I would like to ask the following question on this site:
"What's the difference between a Bitcoin Wallet and a Bitcoin Exchange"
I want to invest a small amount of money in Bitcoin. Reading this, I discovered that one should create a Bitcoin Wallet before buying Bitcoins on a Bitcoin Exchange such as Coinbase or Kraken. I don't understand why I should do that, isn't enough to download the Coinbase app, for example? Also, the link says that
While exchanges offer wallet capabilities to users, it’s not their primary business. Since wallets need to be kept safe and secure, exchanges do not encourage storing of Bitcoins for higher amounts or long periods of time. Hence, it is best to transfer your Bitcoins to a secure wallet.
What's the reason for that? It seems very weird to me. If I buy stock options, no one would object to me keeping them invested for years. Then why can't I leave my investment on a Bitcoin Exchange for a long period? Do I risk that the Exchange goes bankrupt or something like that?
Your help page says that investment advice is off-topic here, but I don't think this is precisely investment advice, though it is of course tangentially related to that.