SonnyNXiong, primarily an external drive is used for both storage and backup. You can use it for both. For a backup, the conventional wisdom by tech experts on backups is known as the 3-2-1 method. Basically you want:
3 copies of any data you don't want to lose
2 different mediums it's stored on (so 2 different drives in your computer, for example)
1 copy kept offsite, to prevent against disaster.
If you want it for storage of data or games it will work as well.