What considerations have to be kept in mind with JPEG?

When using JPEG format, it's important to consider that it employs lossy compression, which can lead to a reduction in image quality, especially after multiple edits and saves. Additionally, JPEG does not support transparency, making it unsuitable for images requiring transparent backgrounds. The format is best for photographs and images with gradients but may struggle with sharp edges and text due to compression artifacts. Lastly, its maximum color depth is limited to 8 bits per channel, which can affect color fidelity in certain applications.