I have most of mine on an exchange because I'm getting paid interest. Has there ever been a time when an exchange like Binance for example, steals your funds or gets hacked and people lost money?
I don't think it is a too bad idea to leave our coins on exchanges, but make sure the exchanges have good history and are friendly to their members. Of course, no exchanges are secure enough, all exchanges are possible to be hacked. However, several exchanges want to refund their members' money once there is a hack. I am sure Binance is one of the exchanges that have responsibility if there is a hacking case. So, I think we have no reasons to be so worried about our money. But never put all our money on exchanges, just put the amount of money that we can afford to lose.
^ That is correct advice, never put all your money on one exchange.
Binance is a trusted exchange for how many years but still, it is not ideal to store your coin in the long term even though they have a promise of SAFU which means all funds are safe and secure. But yet, this does not give any guarantee, everything on the centralized exchange could be hacked, so probably after trading, pull out your fund and store it on the non custodial wallet which is safe.
When it comes to binance, I have high regards that they won't steal from you. Yes, they have SAFU. But as much as possible, don't put all your crypto in one exchange. If you will not be putting your crypto for staking, better store your coins in your own wallet. I understand some are earning interest by staking or by flexible/fixed savings, as I also done that. But once you finished the period, transfer it to your own wallet.