Going through the comments and answers I came to conclution that-
At first we have to install virtual environment to isolate my project settings from system’s settings. Here settings refer to Various packages with different versions. This isolation helps to prevent any conflict between systems setting and projects settings. Also there can be multiple projects.
Now secondly we need to install virtualenvwrapper because there may be many virtualenvs in my PC ie. one with python3 other with python2 as required in different projects, So we need a wrapper where we can put all our envs and manage them.(Installing virtualenvwrapper is optional, virtualenv will provide all the necessary commands to us).
At last as you have virtualenv installed you can now activate the virtualenv and then install Django, pip will automatically link Django with activated env. You can put your project in any directory.
solved Why we need to install virtualenv and virtualenvwrapper