Sort:  

On your blog, next to the wallet, there is a "settings" button.
Only one possibility to add the URL of a pic there (you got to host it somewhere, though)

He is correct there, and I did a post on that this last week, as well, you can find it on my blog if you like. Or search How to change your profile picture, etc. It is easy. Have a good nite.

With Photoshop or other software, compose text and photo, save in JPG. Add your image to Submit a story.
In setting, it's only a thumbnail near your name