What I personally do : I own about 30 btc, and I let them sit on Kraken.
I keep them there for several reasons :
- I dont trust myself to keep a paper wallet safe for a long time.
- I mostly trust Kraken, in particular because they have automated audits.
- I want to be ready to sell quickly in case of a huge crash.
Just wow... you are gonna get a BIG lesson in counter-party risk someday.