Which key to choose
RSA 2048 is what every receiver verifies. Ed25519 keys are short and fast but not yet verified everywhere, so publish one next to an RSA key and sign with both (RFC 8463). Use RSA 1024 only if your DNS host cannot store a record over 255 characters.
Rotating keys
Publish the new key under a new selector, switch your mail system to sign with it, wait a few days for messages in flight, then revoke the old selector by publishing v=DKIM1; p=. EmailSecOps tracks each selector's key and reminds you once it has seen the same key for six months (keys your provider hosts behind a CNAME are rotated by the provider and left out).