Sort:  

There is something called investors that rather just hold than invest in power ups

Still on the blockchain, but in wallets belonging to exchanges. The only reason to keep steem on exchenges is to actively trade it. It's a lot of steem out there, but they increase the liquidity.

You got my point, you don't control funds on the exchange. Even if you are active trader, speed of STEEM transaction alouds you to send funds quickly for trading.

Most exchanges take a cut of your withdrawals, so I'm guessing that they just don't want to pay any fees if they plan on trading with it again soon.

Maybe but Binance withdrawal fee is 0.01 STEEM. Not much...

Oh, that was cheaper then I expected. That's definitely a reasonable price to pay to get the funds on your own account/wallet.