It doesn't matter if you save it in paint. You need to save it as a .png
Now, it is a bit hard to thoroughly crit this sprite with the jpeg distortions... but, from what i can tell, the edits you have made are lacking a bit in outlining and highlighting. The hair is a bit overly neon... although that may have been what you were going for. Nevertheless, you have conflicting light sources with the hair's source and the original lighting on the body...
because you need four examples to keep a thread valid, you may want to post more... other wise this thread may be shut down. But you're definitely on the right path! It's always a great way to start out by doing scratch work edits... they give you a base while you can exercise you own ideas. Keep trying to improve! Look at Chesu's tutorials, they are helpful! but really, the best way to get better is to just
Keep Spriting!