5. Use reputable exchanges: Be sure to use reputable exchanges that have a proven track record of security and reliability. Do your due diligence on exchanges and read reviews from other traders.
Yes, it is necessary to "use a good reputable exchange that has a busy record of safety and reliability", but it must be alert that central exchanges carry high risks even if they are reliable because they are: First they can collapse like FTX and many others. Second: They can ask you KYC at any time. Third: They can freeze your account for any reason.
Therefore, it is better to stay away from central exchanges and use decentralized exchanges, or to deposit only a small part of your capital for trading in the central exchanges.