Welcome to YorkieTalk
You will need a crate/cage if you want to crate train. It should be a very small one since usually the rule is they should be able to lay down and turn around and that's it.
You can use pee pads if you want. Do you plan on training the puppy to go outside or use pads? If you want it to eventually go outside the pee pads could slow down the process. On the other hand, it is cold out now and the pup probably doesn't have all of its shots, so it might be better to keep it inside. I think crate training is generally used to train them to go outside.
What is your puppy's name?