You don't need to do either. Simply delete all your personal files (such as documents and pictures) - after you've copied them to your new computer first, obviously!
Next, uninstall any software that you don't want to leave on the laptop (such as banking software or a program that backs up your data to the cloud).
After that, delete all of your browser's bookmarks and clear its cache and cookies. (Instructions available on request; please say which browser you use).
If you've got any other software that you might have 'personalised' in some way, remove that personalisation.
Then ( and here's the important bit!) wipe the free space on the drive, rendering all your deleted files unrecoverable. You've got a choice of two ways of doing that. You can either use the 'cipher' command which is built into Windows or use CCleaner. Instructions here:
https://www.groovypost.com/howto/securely-wipe-free-space-windows-pc/
I most definitely would NOT format the hard drive, as that would leave you needing reinstall Windows (and, once you'd done that, the laptop would probably only work at a crawl for ages while it spent weeks reinstalling all of the Windows updates). Resetting the laptop to its 'out of the box' state would be a lot easier but it might still leave your files accessible by file recovery software (or, depending upon how the reset function works, even still openly accessible).