Ever wondered how you get that pixeled punk effect? Well, now we're going to learn.

First of all you need a picture. It works best on color pictures, size doesn't really matter so you can use it on anything from a layout to an icon. I've chosen this base:

Copy the picture and paste, making a new identical picture. Then go to Colors > Decrease Color Depth > 2 Colors (1 bit)

You'll see this window and you'll want your settings like so:

Your picture will then do this:

Now, copy that picture and go back to your original image. Paste as a new layer (Ctrl+L) Your old image will be hidden by the new one. If your image doesn't want to paste, try Increasing the color depth to 16 Million colors (the same way you decrased them Color > Increase > 16 Million).

If you have your layer palette open, simply adjust the layer opacity to around 30. Mess with it until you're satisfied.

If you don't have your layer palette open and don't know what I'm talking about, go up to Layers > Properties and do the same thing there.

What you're left with is this:

Ta da! Great huh? The effect is really fun to play around with. I got this similar effect by using Decrease Color Depth > 2 Colors> Error Diffusion > Floyd-Steinberg.

So congratulations on your new picture and have fun with those layers!