How to insert a picture into the signature?

I am trying to add a picture of my Shelby at the bottom. Does the picture have to be hosted and then a link added for display?

Not sure if it has to be linked.
Go to your profile, then edit avatar, then upload avatar.
Looked again it looks like you can upload from your computer.

The avatar is the small picture on the right side. It is attached to the signature. I figured it out last night.