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With lossy compression, how small you want the final file to be will depend on how much loss of quality you’re comfortable with.

This results in a smaller file but with a reduced quality. Lossy compression is when the compressor removes excessive or unimportant bits from the original file. This results in a smaller file that has the exact same quality as the original. Lossless compression is when the compression tool removes empty, needless, or duplicated bits from the original file. There are two types of compression: lossless and lossy. Simply put, it means converting a large file into a smaller file. In terms of digital files, compression is the act of encoding information using fewer bits than what’s found in the original file.