MakeGIF is a super easy way to save YouTube videos, or any HTML video on the web, as an animated GIF image.
While you are a web page that has embedded YouTube or any HTML video, just open Make GIF from the Chrome toolbar and it will auto-detect the embedded video clip.
Click the Record button and play the video. When you are done, click Stop and a GIF will be generated.
You can navigate frame by frame and delete the ones you would not like in the final image. You also have an option to add overlay text to your GIF or reverse the direction of animation.