I have known about bitcoin for some time but just started digging for details. I have put in about 100 hours of reading so far and the subject matter is vast.
100 hours is like 0.0000000000000001% of the overall time you need to learn
basics of the crypto world. I am involved since 2014 and I still consider myself a newbie when it comes to the knowledge I gained so far about this world.
1) I assume that if I use an exchange, that exchange system will have my keys. If anyone else holds my private key, what's the point?
- They give you extra service against that compromise, in other words, you are allowing them to spend your Bitcoins but since you are the complete owner, they will do it only after your orders to do so.
However, hackers are not bound to follow your orders so if they somehow get the access to your Bitcoins then they will steal it.
2) What do I use, a wallet etc, to keep my private keys in my possession only?
- The offline wallet is the best way to hodl Bitcoins. You can either go with the hardware wallet or even securely generated paper wallet. The bearer of the private keys is a complete freedom to spend the funds associated with those keys. Exchanges are not breaching our trust just because they want to maintain their reputation for their business activities.