Bits are the basic units of information that can have a value of 0 or 1. Bytes are made up of 8 bits and are commonly used to describe the size of digital files and storage capacities. Common units are kilobytes (KB), megabytes (MB), and gigabytes (GB). Data can be stored internally on a computer's hard disk drive or externally on removable media like CDs, DVDs, flash drives, and external hard drives. Online storage services allow users to back up and access their files from any internet-connected device.