You can store cryptocurrencies both online and offline. Offline storage options include cold storage wallets and paper wallets. Nowadays, people rarely use paper wallets. You should get a solid and secure cold wallet to keep your cryptocurrencies offline.
A crypto wallet is a place where you can safely store your cryptocurrencies. There are many different types of crypto wallets, but the most popular are hosted wallets, non-custodial wallets, and hardware wallets. Just as there are many ways to store cash (in a bank account, in a safe, under the bed), there are many ways to store cryptocurrency. Like other wallets, as long as you keep your private key safe, you won't lose your crypto assets, even if you lose your wallet.
You can simplify things with a hosted wallet, have full control of your cryptocurrencies with a non-custodial wallet, take extra precautions with a hardware wallet, or even have several types of cryptocurrency wallets: you choose. Keep in mind that there is a difference between storing your cryptocurrency on the Coinbase exchange, which has custody, and in the wallet, which is not. A good rule of thumb is to always transfer a very small amount of cryptocurrency from the exchange where you bought them, confirm that they have successfully arrived in your wallet, and then transfer the rest. Crypto wallets can take the form of external hardware or software devices that run on your mobile device or computer.
A hardware wallet is a physical device, about the size of a USB stick, that stores the private keys of your cryptocurrencies without an Internet connection. A paper wallet is a printed copy of public and private keys, usually in the form of a string of characters and scannable QR codes. The main difference between the escrow wallets and the wallets mentioned above is that users no longer have full control of their tokens, and the private keys needed to sign transactions are only held by the exchange. Most people don't use hardware wallets because of their greater complexity and cost, but they have some advantages, for example, they can protect your cryptocurrencies even if your computer is hacked.
While you can choose to leave it on a cryptocurrency exchange in a escrow wallet (meaning that you are not the full owner of the asset, but that you trust that the company will keep it for you), the best option is to transfer it to a wallet that you own. You have several different options for storing cryptocurrency, including hardware devices, applications, and even a simple piece of paper. Mycelium has been around since the beginning of the cryptocurrency era, and the Mycelium wallet is one of the oldest and best-known bitcoin wallets. While cryptocurrencies can technically be stored directly on an exchange, it's not advisable to do so unless it's in small amounts or with the intention of trading frequently.
In the event of a computer failure, a history of regular backups may be the only way to recover the currency in the digital wallet. I recommend that you buy a hardware wallet for most of your cryptocurrency holdings and that you download a dynamic cryptocurrency wallet for easy access.