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Allowing users to upload picture to server

Pictures say more than thousands of words. That's why I would like to allow users of my Drupal 7 website to upload pictures in their posts. Now I would like to know how I can do this and what are the drawbacks there. Can hackers use it to hack the system? How can I protect it? 

 

Also, I already added this feature to the editor but there I am only able to insert links. It's not possible to browse the home PC to upload pictures from there. Does anybody know how to do this? Also is it maybe better to not allow picture upload the way I would like to do it?

 

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