JPEG and PSD are the two image formats commonly used. JPEG format is not application dependent, while PSD is the native format of Photoshop. PSD gives you a lot of flexibility when processing the image files. PSD keeps all your layers, masks, paths and such intact. It allows working with image layers and editing each of them separately. If you have multiple image layers and want to save them in JPEG, all the layers would be combined into a single image, and separate layer processing would become impossible. JPEG allows having only a single layer. PSD is more powerful than JPEG – it saves a lot more information about each image file. But this results into a big file size. If you are actively editing a photo, PSD is the way to go, but if you just work with a bunch of images, JPEG should be your preference. PSD files cannot be opened outside of a computer, while JPEG can be opened by many applications, including smartphones. So, for saving and storing photos, you should use JPEG. Not only will you be able to open your files anywhere you want, but you can save a lot of storage space which is limited on portable devices. If image quality is essential, keep your image in the PSD format after processing instead of saving it into JPEG. JPEG compresses the image and some data will be lost. With ImageConverter Plus you can convert your PSD images into JPEG format . No matter that some data will be lost anyway, the developers strive to make the software produce the images of the highest possible quality. Image quality can be additionally specified when the program is launched if you are not satisfied with the default parameters.