Vector and Bitmap

Vector and bitmap are the two major 2D graphics types.

BITMAP
These images are made up of pixels in a grid and rely on resolution. This makes it difficult to resize your image without sacrificing clarity and image quality. Common bitmap formats include JPEG, GIF, TIFF, PSD etc.

VECTOR
These images are made up of many individual and scalable objects and render at the highest quality. You can resize these images to any size and the edges will always remain smooth. Fonts for example are a good example. However, there are negative points to vectors, the  main one being it is difficult to recreate realistic scenes. Vector based images are normally just a solid or gradient fill.