In the Utilities/Duplicates album, Photos recognizes both Exact Duplicates and Similar Duplicates. Similars may have different resolutions, different sizes, different metadata-- but they look pretty much the same. Sometimes, though, Similar duplicates are really different pictures, like this pair:

and I want to keep both! So with Similars, you need to be very very careful.
Even with Exact Duplicates, the metadata may be different, so I usually copy the Keywords back and forth, and I try to give both the same Caption information and same Titles, so the one that's chosen will have all the all the information from both.
With Exact Duplicates (after careful examination,) Merge is a good choice-- it puts the chosen one in all the albums that either of them were in. That's a real hassle with duplicates-- if you have one picture of Aunt Ethel in the Grand Canyon album, and a duplicate in the Oct 2018 album, then deleting one of the duplicates removes it from an album that should have her picture. Merge will remove one and fill the empty spots with the chosen copy.
So, I think the answer to your question, "do I have to be cautious?" is YES, you sure do!
There is some salvation, though, in that if you delete the wrong one, or if Merge deletes the wrong one, the loser goes in Recently Deleted, and you have 30 days to change your mind.