When you deposit your coins on exchanges, you no longer have access to them, from this moment you depend on exchange.
Exchanges can or can't but still do:
You have an access to centralized exchanges, but you're not have full 100% control over your coins.
Ask you for KYC documents
Ask you for additional information
Ask you for the source of money
Freeze your account
Trace your
This easy to solve by using P2P platform free KYC e.g. Bisq, hodl hodl, localcryptos.
Exchanges can get hacked and you may lose money
This is why you shouldn't hold your coins on centralized exchanges, just use to buy and sell your coins.
3. Leverage & Margin
Trading with increased Leverage, Leveraged tokens & Futures is very risky, especially when the leverage increases.
Honestly spot trading is the actual trading and futures/leverage you're trading with a contract and not the actual coins, I used to think futures/leverage trading is scam, change my mind.