Step 1- Choose how many megapixels you need.
A 3 megapixel camera is great if: you'll primarily be printing small, snapshot-sized photos or you'll mainly be snapping shots to use on the Web. A 4 megapixel camera is great if you're interested in printing 8"x10" photos or larger. A 5 or 6 megapixel camera is great if you plan on doing a lot of large-size prints and professional-quality work.

Step 2- Choose the adjustments you'll need to make.
A camera's features can be the real deal-makers. Features like optical zoom, telephoto or wide-angle shooting ability, auto and manual focus, aperture adjustment, and shutter speed adjustment all affect your camera's ultimate flexibility.

Step 3- Choose the type of battery you want.
Because digital cameras use a lot of power, many cameras use rechargable batteries. Otherwise, you may end up spending a lot on alkaline batteries.

Step 4- Choose the type of connections you want.
Nearly all digital cameras today come with a USB interface, for easy connection to a USB-capable PC. Other kinds of connections include video or A/V outputs on the camera and direct printer connections (for connecting to a photo printer without having to use a PC).