I didn't see it in the memories, so I decided to ask here. (I have 2 questions)

1. I use psp8, how do I make things transparent?
2. Once the picture is transparent, how do I get it on top of another picture so that it blends? Is there a certain tool or something.

Thanks for all of your help in advance!

This icon (the last frame) is an example of something I want.