What is favicon.ico?
A favicon (short for favorites icon), also known as a website icon, shortcut icon, url icon, or bookmark icon is a 16×16, 32×32 or 64×64 pixel square icon associated with a particular website or webpage. A web designer can create such an icon and install it into a website (or webpage) by several means, and most graphical web browsers will then make use of it. Browsers that provide favicon support typically display a page's favicon in the browser's address bar and next to the page's name in a list of bookmarks. Browsers that support a tabbed document interface typically show a page's favicon next to the page's title on the tab. Some programs allow the user to select an icon of his own from the hard drive and associate it with a website.

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How to design favicon images?

1. Design your favicon using Adobe Photoshop or any other image editor. The image should be square-dimensioned (width = height), and preferably of width or height around 100px. You can have a normal graphic or one with transparency.
2. Upload the image using the simple upload control and download the favicon.ico file.
3. Save this favicon.ico in the root folder of your website.
4. Alternately, you can save your favicon.ico in any folder in your website, or in an external location, and link to your web pages using link tag.

   <link rel="Shortcut icon" href="path to your favicon.ico">