Cryptocurrency wallet differs in type, functionality and holds different levels of security.
Software wallets are installed on your personal computer and you use them like you would use a traditional installable software. Hardware wallets usually come in the form of a USB that holds your private keys.
Once you plug it into your device, you’re able to safely sign transactions. Lastly, paper wallets are exactly what it says on the tin: printed pieces of paper that hold your private keys and are stored away in a safety/deposit box.