While there is a compression and loss of information editing jpeg images, the difference is so minor unless you are re-opening dozens of times. There is no right or wrong per say, though many will feel strongly about how they manage their workflow. Hopefully after reading this you have a better idea on which suits your style. The downsides are limited colors and does not handle photographs well.The file size is very small so these files load fast on the web.The Graphics Interchange Format is good for web graphics with animation but NOT recommended for photos.Often used for graphics instead of GIF.
Unless you are printing from an Adobe application like Photoshop, or possibly another graphics program, you will need to save in a different format for printing, such as at a professional lab.Only those with Photoshop, Adobe products or certain other graphics programs will be able to view them.PSDs often are large in size, especially if you edit with many layers.Useful if you need to maintain transparency.Saving this way will retain adjustment layers, your masks, shapes, clipping paths, layer styles, blending modes.You will want to save as a Photoshop PSD when you have many layers that you want to preserve.