PSD is the native format of Photoshop. It contains layers which makes it easy to modify. Photoshop users can edit and retouch the PSD files or create new images. GIF is the image format widely used in the web. The GIF files are very small and ideal for graphics that do not require lots of colors – this is what makes it very different fr om PSD. The GIF format is mostly used for logos, line art, etc. GIF uses lossless LZW compression – optimal compression for solid color graphics. The main reason to convert PSD images to GIF will be the internet usage of such images. Images like a company logo or screenshots should be reduced to 16 colors if possible and saved as a GIF for smallest size on the web. Another advantage of GIF is its transparent background, wh ere one palette color is declared transparent, so that the background can show through it. ImageConverter Plus will let you convert PSD images to GIF in single or in batch mode.