External hard drives offer portability and convenience, making them ideal for users who need to transport data easily. They typically connect via USB or Firewire, with Firewire providing faster data transfer rates compared to USB 2.0. However, external drives can be slower in access speed and require their own power source, which can be a drawback. In contrast, internal hard drives are generally cheaper and provide more storage capacity, but they require available space and connections within the computer. Price differences are significant, with internal drives offering better value per gigabyte. Users should consider their specific needs, such as portability versus cost-effectiveness, when deciding between external and internal hard drives.