I've been holding btc in paper wallets since 2011. They're easy, free and no one has access to my btc but me.
There are lots of paper wallet generators but it seemed like an exercise in frustration to actually use the private key on the page to spend the money.
I generate keypairs using the reference client on an offline device that never touches a network.
Private keys can be imported and spent using almost any wallet: Coinomi, Mycelium, the reference client, etc.
I hope Coinbase gives you your btc when the run starts next year or two.
Any coin on exchanges does not belong to you. Only coin in which you and you alone hold the keys, is yours.