The hardware wallet is a compact physical device that often resembles that of a USB stick. Hardware wallets are specially designed to store cryptocurrencies offline. Basically, hardware wallets create an isolated space that allows the user to store their public and private keys.
In Layman's terms, the hardware wallet is not used to store the currency, but rather provides an access point for them. Hardware wallets are often referred to as cold wallets or cold storage. The usage of hardware wallets directly contradicts that of hot wallets.
The hardware wallets are advantageous for offering native storage of private keys, that are less subjected to malicious attacks. To access a hardware wallet, one requires a secure pin, along with a seed phrase. The only catch is, that you need to physically protect the wallet at all costs.