Attributes are used to offer available variations of the same product that your customers can choose from when adding to cart. For example for a technology store they could be the colors of a device: White, Black, Red, etc.. For a clothing store it could be colors and/or sizes of a garment (S, M, L..).
Categorize your attributes in the way that best fits your product types and then in the configuration of each product create the combinations that apply through variations.
Note: If your products do not have variations or are digital you do not need to create attributes.