Your character is the player you use as you progress throughout the game. When first joining the game, you enter the character creation screen (Shown to the right.) This is where you edit the look and race of your character before you start. After creating your character, you start out as level 1. You can then level up and become stronger. You can also change the look of your character at the south city clothing shop, after speaking to the hair styler, however your character's race is permanent, unless you were to use the Dragon Balls.
Each race has their own advantages and disadvantages. The race you choose affects your character in multiple ways. Some being the way you look, your transformations, what NPC boosts you can get (if at all), and the strength of your base form.