges are not safe and TBH I also recommend people to not hold your coins on exchanges because anytime anything could happen and they can force you to withdraw while the withdrawals are restricted by them as well.

They play double game, they deceive you that's when you get frustrated with all the services of the same genre that's why diversification is a good option, hold few in exchanges and more in self custodial wallets but only for you, those who still think self custodial wallets are safe they will stay safe because they have this belief for a reason that the entropy of Coldcard wallet was low but there are others that have high entropy like Electrum etc.

I am not in any way promoting centralised exchanges. But some of the exchanges that suffered from hacks or went bankrupt were able to repay users. Although it took so many years, MtGox users got back their money. Binance and others that have suffered challenges didn't allow it to affect users. Other centralised exchange users are unlucky and have not been able to recover their deposits, therefore keeping large funds in these exchanges is risky. Those who dont want to take responsibikty sholld be willing to suffer the consequences.

The biggest advantage of self custody is that you have control but it's hard to say it's the safest in all situations. Because if you lose a backup or seed phrase, you don't have the option to call an organization and ask for a solution. It's a bit like the keys to your bike, If you leave your bike in someone else's garage, you have nothing to do but watch if it gets stolen but if you keep the keys and bike with you, you can at least be safe. If you can handle the seed phrase a little carefully, self custody is the most reliable way to sleep peacefully in the crypto world. Honestly it's not about who prefers which method but rather understanding the risks according to your own usage pattern. So if you take self custody, you are also responsible for properly managing backup and device security.

I don't know if you know this or not, but a bank's government-backed insurance company or agency only covers a limited amount of your total balance, which means that if it exceeds the insurance limit, you will still only get what was insured. For example, if the insurance agency has a insurance limit of $100k, and you had $200k in your account when the bank failed and had to shut down, you will only get $100k back from the insurance agency. This is only done if the bank has to be shut down, but if the bank is taken over by another bank that is ready to cover the deposits and everything, then your account will just be transferred to the new bank and they will cover everything. This is at least what I know based on what I've read about the subject.

About centralized exchanges, if an exchange files bankruptcy, that usually means that they aren't simply running away with the funds of their users, but they need a plan through which they are going to repay everyone but they can't do it at once and they would also stop their operations. Filing for bankruptcy doesn't mean that the exchange is free to walk away just like that. Of course, it's a different case if an exchange just shuts down all of a sudden and disappears, but regulated businesses can't do that.

I have seen many scenarios whereby a bank or financial institutions ran away with peoples money, and till today, they have never been able to recover their money, simply because maybe the user couldn't pay back or dead in the process. And in such case they court can only order him or her to pay you back, but can't force them if they had misused it. And that's where Bitcoin plays an important role in all this, due to the fact and ability to grant you full control over your money. And however, in regards to your second question which says if does it make sense to put all your money in self custody Bitcoin wallet? Then the honest answer to it is NO. But however, the majority of your money like 70% should be kept in Bitcoin self-custody wallet, whereas the remaining 30% can be kept in your bank for daily usage. And secondly, if you can afford different self custody Bitcoin wallet, it will be best, so as to avoid losing all your funds if one happens to be compromised, just like what happened to ColdCard wallet.

Yes, self-custody is highly essential. Those who have experienced getting hacked or scammed their bitcoin will definitely understand the real essence of self-custody. But those who have not experienced yet, they won't prioritized learning self-custody not because they don't want to, but some investors just want the easier way and avoid high responsibility.

However, they can't blame the exchange itself if something bad will happen to their bitcoin in the future. Otherwise, they should master and insist for self-custody in the first place because its the right and the best thing to do.

It is better not to safe on a centralized if one is willing to secure his or her investment. What we should always considered while securing our investment is first what is took us to get the funds accumulated, maybe it will help give some level of higher security consciousness that helps us seek for better ways to secure our funds in the right place and time.
The reason why centralized custody is on the high risk is because one need to trust there ability to safeguard his funds again losses from hackers or other forms of insecurities.

Diversification is a must bro, don't put all your money on one asset, BTC is good but gold is also good, you can buy fifty fifty or you can buy whatever you like most but don't think buying BTC and ETH and some other alts is also diversification because that's not.

Bitcoin when it will go down the alts will also go down so diversification won't save you here, you have to buy assets that will not dump or pump when your other asset will make a move.

Right now everything works the same, gold started its pump sooner than BTC but eventually BTC has also pumped 10% and some alts pumped more than 10% but then comes the risk factor so don't think alts are a better choice they are not.