Crypto and in particular DeFi can be technically very complex, and the general audience often might oversee the importance of understanding the technical implementation.
In colloquial language, people often say something like "I've got 10 USDT in my wallet" or "my wallet has 1M Shibu Dogs". It sounds normal and assuring; we all have experience of having money in our pocket. As usual, it's not that simple after looking into the details.
Without the fundamental understanding of where tokens are actually stored there is increasing risk of losing money. It's a DeFi 101.