A hardware wallet is a special type of bitcoin wallet which stores the user's private keys in a secure hardware device.
They have major advantages over standard software wallets:
- Private keys are often stored in a protected area of a microcontroller, and cannot be transferred out of the device in plaintext.
- Immune to computer viruses that steal from software wallets.
- Can be used securely and interactively.
- Easy to use.

A paper wallet, is a piece of paper where you write your private keys, which must be imported, allowing a user to validate the entire operation.
- Immune to computer viruses that steal from software wallets.
- Harder to use.