Hand wraps are great for two reasons; they help protect your knuckles and they can keep your gloves clean.
First, While Hand Warps help protect your knuckles, you should never hit a heavy bag with just hand wraps, there is not enough protection for your hands. The reason is that hand wraps keep your knuckles form fracturing on impact. This is because the hands are bound and the impact becomes dispersed across the entire hand instead of being focused on a small point (namely your knuckles). It is important that when beginning training, you need to wrap your hand ups and then put on boxing gloves before hitting a heavy bag.
Second, Hand Wraps are a very absorbing, since they are made of cotton. While you are training your hands will being to sweat. If you are wearing hand wraps, then most of the sweat will get soaked up in the wraps. As a result your gloves will become less slimy and smelly on the inside. Which means that your gloves will stay fresh longer. Just be sure to wash your hand wraps after each use.
One more thing, when you wash your hand wraps be sure to stick the Velcro together, so that it will not ruin your clothes in the washer and dryer. It is also a good idea to stuff them in a mesh bag so that they won't tangle with your other clothes.