How to read blockchain.info transactions in the blockchain? so i'm learning about bitcoin, and i've purchased overpriced bitcoin for 1USD.
the flow was as follow:


i've created an account in https://localbitcoins.com and contacted a seller.
the seller sent me 0.0007 BTC to that account, the site switches addresses as i understand to keep it secured - this is the address that i have there 1DZPyyLMcu1jKaEJ5fskeEpsMbjY49L9JL
i've created a paper wallet and transferred the funds there: https://blockchain.info/address/12Egs85EKjDpDLLRigbszSR9TnyGRKqhnD


my questions are:


i do see the 0.0007 transaction, but why is the previous transaction it's linked to is ~69BTC? shouldnt it be linked to a signle 0.0007 transaction from the old wallet?
why can't i see any transaction at https://blockchain.info/address/1DZPyyLMcu1jKaEJ5fskeEpsMbjY49L9JL ? as i think i've transferred the localbitcoins from there.


so, i'm quite confused, how do i read the history, starting from the last transaction (12Eg...)?
The transaction in which someone sends you 0.0007 BTC includes more payments to other people and one payment back to himself, what is called the change.

When you get Bitcoin in a wallet, everything you get in each transaction is a separate input. Any or several of those can be used to make a transaction, but you can't break them. In order to send a smaller amount than an input, what you do is to make two payments, one to the address to which you want to send that smaller amount and another one to yourself, usually to a new address for privacy reasons. In you example, the sender had a 69 BTC input, made some payments and sent himself back around 67 BTC.

Than second address you mention (1DZPyyLMcu1jKaEJ5fskeEpsMbjY49L9JL) has not been seen in the network, what means that it is not associated with any transaction yet. In the big transaction your 0.0007 have an "unspent" next to them. This means that you have not used them and they are in that address.