I think these mistakes are often made due to people thinking their funds are "on" a hardware wallet or exchange. Those are better considered as holding the keys to the doors unlocking the "funds", which simultaneously exist everywhere and nowhere. Bitcoin UTXOs are Schroedingers' Money, they don't exist any 'where' for the to be on or in. That terminology itself comes from the physical world's paradigm, while the digital realm behaves very differently. The existing Gatekeeper mentality can't imagine a world without fences. So, they keep playing fiat games and act surprised when they win fiat prizes.