1) Don't log in to google, block ads. Data collected by google is lower value, resulting in less targeted internet-wide marketing, including on youtube itself when you clear your browsing session.
2) Log in. Lose time to ads. Trying to avoid this may put your entire google account at risk. Also, you gain highly targeted marketing thanks to higher quality data collection. Youtube's viewing suggestions are targeted, limiting discovery, and may become highly pigeonholed over time.
3) Pay for Premium. All the same as 2) but with less ads.
As a consumer, logging out of google and blocking youtube ads has been made by google a better experience than their own premium product. Only the producers of the majority of youtube's product are required to consume what google is doing.