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?
You have nothing to worried about your funds if you are doing the right thing and if there are no suspicious activities that might be caught their attention. Binance and some exchanges will take action and possibly freeze your account if you violate their rules and that is why we should be aware of what we're doing and must abide by the rules of the exchange otherwise.
But if you are using non-trusted exchanges, chances are;
-lock your account
-steals your money
Storing assets on an exchange is actually not so bad as many people say, I have peace of mind when using Binance as long as we strictly follow their regulations. Most accounts frozen or locked without prior notice are involved in money laundering and illegal asset transfers, with mistakenly locked innocent accounts to be reopened upon investigation.
But storing assets on exchanges is not really our money so only a part of assets should be stored on the exchange, not all assets should be put on the exchange.