You have probably tried to save a image with transparency as a JPEG but when you drag it into Photoshop. It doesn’t have any transparency. This is because JPEGs do not support transparency. This is why knowing what file format to use is a time saver. Here are some file formats.
PNG – Stands for Portable Network Graphics. This file format is very important because it can support transparency. Also PNGs wont lose quality in photos.
JPEG/JPG – Stands for Joint Photo Expert Group also .JPG. This is the most common file format because it takes up less space than other formats.
GIF – Stands Graphics Interchange Format. This format will not loose quality. What is special about this format is it can allow animations and transparency. GIF are used commonly in websites.
PSD – Stands for Photoshop Document. If you have ever used Adobe Photoshop. You already know what this format is. This format allows you to save layers to edit later. Most computers without Adobe PS wont allow you to open this file format.