Suppose I hold lot of bitcoins in exchanges and in some wallet. To prevent the loss of bitcoins, how should one manage them?
Generate multiple new addresses. Distribute the bitcoins among these addresses. Copy the private keys of these addresses to paper wallet.
Is this the way to do it?
What are other better ways to manage large number of bitcoins?
No, don't you store all your bitcoin on exchange site, especially if you stored for long time like 1-2 years, it's really risky. You can try popular bitcoin web wallet like blockchain.info or you can stored itself by download bitcoin core and store all your bitcoins there, it more safety though and only you that control your wallet.