Cryptocurrencies are not tangible but they do need to live somewhere. Just like you would put your physical currency in your wallet, you must have a digital cryptocurrency wallet to store your cryptocurrencies in. You can have as many wallets as you like and you can move your cryptocurrencies between them as you see fit.
Online Cryptocurrency Wallets
Online wallets are free and run in the cloud. This type of wallet is convenient since it is accessible from any computing device and from any location. There are downsides to this type of wallet though. Firstly, you will not have access to your wallets private keys, and secondly, you are at the mercy of a third party and whatever security they have in place to prevent hacking attacks and theft. The largest and most well known cryptocurrency exchanges will be the safest way to go for the latter, but you will never have access to your wallets private keys.
Here are 2 options to get you started, option 1 will give you $10 worth of Bitcoin for free when you purchase $100 worth.
Desktop Cryptocurrency Wallets
Desktop wallets are also free and have high levels of security. They are downloaded and installed on a single computer. Now the burden of security is with you and if your computer is hacked or you get a virus you could lose your funds. If you wanted to move to another computer you can, you are not limited to the single computer. When installing a desktop wallet you will set your password plus be given a 12 word recovery phrase. It is those two items that you can use to install the software on another computer and import your wallet. With this type of wallet you will have access to your private keys.
Mobile Cryptocurrency Wallets
Mobile wallets are also free and are just like desktop wallets only the softare is an app installed on your mobile device. The main difference here is that you can carry your wallet around with you, therfore giving you the option to send and recieve funds anywhere. The burden of security is on you though so walking around all those public wifi signals means you need the appropriate protection in place. This type of wallet also gives you access to your private keys.
Hardware Cryptocurrency Wallets
Hardware wallets are not free and must be purchased. They are just like software wallets only everything is stored offline on a device like a USB. This type of wallet is the safest of them all and has all the benefits of all other types of wallet without the downsides. You can carry it with you, you can transact online, you have maximum security. Your choice in hardware wallet will determine how many currencies your wallet supports and how many web interfaces you will have compatibility with. Essentially, with a hardware wallet you plug in to an internet enabled device, enter a pin, send and then confirm. Read detailed and up to date information on Hardware Wallet options here.
Paper Cryptocurrency Wallets
Paper wallets are the easiest to use and have a high level of security providing you keep you papers safe. A paper wallet is essenitally just your wallet adress along with public and private keys printed on a piece of paper. A paper wallet is fine to store your cryptocurrencies if you don’t need to use them or exchange them. Once you do you will need to transfer from your paper wallet to a software or online wallet to proceed.