Wallets make everything easier. People can hold funds on their phone, desktop, or offline completely.
Similar to a bank account, wallets allow users to send funds to another account instantaneously, locally and internationally. Mobile wallets (Jaxx, Coinbase) are even more useful for those who want to store their Ether on the go. Mobile devices allow for trade or payments of services. Developers also have the choice of Full Node (Geth, Ethereum Mist) if they prefer working on the desktop to create Dapps.
Wallets have a great advantage over bank accounts since the majority of Ethereum wallets do not require personal information. You can either create your own (Geth) or download an existing one (Ethereum Mist, Jaxx, and MyEtherWallet). User privacy is fully instated. Personal information will not be shared, only wallet addresses will be accessible.
By choosing an Independent wallet (Ledger, MyEtherWallet, Ethereum Mist, Geth), each user is in charge of their money. Third parties will not restrict or shut a wallet down. A common decision among Ethereum users is to either choose a hot or cold wallet. A hot wallet (Jaxx, Coinbase) is an active wallet that is open and accessible. Handlers can easily send funds since it is connected through the virtual world. Hot wallets are used mostly by those who wish to trade or buy Ether more frequently.
For those who prefer to store Ether, a cold wallet is the best option. Similar to the security a safety deposit box offers, money sent to a paper wallet (MyEtherWallet) or cold hardware (Ledger) stores Ether offline preventing hackers from stealing your funds. Exchanges offer built-in wallets, but it is recommended to use another wallet.
For more information about Ethereum Wallets, check out our Wallet page.