Click on your Photoshop icon and open your image. Go to "Image" then "Image Size" and resize your image. Your image shouldn't be larger than 500-by-500 pixels. If necessary, double-click on your image and re-crop it. Navigate to "Filter" and "Sharpen." This will hone the quality of your image.
Pixelate your image by going to "Image," "Mode" and "Indexed Color." Select "Local" and "Adaptive" for the pallet. Select "3" for the colors. Set your dirther setting to "diffusion" and your dirther amount to "50%."
Go to "Image," "Mode" and "RGB Color." This will change the color back to RGB (red, green, blue) mode and you will have your animated pixelated image. All color images have hues of RGB in them.
Save your newly created pixelated animated image by clicking on "File" and "Save for Web." Make sure you select "GIF" before you click "OK" to save.