First of all, you might wonder what I mean by saying that content creators use Photoshop for the wrong purposes. Well. Photoshop is meant for bitmap, while Illustrator is meant for vector. What does this mean? As Adobe explains the difference in great detail here, but put it simply:

A bitmap is made out of those tiny squares we call pixels. When sizing a bitmap element up, it will get blurry because the information pixels carry is limited. Look at the example: the first picture is nice and sharp but the second is starting to get blurry.

That is because the first picture is at 100% (“its max potential”) while the second one is sized up to 400% (“way past its max potential”). As Photoshop is bitmap-based, this will happen with everything you create in it. Even and especially text.

On the other hand, the vector is made of curves and points. When sizing a vector element up, it keeps its sharpness no matter how far you go. Look at this example:

As long as I have this cube in Illustrator, it will never reach the max potential. I can make it as big or as small as I want without worrying about it becoming blurry. Hmmm, but what about text?

Yup, look at this bad boy!

And this is where we come across my first thought: Why work with text in Photoshop when you can do it (much better) in Illustrator?