For small amounts of money, software wallets are enough.

But all software has bugs, and bugs can be exploited by hackers to take your private keys. That's why for large sums of #Bitcoin, it is best to have a hardware wallet that is offline and only connects to your phone when you need to sign off on a send.

A rule of thumb I like to use is to treat a software wallet as a physical wallet in your pocket and your hardware wallet as a safe. If the BTC dollar equivalent is more than you feel comfortable keeping in the wallet in your pocket, then keep it in the safe. Then keep a small amount of Bitcoin in a software wallet just as you would hold a small amount of cash in your wallet.