Storing Bitcoin & Crypto
Exchanges are businesses that buy and sell crypto currencies. Opening an account usually involves providing proof of your identity. Most of the big exchanges are safe places to buy & sell crypto, and can transfer your native fiat currency from and to your bank account. Exchanges have a drawback in that there are plenty of people trying to hack them, as they have a lot of money. As such, keeping money there increases your risk.
Hot wallets are places to hold your crypto currency. They allow you to receive money, send money, and view your current balances. Usually installed on your computer, mobile phone, or a tablet, they are secure against hacking, but you have to be cautious that your devide is not stolen or hacked.
Paper wallets are a type of cold wallet. Printed out on paper they have your public address and your private key. These are some of the most secure forms of storage, as long as the paper is not lost or stolen.
There are also USB based cold wallets that are very secure.
There are many hot wallets available. My preference is Mycelium. It is available on Android and iPhone, and can hold Bitcoin and Ether.
Here is a simple 10 minute video on Bitcoin Basics: How To Set Up Mycelium Wallet & Live Transaction Demo.
Here is how to move money from a paper wallet (also called "sweeping") into Mycelium, or to send it to someone else - Sweeping a Bitcoin Paper Wallet with Mycelium Phone Wallet app.