Here is an example to show you the difference: If you created an image in Adobe Illustrator or CorelDraw, you are creating a vector graphic file. However, when you create an image in a program like Photoshop, you are creating a bitmap graphic that is NOT a vectored format. The main difference is the vector graphic will retains its crispness at any magnification, and a bitmap graphic just appears jagged when scaled up (zoomed in).