Time Capsule Newbie Questions

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I just setup my first Mac - a Macbook Pro refurbished 13" mid 2012 base model. Only Mac experience I have had is about a year with my iPad. My old Toshiba laptop died so I wanted to replace. Even tho my usage is so simple the Ipad can certainly handle it, I just like a computer and then use the Ipad for reading books. I am of the older generation and am so proud that I was able to get this MBP setup, connected to my internet and get my HP printer wirelessly connected vs the ethernet that I had been using. Just went perfect.

So now I see that I need a backup device and am sorta looking at a Time Capsule. In my research tho on how to setup I cannot see that I can easily do that without help. And so am wondering what the TC will do for me as far as improving my network capabilities. I dont know much but I know that I have a 5 yo Westell 7500 router that has b,g mode so am seeing that the TC would offer me n mode. But will I gain anything on the network capability if things sorta kinda seem to be working ok right now. The only actual problem I ever have is I cant watch Youtube videos on my Ipad without the spinning wheel every 2 seconds.

My biggest concern in setting up the TC with my router is that I dont understand what password I am supposed to be using in setup thru airport utility. I can just see loosing all network access thru inputting something wrong and not be able to get back to my original ISP router connection to the internet.

I know just a lot of rambling ignorance but any would most appreciate any advice or answer to the question above - do I even need a TC vs just a plain old external drive.
 

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