List post categories that link to a page showing those posts

I have posts with different categories.

I have a blog page that lists the posts like this.

        <?php

            $blog_args = array(

                'post_type' => 'post',
                'order_by' => 'date',
                'order' => 'ASC'
            );

            $blog_loop = new WP_Query($blog_args);

            if($blog_loop->have_posts()):
                while($blog_loop->have_posts()):
                    $blog_loop->the_post();
        ?>


            <div class="row">

                <div class="col-sm-3 img-responsive">
                    <?php
                        if ( has_post_thumbnail() ) {
                            the_post_thumbnail('post-thumbnail', array( 'class' => "img-responsive"));
                        } 
                    ?>
                </div>
                <div class="col-sm-9">

                    <h3><?php echo the_title(); ?></h3>
                    <p><?php echo the_content(); ?></p>

                </div>

            </div>


        <?php endwhile; endif; ?>

        <?php wp_reset_postdata(); ?> 

I would like to have a list of the different categories on the blog page. If I click the category I would like to show the post with that catogory.

I can list the categories like so.

        <ul>
            <?php 
                wp_list_categories('title_li=>'); 
            ?> 
        </ul>

If I click the link it takes me to an empty page with the name of the category in the URL.

How can I list the categories and link to show the post with that category.