Help please!

Ok this is like a week on photoshop.
I need some help with learning to blend something like this-

You can't just magically "blend" something. All you'd end up with if you "blended" that more is still a halo guy on a 3 background. Blending something would require a background with lighting and depth to a scene which you could place something in. If you want to merge two elements effectively then you need to start with a good background.