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Confused about Photos app and Photo Stream, can I get some clarity?

I

iMore Question

Confused about Photos app and Photo Stream

I am confused on how Photo Stream and the Photos app work. I do most of my photo work on my Mac. If I create a new album and drag pics from Photo Stream to that album and then delete them from photo stream they get deleted from the album.

My concern is I will start losing pics when I hit the limit in Photo Stream, plus part of the same issue is I need to conserve space on my phone so I want to delete pics but don't want them gone forever. As long as they are on my Mac that is fine.

Help please.
 

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