Hey Crapzilla, welcome aboard. I fish only with jigs. Both ways you mentioned will work. You can cast out, let it sink some and retrieve. You can drop straight down and then reel it up. You can cast it out , let it sink to the bottom and then hop it up and down as you bring it in. You can drop it straight down to a certain depth and then move it up and down with your rod. Sometimes you can even drop it straight down to a depth, leave it there and do nothing. The main thing to remember is that you have to try different things until you find out what the fish wants.
As for what type of jig the choice is up to you. I use solid plastic jig bodies that I make on an unpainted jig. Some people like plastic and some like hair jigs. The best thing is to try both and see which one you prefer.
That is the advice that I can give and I am sure that you will get advice from the other fine folks here. Then you can try it all and see what works for you. I hope I have been some help.