Cryptocurrency holders have two options for storing their digital money: either on hardware wallets or on internet exchanges like Quidax and PayPal. Examples of businesses that sell these little gadgets to safely store cryptocurrency tokens include Trezor and Ledger. These wallets can be "hot," in which case, users have easy access to their crypto tokens and are connected to the Internet, or "cold," in which case the crypto tokens are encrypted in wallets with private keys whose passwords are not kept on computers that are connected to the Internet.
Exchanges store users' cryptocurrencies in eith hot wallets or cold wallets. While hot wallets are cheaper to maintain, and are prone to hacking since it uses internet structure for storage, cold wallets costs a lot more to maintain and is the safest form of storage since hackers cannot have access to it. Quidax for example uses a cold wallet form of storage. Cold storage is not cost effective for individuals willing to store small amounts of crypto, since they will have to lay gas fee to move it from one wallet to the other. Storing on exchanges however makes ot easier for users to exchange their crypto easily.