Both work. I'd argue that #1 is clearer in general, but misleading in C and can lead to errors, e.g.:
type* var1, var2;
// This actually means:
type *var1;
type var2;
So I'd say that #2 is more idiomatic in C and therefore recommended, especially if you are not the only programmer working on the code (unless, of course, you all agree on a style).