Swaddling your baby with a blanket can make them feel safe and secure. Hospitals say that swaddling is necessary for your baby to stay warm in the first few days, maybe even weeks, from when they are born before their own internal thermostat begins to work. If done right this can help your baby fall asleep and stay asleep for longer times. Swaddling is most effective when it is wrapped around your baby tight enough so it will not unwrap, but also loose enough that the baby still has room to move their limbs.
If you have swaddled your baby with a blanket that is too tight around the babies legs it can cause loosened joints and can lead to hip dysplasia. If there is a family history of hip displacement, be a bit more cautious about how tight the blanket is around the babies legs and hips as it may need to be looser than normal. When you have swaddled your baby for the night, make sure the baby will be unable to roll onto its side by using a big enough blanket that will create more of a "nest" for the baby to sleep. This is crucial because if the baby ends up laying on its side for the night, then it can lead to the baby having SIDS, or Sudden Infant Death Syndrome.
When you do put your swaddled baby down to sleep, it is safer to keep them in their own crib rather than to keep them in the same bed as yourself. This helps your baby learn to keep itself on its back for when it does not have the safety of the blanket keeping them from rolling over.
Wrapping up your baby in a nice soft blanket is a very good thing to do in their first few weeks but just make sure they are free to move around a bit. There should be no problems with your child as long as you keep a watchful eye on them especially when they are sleeping.