Binders
Many collectors keep their patches in binders. These collectors use plastic sleeves designed for baseball card or coin collections and place patches in them instead. The advantage of displaying patches in binders is that it enables a more historically rigorous approach: you can organize your patches by war, battle, army, country--whatever you like. This is a particularly good option for those with large collections.
The disadvantage is that binders aren't always on display--you have to take the binders out if you want to look at them or show them to somebody else.
Display Box
An attractive option for those who want to show their collection off is to purchase a box with a glass top. You can attractively arrange your patches within the display box or case, and set them out for frequent viewing.
Boxes take up more space than binders do, so they're not ideal as the sole display mode for collectors who've amassed hundreds of patches. One option is to have a display box for your most prized patches, and keep others within binders. This way, you can rotate the collection in the display box as well.
A small display box with one or two patches, placed on a bookshelf, makes an attractive home decor idea.
Website
Display-minded collectors may want to consider developing a website. Though a website requires a lot of work to set up initially, websites make your collection available to the public, there are no limits on how many patches you can post to the site and you can organize them as creatively as you wish.
You'll still have to keep the physical patches somewhere, but websites are a great way to share your collection with other enthusiasts living far away as well as family and friends.