>Yes, and I tell people not to store on exchanges, take custody of their coin
The reality is most people will not do that as it is a massive PITA. You can observe this right now.
>There are other ways to buy and trade coin too. Earning is best.
That's even worse, the coin can become devalued in between the time you started the work and when you get paid.
>Can you elaborate how a bad actor, any bad actor, can confiscate, steal, reorder or devalue a UTXO recorded on an immutable blockchain for all eternity?
They don't have to do that. They can use any number of other techniques to stop you from transacting. Or they can just lie to you, gain your trust and then scam you into giving up your coins, as seems to be very common these days.