Is it better to upload a pic or use a link to a hosted picture site?
If you are a member, as I see from the green star that you are, this is my recommendation:
If you own the pic, or took the pic - post it up from your own PC as an attachment, easy-peasy...
If the pic was found elsewhere on the web, or you didn't take it, post the link to the image address using the "Insert Image" icon from the advanced mode here - that way it doesn't look as if you are trying to take ownership of someone else's pic.
No need to screw around with an image-hosting website if you are a member - you paid for the privilege of uploading direct, go ahead and use it!
Side benefit of posting direct - no worries of the image-hosting website changing its policies or going tits-up and ruining all your posts...
"thumbsup"