Your smoker looks a lot like the Weber smokey mountain aka WSM aka bullet smoker. Youtube is your friend.
There are basically 2 different ways to burn your charcoal.
1. Minion method. Fill the bottom with charcoal and light a chimney full and dump them in. The lit coals will ignite the rest. Adjust your air vents as needed.
2. Snake method. Line up your coal around the edge of the cooker but don't let the ends touch. Light one end for a long burn (8hrs) or both ends if you want more heat. I use this one the most. Put a brick or 2 at 6 o clock and fill the rest with charcoal. On my WSM with 2 bottom vents open about 1/4" it will burn a full 8hrs.
Add wood chunks on top of your charcoal, any fruit wood like apple, pear, cherry will give a nice mild taste. Oak and hickory will give a stronger smoke flavor. Ive tried it all, even maple. I prefer hickory or apple. Just a few small pieces are needed. You want a light blue smoke coming out of the top vent, too much smoke will make the meat taste kind of bitter.
Using the water pan is optional, sometimes I fill it, sometimes I leave it empty. I can't tell any difference.
Heres a few links for you.
https://www.virtualweberbullet.com/operating-tips-modifications/https://www.youtube.com/results?search_query=running+a+WSMhttps://www.youtube.com/c/TROYCOOKS/videosHave fun and get out there cooking something!