JPEG images help reduce image size and allows for faster website and blog loading times but can suffer from degrading issues. JPEG files are perfect for color images containing millions of color combinations such as a photograph. GIF work perfect for limited color files, like simple graphics or logos that might also need transparency for blending into any background on a site design. PNG files were created as a benefit to both file formats. PNG’s can hold millions of colors and offers alpha layers for transparency. Multiple versions of the PNG file formats allow simple to complex styles without sacrificing loss in compression like JPEG formats. This graphic come from WhoIsHostingThis.com and helps you understand how each image format works.