In r/ethereum, guidance reiterates not your keys not your coins and recommends hardware wallets for self custody, while allowing that some users may prefer a long running exchange like Kraken to avoid key management responsibility.
Self custody is the way to go.
However, if you want to trade a bit and don't want the responsibility of managing your own keys, I would recommend Kraken.
They also have proof of funds publicly.
I recommend going the self-custody route with a hardware wallet like Trezor Safe 3
As the old saying goes, [not your keys, not your coins]
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