We talked about benefits of cache plugins before now we are going to talk about proper setup of W3 Total Cache plugin of briefly W3TC.
2- General Settings
3- Page Cache
5- Database Cache
No need for changing default settings.
6- Object Cache
No need for changing default settings. It has an option, Enable caching for wp-admin requests, this might cause some minor errors in your admin area.
If you are using CDN, do the setups here. It even gives you control of CDN to a degree.
Here you can find most popular extensions for W3TC plugin. For example if you are using CloudFlare, Yoast or AMP feature on your website, you can activate corresponding extension here.