While developing applications in the C# language, you could use various data types, which are divided into two groups, namely value types and reference types. The difference between them is very simple—a variable of a value type directly contains data, while a variable of a reference type just stores a reference to data, as shown as follows:

As you can see, a Value type stores its actual Value directly in the Stack memory, while a Reference type only stores a Reference here. The actual value is located in the Heap memory. Therefore, it is also possible to have two or more variables of a reference type that reference exactly the same value.
Of course, a difference between value and reference types is very important while programming and you should know which types belong to the groups mentioned. Otherwise, you could make mistakes in the code that could be quite difficult to find. For instance, you should remember to take care while updating the data of a reference type, because the change could also be reflected in other variables that are referencing the same object. Moreover, you should be careful while comparing two objects with the equals (=) operator, because you could compare the reference, not the data itself, in the case of two instances of a reference type.