When would you use a PSD? Many people use PSD files when they're working with high-quality graphics data such as large, detailed photographs or other high-resolution graphics and artwork.
What are PSD templates used for?
PSD templates are multilayered files which can be edited independently. You can keep the design layer as it is and edit the text, or include different images. Templates are very useful if you want to design a website, a business card or a social media post, among others.
How to use PSD?
The main difference is that PSD files are editable in Adobe Photoshop, whereas PNG files are flat, compressed images. So what if you have a PSD with a transparent background, but it's too large to upload or share? Some PSD files can be nearly 3GB. Try converting a PSD to a PNG.