The latter I don't necessarily agree with. Consider that the majority of properly run servers are not exploited, at least not in any meaningful way, cloud can be safe, especially if you limit services to the bare minimum. In the end your home machine is not particularly better protected, you're still online and visible to exploiters.
I don't save these essential things on a PC. They are on unconnected drives that are kept in a safe place. 1000 times more difficult to lay your hand on then hacking the cloud.
Passwords, log ins and source code are never on my PC's. I have a seperate PC for trading.