OneDrive File Sharing – How to Share Editing on Documents and Folders

With Dropbox when I add a new document (.txt, .docx etc) to that folder, those documents will be synced to other participants in that shared folder.
Whenever that other participant changes that document, I will automatically get the latest version in my Dropbox folder.

Simple enough, but in OneDrive this doesn't seem to work.

First of all, when someone shares a folder with me, that folder is NOT synced to my local PC and I also can't see it when I try to choose the folders I want to sync via the Onedrive client. Also via the OneDrive web interface I don't see the shared folder under the 'Shared' menu on the left side.

When someone shares an individual Word document with me, I can download it, but then downloads it not to my OneDrive folder, but my regular downloads folder, so it's no longer in the shared folder (very annoying). Or I can edit it via Word Online, which I really don't want.

So basically: how to do folder/file sharing AND editing in OneDrive like on Dropbox? Is it even possible? Right now it's a mess and confusing!