A channel avatar is the smallest thing on YouTube that still has to do real work. It appears beside every video, every comment, every search result — almost always at a size where detail is meaningless.
YouTube asks for 800 × 800 pixels, square. It is then displayed as a circle, typically around 98 pixels across on a channel page and considerably smaller next to a comment.
So there are two numbers that matter and they pull in opposite directions. 800 × 800 is what you upload, so the image stays sharp on a high-density display. 98 pixels is what people actually see, so that is the size you should design for.
You upload a square and YouTube crops a circle out of it. Roughly 21% of the square’s area — the four corners — is discarded. Anything there is gone: a logo pushed into a corner, text running to the edge, the side of someone’s head.
The working method is to design inside a circle from the start, leaving a visible margin between the content and the circle’s edge. If your logo already exists as a square lockup, it probably needs a tighter crop and some breathing room added before it works here.
This is where most avatars fail, and the failure is predictable. At 98 pixels:
The test is straightforward and worth doing before uploading: shrink your image to 98 × 98 and look at it. If you cannot tell what it is, neither can anyone else.
PNG is the better default here. At 800 × 800 the file is small either way, and JPG’s compression artefacts cluster exactly around the sharp edges a logo is made of.
Three steps, in order:
Changing a channel avatar can take time to propagate — the old image may persist in some places for a while because it is cached. If the new picture does not appear immediately, that is normal and not a sign the upload failed.