Hi

I am not an expert but here are some of my thoughts on storing crypto either:

(1) On exchanges.

(2) On online and offline wallets provided by Crypto projects. 

(3) Offline wallets purchased by yourself.

(1) I will begin with exchanges.  As most people say if you keep crypto you own on exchanges then like everything online they can be hacked and they are a major target for hackers as they are storing huge amounts of crypto.

Pros of Exchanges - You can quickly sell your crypto if there is a sudden spike in price i.e. you dont have to wait for it to transfer by which time the price could have gone down if it is a short term pump.Also bigger exchanges often cover losses when hacked e.g. Binance has already covered losses from a hack of around $30 million (dont quote me on exact amount). You can also soft stake some coins and get daily interest on them which is usually less than normal staking however.

Cons of exchanges:

Many exchanges have been hacked e.g. Cryptopia and dont cover losses so your crypto/investment is lost. Also staking pays more when done directly with project. Fees for transferring crypto back and forward can mount up.Other exchanges have used peoples funds illegally e.g. FTX

(2) Crypto project wallets. There are projects that create online and sometimes offline paper wallets. Paper wallets are safer but you need to be careful to remember keys/phrases so this can be a downside. Online wallets are again hackable but some projects only store a portion of their crypto in their online wallets so losses would be minimised e.g. Electroneum online wallet.

(3) Purchased wallet: Best way to store your crypto e.g. Ledger Nano S or X or Trezor. They are like a pen drive and are only online when you connect them. They are ideal if you are a HODLer as you wont be transferring very often. Otherwise if you want to buy and sell regularly you have to transfer which can take a bit of time and short term opportunities to profit can be lost. Also staking isnt always available via offline storage so opportunities to avail of this passive income can be lost.

However crypto is a risky enough business so i would recommend at least storing most of your crypto in a purchased offline wallet. They can be quite cheap as new versions start to come on board e.g. a ledger nano s can be bought for around $60.

NB Update :-

If you are going to store some crypto on exchanges try to use exchanges that have insurance and cold storage wallets for the majority of their customer holdings. These include Coinbase and Binance.In addition Binance have a fund to cover hacks if they happen which is funded by them holding 10% of trading fees.