I used LUKS but the HDD was slow and almost dead so I switched to Proton drive, i don't have much storage but I like it
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I have almost this exact setup (paperless-ngx on a LUKS encrypted drive, but mine is running on a VM in Proxmox) and I feel pretty good about the security. That being said, I only have it running on my home network and use a WireGuard VPN if I need to access it remotely. I can’t say I would feel as comfortable if I just had it open to the internet. Like, it’s probably ok, but then you’re relying on Paperless being your first and last line of defense.
Well I also have Authellia 2 factor in front of all of my services that face the internet besides Jellyfin and nextcloud to preserve app compatibility, but yeah that's why I was a bit uneasy about it. Maybe I should just make that container only available over wireguard.
My Paperless-ngx is behind my VPN. My phone connects to my VPN automatically when I disconnect from my home WiFi, so I have continuous access with no actions on my part. I'm hoping that's secure enough for my use. I'm in the same boat as far as personal documents and couldn't bring myself to make it open to the world.