I hope you understand that there is a difference between Hardware wallet, cold wallet and exchange wallet/custodial wallet. The least place you want to keep your money is an exchange wallet because you don't have the private keys to that wallet and that means you can't authorize a transaction from the wallet since you don't own the private keys or seed phrase, this is why it's not advisable to store your coins on online exchange.

Cold wallets or hardware wallets are considered the best wallet to keep your coins because they are both offline and all your keys are managed offline but because hardware wallets sometimes are used to interact with Defi such as the web3, there is high possibility of your wallet been comprised with some malicious things that can make you lose your coins, not necessarily your private keys but somethings can make you sign some transactions which can make you drain your wallet, this is why cold storage are the best since you don't sign anything on web3 or online.