If you are not sure about what digital camera to buy then you are at the right place. With a large number of models available in the market, often with a very little difference, choosing the right digital camera can be overwhelming. In order to pick the right one, you should consider what features are important to you and then get the once that has most features and under your budget. Here are the most important factors to consider while buying a Digital Camera.

Type: There are 4 basic different types of digital camera available in the market today, each one with their on pros and cons.

Point and Shoot: These are the smallest and often the cheapest of Cameras. They have all the basic features like a zoom lens, image stabilization, large LCD screen, face detection, HD video recording and a cheap price range. On the down side image quality of these cameras is not the best, specially in indoor or low light conditions. Also these cameras cannot be used in a variety of conditions like Sports etc. due to it''s shutter lag and slower aperture. They might also lack manual controls and even a view finder. These cameras are great for casual / family / party snapshots and travel pictures. But don''t expect too much out of the smaller / cheaper point and shoots.

SLR Like: These are slightly larger than the above. They usually have a very long range up-to 36x Zoom. They also have a lower shutter lag, better manual controls, better image quality, RAW image support, swivel LCD screens. The size maybe larger than point and shoots but they are still smaller than SLR cameras and also much cheaper. These cameras are best used for enthusiast photography for e.g. taking photo shots, macro pictures of bugs, flowers etc., kids sports pictures or distant objects. The image quality is still not the best among all digital cameras. Also since the lens is attached you cannot change it later.

Interchangeable Lens Cameras: They are a new breed of cameras. They do not have a mirror as in DSLRs (explained below) but still have a larger APS-C sensor (23mm) and the lens can be changed. This allows for excellent image quality at the same time keeping the camera size low. They are best if you want great image quality, versatility in a smaller package.

Digital SLRs: Before SLRs were invented, cameras relied on Twin Lenses, one for composing and the other for taking the image.  SLR stands for Single Lens Reflex which relies on only one lens to capture the image as well as show the image while composing the picture. This is accomplished using a mirror that comes between the lens and a sensor. When the picture is being composed the light goes through the lens and reflected by the mirror through a series of prisms and the subject can be seen through the viewfinder. When the shutter button is pressed, the mirror is lifted up quickly and the image is captured on the sensor through the same lens. Since the lens can be changed, DSLRs are the most versatile of all cameras. Also the sensor is much larger than point and shoot cameras up-to 35mm in size which creates the best images of all the cameras. Due to the complex nature of the camera and lens system, they are also the most expensive of all.

Image Quality: If image quality is of prime importance then you should go for a Digital SLR Camera or a Interchangeable lens camera. A smaller and low end point and shoot is almost useless in low light / indoor scenes.

Megapixel: Even the cheapest digital cameras now come with 14 or 15 megapixels. That is plenty of resolution for almost any situation. Therefore Megapixel should not be stressed too much while choosing a camera.

Optical Zoom: Optical Zoom allows you to get close to the subject. Most point and shoots come with 3x optical zoom. Some compact digital cameras now have up-to 16x zoom. However if you need to zoom more, they you will need a SLR Like camera which have up-to 36x zoom.