I've done both (in basket, in chimney) and I prefer to use the chimney then dump into baskets. When lighting in a chimney, the coals on the bottom are more "done" than at the top so when you dump into the baskets, the less done coals go into the bottom of the baskets and the hotter coals end up on top. I feel like it burns better. Plus, using a chimney, coals light faster than starting in the baskets. I also think the wire baskets suffer from being blasted by the propane torch from the burner tube.