The reason people use paper wallet is that they do not need to worry about a piece of hardware or a piece of software failing ,all they need to take care of is a piece of paper. you can store any amount of bit coin on paper wallet, its the safest way to store your bitcoin. it is sometimes not safe to store cryptocurrencies online or in exchange. After all,they are often haked.sometimes even your live wallet on your computer has its risks.
When you own your paper wallet ,the address that holds your bit coin is not yet connected to a block chain. So your wallet is not yet active until you enter your information online and  your wallet is connected to a live block chain.