Advice needed to set up a blog

What you want to achieve is very simple. Just find a template that allows you to remove the blog feed from your home page. You won't need a second wordpress installation to create a /blog/ sub-directory. Take a look to any blog guide, it's really easy: how to set up a wordpress blog - YouTube

The first option is the easiest IMO and the best as well. After installing WP on the root domain and setting a static page to display on the homepage, you can create a page and change it's permalink to "domain.com/blog" and set it as your posts page in reading settings.

Option 2 is also practicable as long as you can design a good homepage with html.

First one the the batter option.

Yeah, would agree to get first one.
In any case you want to get much better ranking, do run blog as homepage first. Then when you blog started to rank, change your homepage to static page and the blog became sub folder like 2nd option.

i think both are good,use both its depend on result

i am also looking for it .. can anyone suggest best blog site template ?

I would suggest 2nd option. We are having our blog exactly like mywebsite.com/blog. It gives a lot flexibility to keep everything clear.

Have a read of this article. Covers a few topics you may be wondering about when it comes to the best way to create a website.

I would like to suggest you for the second option. (2) Installing the WordPress in blog sub-directory (like mywebsite.com/blog). Updating content frequently that will extremely helpful increase the crawling rate of your website and increase the presence in the search engine results listing.

Thanks everyone for your valuable suggestions.

From my opinion second option would be preferable for you.its look good and also helpful for better SEO.

What is better for SEO? I believe is your question.

Here's the thing with SEO, do not try and game the system (google) or they will sandbox you.

SO better to be legit. Yes if you want your homepage to always show, then keep the static homepage set to a page you created in wordpress. You don't have to make another wp directory for the blog. In the settings area, just tell it where the blog posts page is gonna go. So for example, make a page called blog, and then all the posts will go there.

There is some debate on having all posts show up on the home page, as far as getting better seo juice from google. But the jury is still out on that.

If you just create unique content, that people actually enjoy and want to read, then the seo will take care of itself. Always use the social share plugin that will go below each post, so that people can share your content.

Google is giving much more weight to social share, and social signals, than to backlinks. If you just concentrate on creating content, then the seo will take care of itself.

Also, set your permalinks, so that it shows the blog post name, this is also creates a friendly url that google likes. And you can install yoast or all in one seo plugin so that you can edit each title, and meta descriptions.

its very very easy, just create a free blog with the your site name and custom its setting and add posts and daily bases and use ahrefs link to got back-linking........