how to display full post with pagination on home page

I am using the ‘Hatch’ theme. I’m familiar with HTML/CSS but not with WordPress, first time working with this.
I have my homepage showing recent posts and that’s good.

However, I want to make a new page called ‘Blog’ where I can show all my full posts, with pagination as well.

I thought I might have to create a template? Or, I tried making a category ‘blog’, but I don’t know how to change the display of that particular category.

I read similar questions, to my understanding I gotta get a loop happening, but I don’t know where.

my site is LizettePhotography.com

home.php code:

<?php
/**
 * Home Template
 *
 * A custom home page template.
 *
 * @package Hatch
 * @subpackage Template
 */

get_header(); // Loads the header.php template. ?>

    <?php do_atomic( 'before_masthead' ); // hatch_before_masthead ?>

    <div id="masthead">

        <?php do_atomic( 'open_masthead' ); // hatch_open_masthead ?>

        <?php $hatch_author_bio = hybrid_get_setting( 'hatch_author_bio' ) ? hybrid_get_setting( 'hatch_author_bio' ) : '1'; ?>

        <div id="author-bio"><?php the_author_meta( 'description', $hatch_author_bio ); ?></div>

        <div id="header-banner" role="banner">

            <?php // Check to see if the header image has been removed
            $header_image = get_header_image();

            if ( ! empty( $header_image ) ) : ?>

                <img src="<?php header_image(); ?>" alt="" />

            <?php endif; // end check for removed header image ?>

        </div>

        <?php do_atomic( 'close_masthead' ); // hatch_close_masthead ?>

    </div>

    <?php do_atomic( 'before_content' ); // hatch_before_content ?> 

    <div id="content">

        <?php do_atomic( 'open_content' ); // hatch_open_content ?>

        <div class="hfeed">

            <?php if ( have_posts() ) : ?>

                <?php $counter = 1; ?>

                <?php while ( have_posts() ) : the_post(); ?>

                        <?php do_atomic( 'before_entry' ); // hatch_before_entry ?>

                        <?php if ( ( $counter % 4 ) == 0 ) { ?>

                            <div id="post-<?php the_ID(); ?>" class="<?php hybrid_entry_class(); ?> last">

                        <?php } else { ?>

                            <div id="post-<?php the_ID(); ?>" class="<?php hybrid_entry_class(); ?>">

                        <?php } ?>                                                  

                                <?php do_atomic( 'open_entry' ); // hatch_open_entry ?>

                                <?php if ( current_theme_supports( 'get-the-image' ) ) {

                                    get_the_image( array( 'meta_key' => 'Thumbnail', 'size' => 'archive-thumbnail', 'image_class' => 'featured', 'width' => 220, 'height' => 150, 'default_image' => get_template_directory_uri() . '/images/archive_image_placeholder.png' ) );

                                } ?>                    

                                <?php echo apply_atomic_shortcode( 'entry_title', '[entry-title]' ); ?>                     

                                <?php do_atomic( 'close_entry' ); // hatch_close_entry ?>                           

                            </div><!-- .hentry -->

                        <?php do_atomic( 'after_entry' ); // hatch_after_entry ?>

                    <?php $counter++; ?>

                <?php endwhile; ?>

            <?php else : ?>

                <?php get_template_part( 'loop-error' ); // Loads the loop-error.php template. ?>

            <?php endif; ?>

        </div><!-- .hfeed -->

        <?php do_atomic( 'close_content' ); // hatch_close_content ?>

        <?php get_template_part( 'loop-nav' ); // Loads the loop-nav.php template. ?>

    </div><!-- #content -->

    <?php do_atomic( 'after_content' ); // hatch_after_content ?>

<?php get_footer(); // Loads the footer.php template. ?>