You need a unique label whether it is your artist name, record label, group name, or your own alias. This is a very important marketing decision. The name will then later be the brand that defines what the label sound is, or what the artist produces — no wonder some producers have multiple aliases to separate their artist works from each other.
It’s quite OK to use your own real name as the artist name. Others like a proxy name, that’s fine.
To get a good name, first do a search based on your candidates. It’s not good to take an existing artist or label name. Use Discogs and any big online music distribution system to find out if the name is already taken. Even a small variation — let’s say Prinse — is not considered Ok. It might even lead to a law suit. The only way to really legally protect a name is to get a trademark on it, and this across multiple markets/countries, so it’s very expensive. Maybe that’s one reason why using one’s own name is somewhat legally valid, as they can’t take that from you.
The other way to find out about names is to do a web search and see what comes out. If the name is associated with something negative in a language, or even in English, then don’t use it. I recently saw a spam email about a perfume called Fracas, which was funny, as fracas means a brawl, a noisy fight….
The other input from the search is to see if you get any valid hits pointing back to your site or if you get generic hits. The more unique a name is, the better chance it will point at just the material associated with the record label, artist, or group. So that’s why it’s good to take a name and somewhat twist it, style Curve becomes Currve. Or combine the words together, such as what we did with PlanetoidPark, to make it unique.
Personally, in this internet age, I do think unique names will be more and more important, for quick lookups and finding material.