If you have a Compass equipped, you will see a direction indicator at the top of the screen. You can also “use” your Compass to place Waypoints in the world to help you keep track of useful locations.
Each map square measures 1/4km by 1/4km. Generally speaking, most map squares will have a Point Of Interest (POI).
Map aligned with release v0.5.5 onwards.
Map with Points of Interest
Click to enlarge…
The game world is large, so to help you navigate, look for compasses.
When you have a compass, equip it (in your Hotbar) and immediately you will have a direction indicator appear at the top of the screen.
You can also “use” your compass to add a Waypoint where you are looking. To use the compass, if your compass was in Hotbar slot 1 for example, pressing 1 would place a waypoint.
You can remove a waypoint by looking at it, and “use” your compass.
Pressing shift when you “use” your compass gives you the option of removing all waypoints.
Waypoints will appear on your direction indicator, and in the game world. If you don’t want them to appear in the game world (and only on the direction indicator), press Tab→Features and you can turn Waypoints off. They will remain on your direction indicator.