First you actually need to create an album. Create a name and perhaps a description, and then you choose from three album types: Profile, Public, and Private. Save. Next, you need to click on the 'Upload Photos' button on the top-right corner, right next to the 'Edit Album' option. A new window should then open up, giving you the option to choose an image from the 1.) files and folder on your computer, or 2.( a website.
1.) To add an image from your computer, simply click on 'Choose file'. Select the folder you keep your pictures in, and then click on the picture file. Click 'Upload'.
2. To upload an image from a website, simply copy the image url and paste it into the 'Upload files from a website' box on your albums. Click 'Upload'.