
Though there are very advanced settings available in Firefox which are best-suited for tech-savvy users, we'll skip them for now and will only focus on the easy-to-configure tasks. So, here we go!
Configure Important Browser Settings
We'll start with the configuration of native browser settings. Although most of the settings are good to go, there are a few that needs our attention.The first thing you need to do is to configure the default download location of the files where they should get saved. I prefer desktop as my default download location because it enables me to quickly see what I've downloaded. But, you can of course choose your preferred location. Here's how we do it.

Another important setting worth considering is the home page tab which is loaded as you open Firefox. And, the new tab contents. Both these settings are optional to configure, but I'll highly recommend configuring them.

I want my Gmail inbox to be loaded every time I open the Firefox browser. For that, I've used the Custom URLs... option and have provided the URL I want for the homepage.
Similarly, I've chosen the Blank Page option for the new tabs. This ensures that whenever I open a new tab, it's completely blank instead of being populated with stuff like history or bookmarks.
The next setting is related to the selection of the default search engine. By default, Google is the default search engine of Firefox. But, if you want, you can change it.

If your preferred search engine is not available in the dropdown menu, you can easily add it by first opening the search engine's home page and then right-click in the address bar.

The settings we discuss next are of prime importance as they are related to privacy and security. The default standard tracking protection is good enough for most users and is by default applied by Firefox itself. So, we can safely ignore it and let it be in its default state.
Now, go to Settings → Privacy & Security → History section and check the Clear history when Firefox closes option. Next, click the Settings... button on the right side to open the dialogue box.

This ensures traces of your web browsing history are not left behind whenever the web browser is closed and restarted again.
The next important setting that I generally keep on but is entirely optional for you is the autoplay of audio and video on the websites. It's generally an annoying experience for most users. Isn't it?

Choose the Block Audio and Video option from the dropdown menu. And, that's it! From now on, the autoplay of video and audio will be blocked by default on all websites.
The next section is about diagnostic data collection by Firefox. If you are concerned about your privacy and feel uncomfortable sharing usage data, you can uncheck all the options in this section.
Install Vital and Useful Addons
Now that we've configured some of the important browser settings, it's time to install some vital addons to enhance our web browsing experience. Though you're of course free to use addons of your choice, the ones mentioned below are what I recommend for everyone.So, let's get started!
- Login management - Each one of us manages multiple if not dozens of accounts of various tools and services while using the internet. Managing passwords and logging into each one of them is kind of a headache. I use Bitwarden for the same. 1Password, Dashlane, and LastPass are other popular options to choose from.
- Privacy and security - To create isolated workspaces which not only enable you to open multiple accounts of the same service but also helps you in keeping them separate from each other, I'll recommend installing Firefox Multi-Account Containers addon.
- Spell-check and grammar - Without any question, Grammarly is the best one out there to spell-check and correct grammar while working on the web. If you're on a tight budget, another one worth considering is the LanguageTool addon.
I've not touched the theme customization feature because it's more of a personal choice than a generic useful feature required for everyone. If you need one, do spend some time finding your favorite theme to make your browsing experience, a little bit better.