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In this YouTube tutorial, Claudio from Visual Moto WordPress Teams demonstrates how to compress images to reduce size using the free online tool TinyPNG. The project offers premium options, but the free option provides all necessary features. Popular brands like Lego use this tool. Users can access the pro version for a small fee. The tool effectively reduces image size without compromising quality. To compress images for free, users can simply upload their PNG or JPG image and select the desired reduction size.