A raster image is based on a dot-matrix or pixel grid and requires a high resolution in order to be printed or adapted to multiple display formats.
It is not scalable; if you increase the size of a raster image, this image will look blurry. To prevent this, all you can do is leave the image in its original size or make it smaller.
PSD, JPEG, TIFF, GIF, PNG, RAW
A vector image allows us to maintain the quality of the design across multiple formats and resolutions. In a vector file, each point, line, and shape created is fully scalable.
EPS, AI, SVG, DXF