Why are investors more likely to hold Bitcoin in exchange wallets?

[Finebone]

I think it's more about easily access to withdrawal than anything else, because these holders knows the danger of holding unto their asset in an exchange, but they keep on doing it because they mostly think that they are not ready to go through the stresses of transferring their Bitcoin from their wallet to their exchange account.

I personally hold my Bitcoin in a self custodian wallet, but sometimes I see it as a very big stress to be transferring to an exchange if I want to make a withdrawal or want to trade it. So I feels like it's the problem most Bitcoin investors are having, that's why they are still holding unto their asset in an exchange even after knowing all the risk involved.