This is the most commonly used method in the UK and USA. The needles are held differently in the right and left hands.
Hold the needle with the stitches on in your left-hand. Wrap the yarn around the little finger of your right-hand and then come up between your index and second fingers.
Hold the other needle in your right hand, placing it in the crook between the thumb and index finger, in the same way as you would hold a pencil. The right-hand index finger is going to control the tension (gauge) of the yarn, so it is important to keep the yarn slightly taut around this finger.