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It is risky to upgrade a live site without testing the upgrade process first. So before upgrading the live site you need to set up a test site which is as close as possible to the configuration of your live site, then test the upgrade on that. When you are happy with the process you can apply it to the live site (having taken a fresh backup of the live site first, of course).
Before you actually upgrade, you really should make a backup of your site. Backup your existing Joomla site files and store all the files and database in case something gets messed up, you wont have any problem reverting back.
All upgrades should be first tested on a copy of your site before being applied to a live site.
Step 3: Copy the upgrade files
There are different ways of installing a package file depending on your particular circumstances. If you have difficulty with one of these methods, then simply try another.
Alternative 3: If your hosting provider gives you access to your site via some sort of web control panel like CPanel or Plesk, you can use the control panel file manager to upload the package, then use a terminal session (which might also be available via the control panel) to unpack the package file and overwrite all changed files on the server.
Step 4: Check your live site to make sure it is working correctly
Don't assume that the upgrade will work flawlessly just because the test upgrade worked. Check to make sure that nothing untoward has happened. It could be that differences between the live site and test site platforms will bring out a problem that you did not notice during testing. If you find a problem and it cannot be resolved quickly you might have to rollback the upgrade using the backup copy you created in step 2.