Raster
Raster pictures are made up of a series of pixels, or discrete blocks, that are arranged to produce a picture. It includes JPEG, GIF, and PNG. A raster image is any image you see on the internet or in print.
Moreover, pixels have a fixed proportion depending on their resolution (high or low), and when stretched to fill area they weren’t designed to occupy, they distort, resulting in a hazy or unclear image. It’s important to save raster files at the exact dimensions required by the application.
Vector
Vector graphics are more adaptable. Rather than pixels, proportionate formulas are used to create them. For graphics that need to be resized frequently, EPS, AI, and PDF are ideal.
Additionally, vectors are generated using points and curves and no matter how large they are scaled, it stays clean and clear.