Elena, First of all, masturbation is not something to be embarrassed about. It is part of a healthy sex life. And how you do it, is your own secret. So don''t worry about it. There is no right or wrong way, as long as you do not harm yourself.
Is this the first time you have seen the blood? Do you just rub up and down or do you actually try to press the point of the egg inside your vagina? What clothes do you have on? Can it be a zipper cutting you? Do you see any cuts or is the blood coming from your vagina? How much blood and how soon does it stop?
It is very possible that you are just seeing early menstrual flow being forced out of your uterus/cervix and mixing with cervical mucus or arousal fluid. This can happen due to changes and movement in your uterus during sexual stimulation. With the cramps, it does sound like early menstruation.
I do not think your muscles can have anything to do with it.
As you should be well aware by now, your clitoris is the spot that will make you orgasm. Everything else might feel really nice, but stimulating your clitoris until you climax is what it takes. Through clothes, this is more difficult to do. Normally your fingers can do the best job of this. Do you know what you look like down there? If you do not, take a mirror and look and identify all your parts. Some women have other places where stimulation will make them orgasm, but for a young girl like you, the clitoris is what you should first learn to stimulate to climax. And don''t give up too soon! Many girls do not get an orgasm because they get afraid of the strange feelings and their bodies reactions to continued sexual stimulation and they just stop too soon.
Best of luck