If you want to link externally, you can go to https://n.ht/img.html
This uploads to a public bucket image host and allows external linking.
For posts, it's a private bucket. External links will have issues.

If you were recommending a website, you forgot to include the link.

So do I have to upload images to an image hosting site and then paste the Markdown? I see that the toolbar allows you to upload images directly.

Hmm
This upload works too.
The original design is at https://n.ht/img.html

Because others won't know it's you who uploaded it.
If you upload it on the post page, others will know.

I don't see the website address.

If you need to test it, you can send me a private message with your email address, and I will send you an invitation email. It is not yet officially open to the public.

Address: https://drive.sl.al (Gmail only) Registration gives 50G of space.

Well, I registered and tried it out. It's pretty good.

Let's make changes as we go.