If you are in the "Editor" mode, there is a button where you can add a picture. If you switch to "Markdown" mode, below the place where you edit the text is a place that will show you a preview of your post. The image should show up in the preview. If you are in "Markdown" mode, you can also just paste the URL/link to the image directly in the text, and it should show up that way as well.
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