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Horses for courses really - I use both and they both work well. The pellets are more convenient to store I find but both give good flavour. If you buy pellets make sure that they are 100% the wood you are buying and do not use a filler - often Oak.
I have Pellets, because I have a Pellet smoker, but use them on my other pits as well. You will find over time, that you will pick all sorts of woods up from various places.
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