Yes, for security reasons. If you do some research on some of the recent hacks on web-based services like this (I won't name names here...), you'll find that they were improperly using Nostr keys, attempting to use them to secure funds, and those funds were lost.

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That was one of the reasons I do not use this service anymore

you mean coinos? that wasn't the cause of the hacks at all

your email+password approach could very well be victim of the same vulnerability they were