On Screen Digitizing is a way to create new vector graphics from scratch.
There are various modes you can be in, which determine what types of vectors are created:
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The N key starts a new loop. This is only needed when the last loop wants to be left open.
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The W key enters Line Mode, where each click creates a new line.
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The S key enters Bezier Mode, where each click and drag creates a new bezier curve.
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The T key enters Tangent Arc mode, where each click and drag creates a new tangent arc, where the arc's center point is determined by the cursor (which is the end point), and being tangent with the last vector selected.
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The X key closes the current loop.
Please see the Freehand Drawing Tool for an alternate way to draw a vector path.