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FAT32 > NTFS conversion - Comparison help

Here is my situation: I have a FAT32 HD with all my system files in it and it's the C:\ drive. My goal is to convert the FAT32 HD to NTFS HD. My two questions are:

1.) should I just convert it on the spot and get on with life?

OR

2.) make a HD FAT32 image backup copy first onto another HD workstation (which is NTFS) and then reformat the original HD to NTFS and finally restore the HD FAT32 image backup copy to the newly NTFS-converted HD?

I'm considering the second option because I assume it will give me better performance than the first option. Any suggestions are appreciated. Thank you.
 
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