I think it depends on your style, mostly.
Dynamic Characters
The problem with fully dynamic characters is that, at a point, they no longer make sense because their experiences are too wild and unrealistic for them to truly be appreciated. Furthermore, people with long-lived dynamic characters tend to have said character become more powerful as time progresses. This can make such a character an excuse to godmod and otherwise be absolutely ridiculous. That being said, I've also seen the polar opposite. I think the ability to play a dynamic character is a skill, and like many skills, you learn it by doing it.
My first dynamic character was terrible. Rather than being interesting, he was very sloppy and very unrealistic. He had a wide array of super-powers and had been in multiple world-ending cataclysms and was in a group of similarly dynamic characters that, when presented with the medieval equivalent of an atomic bomb, would moan arrogantly with the sentiment of, "Oh, dear Lord, not again."
I think the chief skill of playing a dynamic character is the ability to know what to keep and know what to throw away. You can't just have a dynamic character constantly dynamic. Just because you've roleplayed them saving the world four times doesn't mean that your new rendition of the character needs to have had the same experiences. Rather, they can have the same personality and well-rounded appeal and have simply had a similar, but less "epic" experience in their history.
I also think an important skill of playing a dynamic character is the ability to age them. Physically. A lot of characters are teenagers who have been revived from the dead 1,235 times, saved the world 323 times, attained a power level over 9,000, and can cast "Create Supermassive Black Hole" at will. I think you get the point. Would it kill you to play that character as if they were... I dunno... forty? Most of my heavily dynamic characters get old the more experience they attain, and it makes the character believable.
Continuing, I think another big trick of playing a dynamic character is knowing the changes going on with them and only displaying them subtly. A dynamic character doesn't just undergo a binary shift with discrete state. They don't go from saving puppies to building the "Mark 9 Puppy Rocket Launcher" overnight. And I see this a lot in dynamic characters, surprisingly. They never hint towards their personality changes. There's never an intermediate period of time where they spot an injured puppy and shrug and walk away. They just take that leap all in one go.
And finally, the other thing I see happen a lot in dynamic characters is a situation where only beneficial events are considered. For example, after the battle your character has with the main villain, do you take note that they now have the "1337 Sword of Saint McPwn" or do you take note that their foot was absolutely crushed during the fight, meaning that after recovery they might never walk as well as they did before? A lot of people fake taking notice of negative occurrences towards their characters, but they don't really pay attention to what they don't want to add. They add the "negative" stuff that "looks cool." Most popular I notice are mental conditions, which are rarely roleplayed very well in such characters.
Static Characters
They can be good or they can be bad. I think everyone starts out playing static characters, really. I've never seen anyone genuinely start out playing a dynamic character. Static characters are relatively easy to play, and I'd say the only major hurdle is making them interesting. Making a static character is tougher than making a dynamic character, because you need to make them so detailed that they can compete with dynamic characters in terms of how interesting they are. Again, this is a skill, but there are so many ways you can do this that I'm not qualified to even bother trying to hash them out.
Anyway, I don't really think there's a best way. I play dynamic characters, but I've seen plenty of great static characters. Do what suits you, in my opinion.
Tip jar: the author of this post has received
0.00 INK
in return for their work.