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https://steamcommunity.com/discussions/forum/1/6670425060423825787/
Since you can't upload anything over 5MB right now, your stuff is going to look bad unless you make it small dimension wise.
HD video uses millions of colors while gif is limited to 256 (which is partly responsible for the texture effect you notice). Any automatic conversion will lead to the blurriness you noticed. You need to prep what's going in and you need to polish up what comes out. Since explaining how to do all that would turn this post into a full blown tutorial we're back at: