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RAW

A RAW image is the least-processed image type on this list -- it's often the first format a picture inherits when it's created. When you snap a photo with your camera, it's saved immediately in a raw file format. Only when you upload your media to a new device and edit it using image software is it saved using one of the image extensions explained above. RAW images are valuable because they capture every element of a photo without processing and losing small visual details. Eventually, however, you'll want to package them into a raster or vector file type so they can be transferred and resized for various purposes.

PSD

PSDs are files that are created and saved in Adobe Photoshop, the most popular graphics editing software ever. This type of file contains layers that make modifying the image much easier to handle. This is also the program that generates the raster file types mentioned above. The largest disadvantage to PSDs is that Photoshop works with raster images as opposed to vector images.