Understanding key file formats

In both Adobe Photoshop and Adobe Illustrator there are several different formats to save files in which have advantages and disadvantages.

A Photoshop PSD (.PSD) is designed to be worked on in photoshop and is best used for print.
An advantage of a PSD is that it keeps layers, text, and colours active so the photo is able to be edited.
A disadvantage is that photoshop is the only program in which this image format can be edited by.


A Gif file (.gif) is designed for web. Advantages are that Gifs are good for sending electronically as they compresses into a smaller file. Gifs can also have transparent areas om the picture which allows the image to go onto a premade background without disturbing it.
A disadvantage is that gifs are unable to keep a lot of detail.