JPG is the most popular image format, however it has one major limitation: it does not support transparency. Whenever you need a graphic to appear on a different surface with no an ugly white box, you need PNG format.
Changing JPG to PNG is a straightforward task, however knowing when this is the correct option saves you time and avoid unnecessary file bloat.
The primary reason to convert JPG to PNG is to use clear backgrounds. Very important for watermarks and design assets which must blend seamlessly into any background.
A key point to remember: changing a JPG to PNG does not automatically make the alpha channel. You will need to cut out the background with an image editing tool such as Photoshop or GIMP.
Something to be careful about during conversion of JPG to PNG is that here PNG files are almost always bigger than their JPG counterparts. This is because PNG applies lossless compression that stores more image data.
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