Cholesterol is a lipid produced only by animal cells and consumed through animal-derived foods, which can contribute to high blood cholesterol levels associated with heart disease. Plant sterols or phytosterols offer health benefits and are found in high-fat plants like avocados and nuts, without the same risks as cholesterol. To maintain healthy cholesterol levels, it is advised to focus on a low-fat diet while avoiding saturated and hydrogenated fats rather than eliminating dietary cholesterol.