Best way for read and write a text file

I am using the latest version of Lazarus IDE and I have a Memo1 on my TForm1. I have to load a text file in Memo1 and then edit every line of the Memo (I use Memo1.Lines.Strings[i] := ...). At the end I must save the edited memo at a particular path.

Question: I am looking for the faster way between:

1. Load the whole text inside the memo, edit its content and save into a new file (load all -> edit all -> write all)
2. Do a while loop (until the end of my *.txt file) that reads the file line by line, edit the content and save it in the new file. (load line -> edit -> write | load -> edit -> write | load line -> edit -> write | ...)

I am pretty new with Delphi developing, and I have also read some pages about TStringLists. My text file is going to have a lot of lines (It could have 5000+ lines) and I don't want that my program loses performance.

Any suggestion? Should I use TStringList or one of the two methods I listed before?