Struggling with Intrusive Thoughts and Panic Attacks

What is the best method for handling your thoughts? I'm struggling a lot because I've seen some people say you should accept the thoughts and believe them without getting scared of them. I've seen others say it's better to find distraction strategies. But apparently distracting yourself gives more power to the thoughts. I'm also having trouble getting used to some advice related to sleep and nighttime (like if you think something is necessary for you to sleep, like a stuffed animal, you should get rid of it). I don't feel mentally prepared to do any extreme changes and I have been going through nonstop panic all day, to the point of being physically sick and feeling like all my hope is lost. I feel like I'm losing my mind... what do I do?