To decentralize the network, it is important that stakers use their own wallets and they do not stake on centralized exchanges. Staking on exchanges is dangerous and in the event of a hack, stakers can lose their coins. There are known cases where the owner has set up an exchange only to rob it himself. Not your keys, not your coins. The Cardano ecosystem offers many opportunities for coin owners to support the ecosystem and profit at the same time. By selecting a pool, the staker supports the activity of the pool operator. The positive contribution of pool operators can encourage adoption of the protocol and DeFi services. Centralized exchanges usually run their own pools and do not care about the development of the ecosystem. Owners of ADA coins can vote in Catalyst and select the project they consider beneficial. There is a small reward for voting. If you leave the coins to the exchanges, they may get the reward instead of you. If you have coins in your own wallet, you can participate in ISPO, or you may be eligible for some airdrop. Moreover, you can use DeFi services, which offer a higher yield than staking on the Cardano protocol. Over time, services will arise that offer a yield for the service while allowing you not to miss out on staking rewards. If you leave ADA coins on centralized exchanges, the exchange will lock the coins and not allow you to use them. If it offers a higher yield than the Cardano protocol, it has to take a risk it won't publicly acknowledge. He's probably using some DeFi service or lending the coins to someone for interest. If you leave ADA coins on the exchange, the exchange will profit from them, but you bear the full risk of loss.
