Can I back up data with a USB stick 32gb?

Hello, hope I have put this on the right board. First time on here and I am reading thru the books Windows 8 in easy steps and easy windows 8 as a guide. I want to back up Windows 8 but in neither book do they say that you can use a USB stick or CDs only an external hard drive or a network. I've got an external hard drive that backs up my desktop (XP) can I use this as well for Windows 8 or should I just get another external hard drive solely for Windows 8 or can I use the USB Stick 32gb that I already have?

Speaking of built-in tools:
File history - yes
Legacy backup - no

Note that you can't use both, as they are mutually exclusive by design.

32GB may not be enough for file history, if you have a lot of files and update them often, because files aren't compressed. I'd say an external hard drive is a better option.

Thanks Vadikan, I'll just get another external hard drive.