logoclick In my band, we ended up using 3 different methods (although 1 is only used sparingly, so really 2 different methods). Now some people might say "that must be confusing! why not pick one methods and stay consistent!?" but for us, it came down to each lyric sheet, how 'wordy' the song was, how long lyric lines got, etc. We also timestamp our lyric sheet to have phrase/line highlighting, so that was also a factor.
Method 1 - Chords (https://stagetraxx.com/user-guide/lyrics/#adding-chords). When we started with ST, this is what we started with. Over time, we found that it added a LOT of extra white (black?) space to lyric pages and, with scrolling and highlighting, just made it (in our opinion) harder to glance at and read. So, we moved to a combination of the next 2 methods primarily.
Method 2 - "whole line chord line" (https://stagetraxx.com/user-guide/lyrics/#adding-chords) - where we didn't need chords embedded in with lyrics, or spaced out to show when different chords sat between words, we'd just use the whole line chord line method. E.g. If everyone just needs to know that the chorus of a song is just a A C E progression repeated, then above first line of a chorus we'd just have ' A C E
(note: I'm using the incorrect character in these examples otherwise the forum software tries to turn the text into a code snippet!) . This will automatically get text coloured your chosen chord colour. Because we never expect to need to use transpose features, we actually use this method for band notes as well. E.g. ' A C E . Gtr 1 riff A end of 2nd and 4th line
Method 3 - Text Colouring (https://stagetraxx.com/user-guide/lyrics/#colors) - where we do want chords interspersed with lyrics, we use this method. We typically combine this and Method 2 for our lyric sheets and put just enough info to jog everyone's memory in case we haven't played a song for a while, while not making the lyric sheet overly messy for the singer.
As has already been mentioned, you do give up the ability to auto transpose when you use Method 3 (and I assume Method 2?) but if you don't see yourself need this, then the above gives you a range of options.