I do both, but I am a better finger picker than flat picker (spent a lot more time learning and practicing). I don't think one or the other is more advanced or better. They are both fun as heck, and hybrid picking is something I am just now picking up. Very cool.
One thing you can do while learning fingerpicking is to just work on patterns, such as the numerous variations of Travis Picking, and just start ripping through chord changes (to work on speed and alternate bass lines) or chord progressions of songs you already know. You can do the same thing with arpeggio picking or even blend the two styles.
Have fun and good luck!
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