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Minimum features
For general phototaking, get a digital camera with these features at the minimum:
Megapixels - enough to meet image quality and printing needs. Unless you make huge prints or crop a lot, six megapixels is more than adequate.
Automatic features - Auto focus, auto exposure, auto white balance.
3X - 4X optical zoom - digital cameras usually have both optical and digital zoom lens. Avoid cameras that have only a digital zoom.
LCD monitor - mini screen built into the back of a camera. Used to compose and view digital images and to access camera menus. LCD displays have improved considerably, but there are still times when it may not be viewable in bright light.
Compression - compression is a method of reducing the file size of a digital image. Purchase a camera that lets you change compression and quality settings.
Macro mode - for close-up photography of flowers, insects, coins, etc.
Automatic flash - Illuminates a subject when there is not enough available light. A pop-up flash can be more effective at reducing red-eye. If you take a lot of flash photography consider getting a camera with a hot shoe and purchasing an external flash.
Focus assist lamp - visible or infrared lamp that helps a digital camera focus better when taking photos in low light.
Removable media - you should be able to remove memory cards from the camera so you can use multiple cards if needed.