You are right. I was also told by my friend not to keep my BTC savings or investments on the exchange. and it is better to store in a frozen wallet. because if the exchange is hacked or our account is hacked then our assets are more prone to being stolen. and I'm more calm if I store my BTC in a private wallet and I secure the privacy key.
Not frozen wallet, but on noncustodial wallet. If the coin amount is high, an hardware wallet or other cold wallet would be better. Frozen wallet is something that should be used in connection with a custodial wallet just like frozen account is used with a custodial exchange.
Exchanges are said to be mostly centralized these days, and that what’s make it more dangerous to still rely in them for safe keeping. Because the fact is, once you give others the right to your coins, your coins will not be safe anymore. Who knows if they will start taking advantage of your coins since you don’t have the full control on it. It’s better to keep them on yourself guarded all the time and also, never store them online.
That is true, but even if exchanges are not centralized, they should only be for exchanging, just like the principle decentralized exchanges are using. That way you exchange coin from your wallet though decentralized exchange back to your wallet, but in a way the coin will be exchanged from your wallet (the coin you want to exchange) back to your wallet (the coin you exchanged to)