Your response is exactly what I'm talking about with regards to UX. When you started on the internet, you probably didn't (and may still not) know how DNS works, but you use it thousands of times, every single day.
Lots of wallet options now and they've gotten pretty advanced. Coinbase Wallet [0] is fully self custody and has anti-phishing, security and backup features built into it. You don't need to host anything. Backed by a public company that's been in business for a decade.
Start small. A few hundred $'s worth of crypto, something you're not afraid to lose. Then, no need to worry. It isn't like anyone starts riding a bike at 100mph.
Banks do fail, sure you can get FDIC, but as we saw with the fairly recent SVB debacle, it can have a real impact until it kicks in. I wouldn't count on being able to sue someone, when they've taken all your funds and you're just trying to figure out how to live.
Much like everything in life, all of this is really just a matter of having an interest or need to try new things out. That's what blows my mind about HN negativity. We are supposed to be curious technology people, but instead it is full of downvotes and an instant negative reaction. Never about, "I tried it and I found out that I didn't like it for XYZ reason."
[0] https://www.coinbase.com/security
