Precisely. Better to keep them in a software wallet on a phone than on an exchange. I'd keep only that which I wanted to trade with on an exchange; funds which I may need to move in and out of the exchange more infrequently in a phone software wallet; and the long-term 'savings' in a paper or hardware wallet offline.
RE: Step by step guide to transferring your Bitcoin to a virtual paper wallet before August 1st, 2017