I also got rugged by an exchange back in 2017, and had to take it on the chin, while I lost a lot of Bitcoin, which I can still be sour about today, it motivated me to get my act together and take self custody,

if I was going to be serious about this asset class, I shouldn't be skimping and relying on a password, custodian and maybe a 2FA, as the value of Bitcoin increases, the incentive to crack your account increases

Don't give them a sniff