Proxmox snapshot best practices boil down to one thing: snapshots are for quick rollbacks, not real backups. Use them before a risky change, and keep a separate backup for disaster recovery.

When to snapshot
Snapshots shine when you’re about to update a package, change a config, or try something that might break the VM. They capture the disk and RAM state (if you want) so you can revert in seconds. But they live on the same storage as the VM — if that disk dies, your snapshot dies with it. That’s why they’re not a backup.
VM vs LXC
VMs support snapshots on most storage types: LVM-thin, ZFS, Ceph, even qcow2 files. LXC containers are trickier. On ZFS, snapshots work great. On LVM-thin, they work but with caveats. On directory storage, you’re out of luck unless you use a filesystem that supports snapshots underneath. Check your storage type before you rely on snapshots for containers.
Storage gotchas
If you’re on LVM-thin, snapshots are thin-provisioned and share space with the original volume. That means a snapshot can grow and eat your free space. ZFS snapshots are nearly free until data changes, but they still count against your pool quota. And if you ever replace a storage device and lose snapshot ability, check the storage type — that’s usually the culprit.

Test your restores
Don’t trust a snapshot you haven’t restored. Spin up a test VM, take a snapshot, make a mess, then roll back. If it doesn’t work, you’ve learned something before you needed it. I’d do this on a regular basis, maybe quarterly, just to be sure the process still works after updates.
Snapshot vs backup
Backups are copies on separate storage, often compressed and deduplicated with Proxmox Backup Server. Snapshots are point-in-time states on the same disk. Use snapshots for fast, frequent rollbacks. Use backups for everything else. And if you’re storing backups on a network share, make sure it’s mounted right — NFS options matter.
My take
Keep snapshots short-lived. Delete them after you’ve confirmed the change is stable. A pile of old snapshots slows down storage operations and can fill your disk. I’d set a reminder to prune them weekly if you’re forgetful like me.