How to store additional data like phone, location, and address while signing up.

do i have to use User Preference,

If its just small amount of information, then yes use the User Preference.
But the User Preference has limit of 64KB for the total size, so if it bigger then that creating anouthr collection would be the best

yes its a small amount of data like three or four field with 50 words each

So User Preference well suit you

as i go through doc but not found how to implement.

To get the preference
https://appwrite.io/docs/client/account?sdk=web-default#accountGetPrefs

To update
https://appwrite.io/docs/client/account?sdk=web-default#accountUpdatePrefs

So you would do something like this

  const prefs = await account.getPrefs();

  prefs['phone'] = '1234';

  await account.updatePrefs(prefs);

but how to create while sign up

For that create a function the listen to the event of user creation and then do something like this

users.updatePrefs('[USER_ID]', {});