what would be the proper way to set up projectiles for a pixel art game? Thanks for the help in advance and please be as detailed as possible as I’m still quite new 
Use an engine that actually supports a proper 2D pipeline. Godot is good at it. So are many others.
In unreal, you just have to use the 3d components as you would for 3d items, and place a sprite material on top of a mesh inside of the projectile I guess.
I only have any experience with unreal and it’s with blueprints 
, since I’m using paper 2d could I spawn it at the end of the characters animation i.e character pulls back bow then creates arrow sprite and if so how should I setup the blueprint?