How to use list from sys/queue.h?

Currently, I have implemented a singly linked list, like so:

struct PeerNode {
     struct Peer* cargo;
     struct PeerNode* next;
};

...and I have a struct that contains a couple of these linked lists, like so:

struct Torrent {
     ...
     struct PeerNode* peer_list;
     struct PeerNode* unchoked_peers;
     ...
}

I would like to replace this by using the macros provided by sys/queue.h. I gather that I could replace my code with something like this:

struct Torrent {
     ...
     LIST_ENTRY(PeerNode, Peer) peer_list;
     struct PeerNode* unchoked_peers;
     ...
}

Then, from looking at man queue, I believe I would initialize the lists by doing something like this:

LIST_INIT(&peer_list);
LIST_INIT(unchoked_peers);

However, I don't understand how LIST_ENTRY factors into usage of the list. From the man page, it says: "The macro LIST_ENTRY declares a structure that connects the elements in the list," but I don't really understand what this means.

Why would I want to declare a structure to connect the elements in the list? Shouldn't each node be connected to the next node via a pointer, like my initial linked list implementation? How would I replace my linked lists with the implementation provided by sys/queue.h? How would I insert an element into the list?