I'm playing Nioh as well. One would figure a fella like me, with this username, would do so I'm at the end of the 2nd mission, fighting the boss of the caves, and picked Kato the fire-wolf as my starter. When I get more spirits, I plan to use Gyokuro the moon-hare. I'm using spear and katana pretty evenly, and am Lv 25 with points mostly in body, heart, and spirit with a little dexterity for ninjitsu. A few well placed makibishi (caltrops) can help surprisingly well for earthbound threats. I loved cleaning the oni out of that lower cave before Hino-enma. Just need to learn how to beat her. I'm wearing the full archer gear and a paralysis omamori, so her paralysis won't be that big an issue. Just need to find her telegraphs and watch her speed.
Bookmarks