After you decide you are willing to work with cryptocurrencies, first think to do is to choose your coin and to create an wallet. When creating a wallet you have few options, like:
Hardware wallet - It is used to store on a hardware (usually USB stick) your Private Keys, as additional protection for finding and make vulnerable this personally important information.
Software wallets - Came as software option that are installed on your PC/mobile device and of course online wallets, where you can register and use as free online service.
Paper wallets - It is a simple paper or software document that contain information about your cryptocurrency address and Private Key which can be accessed with QR code (barcode).
With hardware wallet problems can arise if you damage the hardware itself or if you attach it to the unsecure PC that might contain software which compromise your wallet information.
Software wallets are part of your PC/mobile operating system, so any crush and reinstallation of operating system may damage your wallet as well. On the other hand online wallets are most easier to use, because it is not object of your maintenance and are stored somewhere on other party property. And you have to trust this party, because they store and maintain your wallet account information. But, problem is that when you use your crypto online wallet usually it is not for a day or week, or month. It is for permanent use. That means if you have a significant amount of coins in your online wallet and if you want to check or even transfer some coins from/to your wallet, there may be situation when your online wallet simply don't exist. So, you have all data, like your cryptocurrency address, login information etc, but you can't access your wallet, because that company or webpage don't exist anymore. And you have stuck your coins, without option to use them for your goals. This can be a really big problem that might affect your health or mood as well.
To protect somehow in both failures hardware, or online wallet options you have to use paper wallets as your wallet backup. Not for other but, to be able to have your wallet information, to be able at least transfer your funds from your lost wallet in a new wallet. This is recommendable and must do.
For now there is no option that guarantees safety of your wallet data and that really lowers confidentiality for the crypto idea itself, because only victim is the end crypto wallet user. And that is not cool. Not cool at all. Actually.
