A cryptocurrency exchange is an exchange, a platform for those who are trading. So, if you aren't trading, you have no reason to keep your funds there.
Trading is risky so always do trading with small capital, not all capital we have.
Storing money on centralized exchanges is risky too, so always store small capital on centralized exchanges.
Combine them together, the common recommendation is always store small capital we have on centralized exchanges for trading.
because in principle the exchange is actually a place to convert or trade, not to store our assets. although I'm sure there are still those who do it (storing assets on the exchange), they definitely have their own reasons and they accept the risk.
Those who do this are not unaware of the risks or have not read history. they have that knowledge, but perhaps out of necessity, they still take that risk.
Two biggest barriers for safe practice. The first basic barrier is don't know about risk and the second barrier is knowing about risk and what is recommended safe practice but lack of determination to do such practice. Because they don't understand severity of risk and want to ignore risk to get convenience in practice.
To minimize risk, it is better not to leave assets on the Exchange in large amounts or for long periods of time.
People can use exchange account, wallet on exchange like their hot wallet and must have small money in hot wallet.
With hot wallet on exchanges, they can trade and with small capital in it, they will have smaller loss than if they store all money in hot wallet on centralized exchanges. Many risks at the same time, loss in trading and loss of capital by exchange problems.