Upload your image: Upload —> File
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Counter-intuitively, "Preserve file name" is often not what you want. Clicking it adds a parent folder (path) that contains your file. If you then try to link to the file, the IPFS now points to a folder instead of directly to the intended file.
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The IPFS CID is how you identify your file on the network. Use this to link to your file. Apps will typically ask for a CID (sometimes just called a "hash"). You may also want to have a full URL to your file, which can look like this: https://ipfs.io/ipfs/<CID>
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