iCloud is a file syncing service and not a backup service. You should buy a decent external drive for regular system backups since you never know when the laptop may fail unexpectedly or when you may accidentally delete a very important file. Plus SSDs can fail at any time without any warning signs. Data recovery on an SSD is nearly impossible even when trying to recover a deleted file from a working drive.
Just about any external hard drive will do in a pinch to back up the system. If you get the WD drive, just do not use the included WD software as it is not needed. For any external drive use macOS Disk Utility to erase the external drive as GUID partition and MacOS Extended (Journaled) before using the external drive on a Mac. If you have trouble erasing the drive, then click "View" within Disk Utility and select "Show all devices" so that the physical drive appears in the left pane of Disk Utility. You shouldn't have any problems erasing a drive when you select the whole physical drive.
The Mercury Elite Pro drives from OWC are very good external drives. Plus the enclosure is easily opened if you ever need to upgrade or replace the actual hard drive found within the enclosure. A lot of portable external drives now come with non-detachable USB cables. You should avoid these drives at all cost because if the cable becomes damaged, then you cannot access the data on the drive. Always get a portable drive with a removable USB cable.