Storing our assets on an exchange means we don't trust ourselves. Storing our Bitcoin on an exchange also indicates we trust the exchange more in terms of security. And I think the only person we can trust most right now is ourselves. Likewise, it's better to hold our Bitcoin assets in our own cold wallets. I don't doubt the security of CEXs, but we know that a CEX can go bankrupt, as several large CEXs have done before. And when that happens and we can't withdraw at all, only then will we realize how foolish we've been. And we can't blame the CEX because storing assets there is our choice. So, personally, I only deposit my assets into a CEX when I'm actually going to trade them. Once I'm finished, I withdraw them the same day. Because you never know what can happen to a CEX. Unfortunately, many beginners entering the crypto space still don't realize the importance of basic insights. "Not Your Key, Not Your Coin."
In the crypto world, the ideal thing to do is to trust ourselves in the long run with our assets. At a glance, the exchanges may seem safe but we know what ended up happening once the proverbial door hit the fan, such as in the cases of FTX among others. It is not very much of hacking, but of control. It is with cold wallets that such control is returned to us. Nevertheless, I as well have no informative control of crypto on exchanges unless I am actively trading. My personal action is to move it out as soon as I am done with it. Well, it is simply not worth taking a risk. The statement of Not your key, not your coin often appears to be simple though in fact, it carries much sense and people tend to know it the hard way.