Is it worth keeping cryptocurrencies in the exchange wallet?

I don't recommend leaving cryptocurrencies on the exchange for too long, especially larger amounts. Exchanges are targets for hackers and can have issues, so it's safer to store them in a personal wallet if you're planning to hold the coin for a while. The exchange is fine for buying, selling, and trading, but not for long-term storage.

The story changes completely if you're doing active trading versus long-term hodling! If you're constantly entering and exiting positions, it makes sense to keep it there for convenience, but if you plan to hold it for months or years, that amount should be in a wallet that you actually control, like a hardware wallet or even a cold wallet safely stored at home.

I had some Bitcoin and Ethereum sitting in Binance a few years back, and honestly it was just luck. The exchange had a security issue (nothing major, but it was tense) and I realized I was in a vulnerable position. Since then I've learned that leaving crypto there is basically handing control over to a third party, and if something goes wrong - a hack, the platform going bankrupt, funds getting frozen by regulation - you're in a weak spot. It really depends on how much money we're talking about. If it's a small amount you're trading regularly, it's fine to keep it on the exchange. But if it's something you're planning to hold for years, it's honestly worth taking out.

Personal security has to be the priority if you've got a decent amount. Cold wallets like Ledger or Trezor are the best option because you keep the private key and nobody can touch your money without your say-so. You can also make a paper cold wallet, which is basically impenetrable if done right. The annoying part is if you lose the key, the money's gone for good, so you have to be careful and store your backups properly.

In my case, I only keep on the exchange what I'm actively trading at that moment or small amounts for quick moves. The rest I keep on my Ledger that I have stored in a safe place. It's more work, but you sleep better at night knowing your money is really yours.