Online Wallet: Cryptocurrency keys are stored online and accessible from anywhere using exchange services such as Coinbase or Circle. Blockchain applications, for example, store and encrypt a trader's Bitcoin keys, allowing the trader to pay using the trader's mobile device.
Hardware Wallets: A trader can use a USB device designed to store Bitcoin and a trader's private address keys electronically.

Online and hardware wallets are tools used to store and manage cryptocurrencies securely.

Online wallets are digital applications or platforms accessible via the internet, such as mobile apps, web interfaces, or desktop software. They are convenient for frequent transactions, offering easy access and integration with exchanges. However, being internet-connected, they are more vulnerable to hacking and cyberattacks.

Hardware wallets, on the other hand, are physical devices designed to store cryptocurrency private keys offline. These wallets provide enhanced security by keeping your keys isolated from online threats. Common examples include USB-like devices like Ledger or Trezor. While less convenient for frequent trading, they are ideal for long-term storage or large holdings. Combining both types can balance convenience and security in crypto management.