2D sprites in 3D space?

Question

How can I draw a 2D sprite to look like it's at a particular placement in the 3D world?

My goal is to use this as loose items in the world.

Minecraft Example: https://lh6.googleusercontent.com/-HMk5tW_cI-Y/TiYx71XkwtI/AAAAAAAAAZQ/jeaTfiMW1Ow/2011-07-19_20.26.18.png

Answer 1

You'd render a quad in 3D space, using the sprite as the texture for that quad. You can billboard that quad so that it always faces the player (this is what Minecraft does for its non-block inventory items when they're on the ground, if I recall correctly).

Answer 2

Traditionally, this is done by rendering a single quad with the sprite applied to it as a texture. The quad is generally rotated so that it always faces the player (usually only around the vertical axis).