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It’s all good and well having a USB drive that you can put files on, even encrypt stuff. But you can do so much more. Due to the nature of portable drives, they’re commonly used in conjunction with systems that aren’t your primary computer. In some cases, these may even be untrusted machines, or machines with reduced functionality. Portable applications are apps that have been modified to run off of portable drives, without the need for installation, and most do not leave any trace of the execution on the host machine.
But as I said before the required resourses of this sort of security suffers from exponential increase for even a moderate increase of security so your first steps are to analyse your situation not just technically but in terms of lock usb loss if the technical solutions fail. You can also combine it with separately encrypted files or folders ‘somewhere else’, not in the live system, but for example in another pendrive or in a ‘data’ partition in the same pendrive.