Honestly you can do either.

LXC

• shares host kernel (theoretically lighter weight)

• less isolation from host (less secure)

• devices are passed via device files

• less flexible due to dependence on host

• no live transfers

• filesystem shared with host

virtualization

• has own kernel and filesystem

• supports live transfers

• hardware pass though is done at the device level

• more flexible due to independent kernel

• more overhead