As the name implies this guitar is used typically for classical music. The strings are made of nylon and are tied at the bridge since they do not have ball ends although there are nylon strings made with ball ends used on some acoustic guitars. Notice also that the neck does not have any position marks.
You use your fingers instead of a guitar pick which is why this type of guitar does not have a pick guard. You will need to grow and shape your fingernails
on your right hand (left for left-handed guitarists). By using combinations of just the fingernail, the fleshy tip of your finger or both so you can generate different types of tone, brightness or warmth of the sound as you finger-pick.
Serious study of this instrument involves a great deal of technique such as mastering the "Segovia" technique for your picking hand.