The PNG file format is ideal for sprites. It supports millions of colours, which means your sprites can be full of colour and life. PNG uses loseless compression which means when you save your image it will compress it without losing quality (unlike the JPG format which uses lossy compression).
Use PNG it's a really good format with a XML for animation frames. Also there is APNG for animated PNG haven't tried it but it should work also. PNG:s can be compressed with OptiPNG or PNGCrush which makes them a lot smaller.
GIF — Graphics Interchange Format The GIF format is most famous (and most used) for animated images because its 8-bit limitation keeps file sizes of animations small and internet-friendly.
bmp) BMP or Bitmap Image File is a format developed by Microsoft for Windows. There is no compression or information loss with BMP files which allow images to have very high quality, but also very large file sizes.
What is your favorite, lossless image format for games (namely 2d games)? And why?
Some things to take into consideration are size on disk, overhead for converting to a usable format, and features of the format (ie alpha support).
There is no best answer, but be sure to back yours up the best you can!
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