When it is about a toddler’s sleep, safety should be our first concern. The safest place for a 1-2 years old age child is a firm mattress in his crib. Even floor beds are fine whilst ensuring the safety of the surroundings.
It should be ensured that toddlers sleep when not surrounded by suffocation hazards like loose toys, stuffed animals, and sheets. But as they grow older, it is alright to put sheets/ blankets and a small soft toy to comfort your child. In many countries, especially India, co-sleeping is also popular and relatively safe if precautions are taken beforehand.