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Transparent on layer projects

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I have some intricate mandalas that I carefully create transparencies in.


Sometimes the transparency carries through to the layer and sometimes it gives me white areas where I had done the Magic Wand to create transparencies.


I cannot determine why some work and some don't. I am using jpg but have been thinking that I might be better off with png. I need a link to read what png does better than jpg. (I know it is better, but why?)



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