There are many ways to create a gif image. Below are some of the methods we use to create GIFs for GIFCOP.
Free software for your computer
Screen, webcam and sketchboard recorder with an integrated editor.
Instagiffer is an okay free tool that converts local video files or YouTube videos into Gif format without losing quality. There are some bugs in this free software which make it pretty useless, especially if you are trying to capture a screen.
A free and easy to use option is LICEcap by Cockos Incorporated.
Quick and easy installation
Once installed you will be able to drag window to record a GIF.