This is something that you will deal with almost the entire project, because there are simply so many Android devices. This resource helped me a lot.
If you have a resource in only one folder, Android will scale it for you. The various folders available are designed so that the developer can provide scalable images with minimal effort. For example, you might want to provide xhdpi in addition to the “standard” mdpi image, so that assets look better on high-resolution devices. The application will work fine (and have scaled images) in all resolutions, even if you provide only one image. However, if you provided xhdpi drawable, then a bit of overhead to scale everything down, and especially for icons, the results may not look very good (or even be recognizable).
I usually provide resources for mdpi and xhdpi, but if the application is often used on low-resolution devices, I also provide ldpi. If possible, I include all four.
Note. The image shown is too large to be included in the user interface resources and is probably best placed in assets and loaded on demand. Even on xhdpi devices it will need to be reduced.
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