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Even though I use Coinbase for buying/selling, I would not trust them to store my moderate balance of Bitcoins.

Their hot-wallet dependency and my storage of coins at a central location simply does not give me enough assurance my coins will be safe there for a significant amount of time.

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What are you talking about? Coinbase proudly explained their internal safety precautions, explaining that most of their coins are stored in a cold wallet, not hot wallet.

I should have stated I don't trust my coins in the hands of others.

Bitcoin, unlike other currencies are irreversible. You have one, and only one chance to keep them safe.

I rather be content with the loss of Bitcoins in my possession, _knowing it was my fault_, than losing them to a thief holding Coinbase's staff at gunpoint for the offline wallet's private keys.

I trust Coinbase with a small amount of coins. Similar to how no one walks around with all of their USD as cash in their wallet, it makes sense to only fund an mobile app/third-party wallet with enough bitcoins for convenient spending. Long-term savings should be stored encrypted and offline.

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