Bitmap files (signified by .BMP extension) are the standard in basic image editing. Bitmaps are exactly as the name says, a map containing many bits of an image. The image displayed above is what a bitmap file would look like very close up. As you can see, it is just a large array of bits of an image, that when put together, looks like a picture. Since scanners and digital cameras take pictures in this same way (by capturing an group of pixels) most image editing programs will use BMP files for a true 1:1 copy of the file.
Benefits
High image quality
Easy to edit and change
No image loss through process
Downfalls
Not usually displayable on internet
Large file size
JPEG images are the most common image type that you will come across in your travels around the web. JPEG stands for "Joint Photographic Experts Group". What this means is the specific way that the image is compressed has been approved by the photograp hics expert group to be the best format for an internet-displayed photographic image. There are reasons why you should use JPEG compression and reasons not to, such as:
Benefits
Small image size
Viewable from the internet
Uses millions of colours
Perfect for most images
Downfalls
High compression loses quality
Every time a JPEG is saved, it loses more and more of the picture