The truth of the matter is that you can not completely rely on exchange for the sake of bank frustrating you. Don't forget too soon that keeping money in exchange is also completely a risk because you don't have full access to that fund. Exchange according to how the name implies means centralized exchange (CEX) Meaning you don't have total control of your coins. You don't have privacy because if anything should affect that exchange, it directly affects your fund. Instead you should prioritize decentralized (dex )over cex. Because it deals with privacy. And secondly you don't make use of the seed phrase in exchange rather the exchange has the seed, while you make use of passcode.