On their side will be fine. The wine keeps the cork (when they're real cork) wet, and expanded, so they don't leak, or let air in, to 'rust' the wine. We have about 40 bottles at home, all on their side, in racks.
I built two racks from dowel, and scrap railing stiles, to add more storage above the kitchen cabinet in the house, and for the cellar. I don't suggest that, as it was seriously labor intensive with a drill press, and Forstner bits. Have fun making yours! It always gives me a sense of accomplishment, when it's finished.
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