Funds still go into the same wallet and
if I send coins from the wallet it would always be from the same
"from" address. Am I correct?
Not exactly. It depends on the amount of coins you'll send. Here is an example:
- You have address
Consider you want to send
1.1 BTC to the address
In that case the transaction would have 2(A,B) outputs and 2(C, X) inputs *:
1 btc and
1 BTC to the address
0.1 BTC to the address
0.2 BTC will be your change, and it'll be sended back to you*.
from address will be the collection of your income addresses(
*Some wallets do let you manually select which address should receive the change from a transaction.
*In some cases client will create a new address for change.