In this chapter, you will see different types of "spacing". Some make their stories a whole paragraph while some make many separate paragraphs (both is okay).
The only problem with your story being one whole paragraph is that readers might get confused and might end up reading the same line again and again.
Example:
"Hey, have you heard of that new bookstore that opened across the street?" Troye excitedly asked his friend, Pamela. She shook her head and laughed at the excitement of her childhood bestfriend. "No, I haven't, actually," she beamed. "Awh, that's a shame, but we can go visit it next time when I get my new car," Troye responed and smiled, showing off the crinkles by his eyes. Pamela then knew that Troye was the best friend ever and she loved him a lot.
However, you can go divide that whole chunk up there into more paragraphs.
An example of a story written in many paragraphs is this:
Hunger stroke Melanie as she walked through the crowded streets of San Francisco with nothing but hope in finding somewhere to stay. Running away was obviously not the smartest decision she's ever made. Not that she made smart decisions, though.
Few people avoided walking her way because no one would want to make contact with such a dirty person as her. Melanie's clothes were ripped and torn at every edge, but she still managed to not make them slip off her slender frame.
Yep, I tried.
Anyway, I think you get it by now. Comment down below which style of spacing you prefer!