Vtf Edit not makeing transparent textures transparent in the editor

I'm not talking $translucent
Like... Here's a pic


*SAVED AS PNG


My settings:


Channel set to "A" makes it only white...



I feel it's not supposed be like this.

plz no hate me. I feel this issue might be frequently asked, but i couldn't find anything on google.

I think it might have to do with Eight bit alpha. >.> please keep in mind i don't know much about vtf edit, or png files. xd

 

https://developer.valvesoftware.com/wiki/Valve_Texture_Format

When you import an image with transparency, you have to use an alpha-enabled format, or the alpha will be lost. In the General Options tab, just change Alpha Format from DXT1 to DXT5.

 

Hey! Thanks. >.>

 

http://steamcommunity.com/sharedfiles/filedetails/?id=121115553

This guide is about the sprays, but it's still useful.

 

also $alphatest I think works when added to the .vmt