Er, in the project.
Go to the project header and you'll see swathes of stuff about the schemes it's using. As an admin, you can change them.
I'd recommend skimming https://confluence.atlassian.com/display/JIRA/JIRA+Administrator%27s+Guide to get a feel for it.
My understanding is that sending email is handled by Atlassian, but I'd check the docs.
Have you tried the standard "send test email"? Can you check your account profile to make sure you haven't got "email me on my own changes" flag set? (If you're the only one testing so far?)
Should be enough - if you've had one email from Jira then you know the physical link is working.
So, you need to work through the notification scheme stuff as described in the documentation https://confluence.atlassian.com/display/JIRA/Creating+a+Notification+Scheme . If you need help with that, you're going to have to tell us exactly what you have configured and where. I would find or create a test issue in your project (or even a test project) so you can test with that without breaking your real data. As you seem to be completely stuck, forget that there's a huge long list of events to react to, and look JUST at the EDIT notification for now (because you can edit the test issue over and over and over)
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