It has been some months that I have been in this forum, I have started making arrangements for transacting with Bitcoin in the aspect of buying and storing. I don't have much knowledge of wallet to the extent of knowing a preferable wallet to use for storing my Bitcoin, right now I know that Bitcoin is a valuable asset from my understanding but other people doesn't accept the fact that it is really an asset, so I want to know a good wallet to use for my Bitcoin because I notice that some wallet my friends recommend to me are all exchange kind of wallet and I was told that it's not proper to use an exchange wallet for storing or saving of Bitcoin for a long time. I wish to have more recommendation or articles to read concerning wallets and it's security values but during my research I was recommended to use electrum wallet but I was confused if electrum wallet is an exchange or a custodial wallet, therefore i need a good direction, clarification and update of suitable wallet from senior colleagues.
There is nothing wrong with keeping your assets in the exchange as long as you choose the correct exchange or one that has been there for a long time, since there are many traders and small investors who do just that. If you intend to keep your asset for a long period of time, it is important and practicable to keep it in a non-custodial wallet such as electrum because it's already tested. Because electrum only supports Bitcoin, you can keep your altcoins in Trustwallet or Metamask as a non-custodial wallet, which is considerably more secure than an exchange because you owned the private key.
Not all centralized exchanges are bankrupt or will collapse, there are many old exchanges like Coinbase or Poloniex...so far, they still exist and work quite well. But if you are a long-term investor who is not a trader, you should not use an exchange's wallet to store bitcoins. There is no guarantee that one day they will not collapse, we should still prevent diseases than cure. The exchange is a place for us to exchange, buy and sell, not a place to store assets, we should use it for the right purpose.
Electrum and matemask are good options, but Trust wallet, I don't think it is a good choice, it is a non-custodial but closed source wallet and is a product of Binance. We won't know what will happen to our assets when using a closed source wallet even though we own the seed phrase.