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To hide drywall edges, you need to properly apply drywall tape and multiple layers of joint compound. These materials hide the seams between drywall sheets and fill the holes from drywall screws, leaving behind a smooth, flat finish to paint over. Apply joint compound smoothly, and finish the job by sanding the walls to make sure you fully hide drywall edges and other imperfections.

Yes, it matters which side of drywall you use. One side is smooth, and the other is rough. The smooth side should be facing outward, toward the room, while the rough side should be hidden and facing the studs and framing of the house. The smooth side will be easier to apply tape, joint compound, and, later, paint to.

Drywall anchors aren’t necessary if there’s a stud behind the wall where you’ll be working. Studs are strong enough to support screws on their own, but they don’t run throughout the wall. If you’re doing a project that involves the entire wall and not just one part (like hanging a small painting or photo), odds are you’ll need drywall anchors at some point in the process. 

There is no way to cut drywall without making dust, but you can reduce the amount of dust and especially the dangerous airborne particles by using manual cutting tools. Using a utility knife to score and snap your drywall will minimize dust production, and a jab saw for cutting cutouts for boxes and fixtures will generate almost no airborne dust. Even if you use these methods, you should still wear a respirator and safety goggles to avoid damage to your lungs and eyes.