Categories overview that links to page displaying posts
I am trying to achieve the following
A page that displays a series of categories with a title, description and an image
When a category is clicked, all posts that belongs to that category gets shown.
I see 2 ways to achieve this:
I could create a custom taxonomy, ad an image field and list all the categories in this taxonomy in a custom template. How to handle the templating for displaying the posts when a category is clicked, I am not sure of.
I could create a template with categories registered and saved with wp_option, then from each post choose a category, then make a custom query to select all posts in that category. Again I am not sure which type of template to create.
What is the correct way to achieve this?