You might also like to check out the following guide to determine if you should use Netlify DNS or not
You can find the relevant documentation for Netlify DNS here and using external DNS here.
All this and more is also available in
The required records will depend on whether you use Netlify DNS or external DNS (see above.)
There are two options you have toyed with
1:
and 2:
This is (probably) largely personal preference. Some people prefer a blog at /blog others at blog.example.com. Either way both are possible, though using a sub-domain is easier to configure.
If you have any further questions or issues, don’t hesitate to reply.