This species is hella freakin' adorable. It is native to the Andes Mountains getting the nickname "Old Man of the Andes." It is a high elevation cacti and the natural fiber that grow on it is thought to protect it from extreme sun and extreme temperature fluctuation of its native habitat. The hair is actually modified spines and a product of natural adaption and evolution.
It would do best in a bright light or even some dappled direct indoor sun. We recommend watering roughly every 2 weeks in the spring and summer when the soil is completely dry. Cut back to roughly once a month in colder months as it will go dormant! When repotting, use a coarse cacti soil.