Firstly you need to learn that your crypto isn’t stored on a wallet or on an exchange wallet. But for your question it’s better stored WHILE mot trading on a normal hardware wallet or not even in wallet but just the private keys to the chains as your crypto isn’t stored in any wallets be it app or program or hardware or on exchange. It’s held and accessed on its chain. Say it’s ETH or ERC tokens this run on ETH chain. You require your EpTH private key and or the wallets seed phrase to be able to move and or trade and or send your crypto.

Your wallet is like a bank statement you can’t make transactions with it. But the bank private details can be used to make transactions the only difference is the wallet CAN be use to make transactions but you need to use a seed phrase or the private keys to do so on the live exchanges and or to move to another wallet or chain.

This will take a little time to wrap your head around but your will get there!