Instance Stores and Amazon Elastic Block Store (Amazon EBS)

Resource

https://aws.amazon.com/premiumsupport/knowledge-center/instance-store-vs-ebs/

Instance Stores

Store Data for Temporary
Data removed when there is

system stops
system terminated
hardware failure occurs.

Amazon Elastic Block Store (Amazon EBS)

Saving data for the long time
EBS provides the encryption
if system stops/terminated, no data loss
Backup/Restore Facility Availble with Snapshots (convert save state to image)
Attached/Detach Facility for the instance