inserting images inside text

Hello, I’m about to start a blog and have two options, Blogger or WordPress. The only condition is that I insert images inside the text, not links to an image bank or similar. To my understanding Blogger does admit such a feature, but I’m reluctant to have them store my blog data and images.

If I get hosted in WordPress, will I be able to store these images in WordPress servers or not? My blog will have Adsense and other commercial links, can this be, if hosted by WordPress or do I have to get a VIP account?

Thanks