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avatar
An artificial figure or image that represents a user in a virtual environment such as a computer game or an internet forum.
Für das neue Online-Spiel habe ich mir einen coolen Avatar mit blauen Haaren erstellt.
For the new online game, I created a cool avatar with blue hair.
The meaning is easy to recognize from context. If people are talking about computers, games, or the internet, it means the digital figure. If they are talking about religion or India, it refers to the deity.
In diesem Forum kann jeder seinen eigenen Avatar gestalten.
In this forum, everyone can design their own avatar.
In a digital context, you can 'erstellen' (create), 'auswählen' (choose), 'gestalten' (design), or 'ändern' (change) an avatar.
Ich möchte meinen Avatar ändern und ihm eine neue Frisur geben.
I want to change my avatar and give it a new hairstyle.
In the religious meaning, a genitive construction or the preposition 'von' (of) is often used to express belonging to the god.
Manche glauben, Kalki sei der letzte Avatar Vishnus.
Some believe that Kalki is the last avatar of Vishnu.
character
'der Charakter' and 'der Avatar' can both mean a figure in a fictional or digital world. 'der Charakter' is more general: it can be a character in a film, book, play, or game. 'der Avatar' is more specific and belongs to virtual environments. It is the figure or image with which a user appears in a game or on the internet. The words can be confused when talking about computer games. An avatar is often your own digital representative; a character can also be someone else in the story.
Für das Online-Spiel habe ich einen Avatar mit blauen Haaren erstellt.
For the online game, I created an avatar with blue hair.
Im Film verändert sich der Charakter am Ende sehr stark.
In the film, the character changes a great deal at the end.