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It is important to note that Windows cannot boot using a USB connected drive, this is a restriction that is imposed by Windows.
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You can clone to a drive installed in your computer or to a drive that is attached using a USB caddy.
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Cloning your drive will create a bootable copy of the source drive with the state it was in at the time the clone took place. This is useful if you are upgrading to a larger drive and can often be faster than imaging the source drive and restoring to the destination drive.
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Using Macrium Reflect, it is possible to clone an entire drive or specific partitions on a drive.
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