What is the best type of image compression to use for compressing my images?

Image Compression Component for Programmers

GIF Compression Components

Graphic Image Format or "GIF" is the most common compression method for graphics on the Web. It works only on indexed color images of 256 colors or less. GIF compression works best on images with relatively large areas of solid colors. The latest GIF format, GIF 89A allows one color to be specified as transparent. By using this format, GIFs can appear not only as rectangular images, but as irregular shapes. GIF Components for programmers.

JPEG Compression Components

For web viewing, JPEG compression is the best method for compressing photographs and other images with complex blends of color. Its compression is based on the human eye's ability to detect detail in complex scenes. Essentially, the compression algorithm compromises detail where it thinks you will least notice the loss. Because detail is irretrievably lost during compression, JPEG is called a "lossy" compression. JPEG Compression Components.

JPEG2000 (J2K, JP2) Compression Components

This new, state-of-the-art compression standard provides a flexible solution for high-quality, wavelet-based compression. Wavelet compression uses mathematical expressions to encode the image in a continuous stream. Depending on the amount of compression the user applies, the result can be completely lossless (no artifacts), and yet produce extremely small files. There are developer SDKs currently available that support JPEG2000.