How do I save my screen snips on Windows 11 computer?

When I use the built-in screenshot feature (Windows key + Print Screen) or third-party screenshot tool, I'm able to capture the image I need, but when I try to save it, I'm not sure what file type or format I should use. I've tried saving it as a JPEG or PNG, but the image is not what I expected. It's blurry, pixelated, or loses its original quality.

I'd like to find a way to save my screen snips in a high-quality format that allows me to easily edit and share them. Any suggestions?
Thank you.