Super confused on withdrawing btc

I have been googling for 30 minutes and still not arrived at a answer i can trust. So i have btc on my exchange and want to withdraw it to my wallet.

Exchange gives the btc and erc20 network options.

Wallet gives the segwit and legacy address options.

I saw that erc20 network was 10x cheaper, so want to use that. The question is which address should i use? Also some post i read said that erc20 is a wrapped token and not to use it??

Im a software dev and even this is mighty confusing guys