Compacting pictures

Is there anything I need to keep in mind in converting pictures currently stored in a scrivener project?
Would I need to export each and re-import it?
What is the most compact format/method for pictures in Scrivener?

Before I heard about Scrivener, I was doing a lot on charts and index cards. Plus, I lost a hard drive at one point and my printouts became all I had of some years of work on a project. Due to various circumstances, I needed to go paperless in a hurry, and brought a lot in as pictures. I’m currently trying to reduce my project file size. Many of them are png.

You can usually reduce file size by converting to jpg and reducing the quality (try a few to decide the lowest acceptable quality)

This screenshot is using Preview on Mac, however there are any number of Mac and Win apps to use including some that will bulk convert.

When you link to pictures on your hard drive, they don’t bog down your project. Choose Insert > Link to Image and point to the image location.

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Thanks, both of you.
Generally I want to keep items specifically related to/created for that project in it, so they stay together, backup together, etc., but there may be some cases in which a resource is just as well kept in a separate folder.