Set up as new iPhone v.restore from backup?

I just got an iPhone 5 from sprint and I would like to put all of my music from iTunes on it. I have never had an iPhone but I do have an iTouch with a bunch of music on it. To insure that I don't lose any music, do I choose "Set up as new iPhone" or "restore from backup?" The backup is my iTouch.

Set up as new.
pretty sure thats better.