JPEG applies lossy compression and bakes in white balance, contrast, and color profile at capture time. RAW files preserve the full 12-14 bits of sensor data, allowing you to recover 2-3 stops of highlight/shadow detail in post. The file size penalty is real (3-5x larger), but storage is cheap. For social media only, JPEG is fine. For client work, portfolio, or prints, RAW is non-negotiable.
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