There are two major divisions in camera types: film vs. digital cameras and SLRs vs. compact cameras. SLR camera stands for single lens reflex camera. Though the price of SLR cameras is continuing to come down, the cameras are still significantly more expensive than compact cameras. A cheap SLR body will cost at least $450, without a lens. Compact cameras can cost under $200. Depending on the size of your budget, the extra image quality may not be worth the additional cost.
Lenses
The biggest difference between SLR cameras and compact cameras is the ability to change lenses. SLR lenses detach from the body so that you can use different lenses, depending on what you are taking pictures of and how close they are to you. The attachable lenses will usually have much greater zooming capabilities than lenses on compact cameras. Compact cameras are restricted to the lens that is built into the camera.
Size
Compact cameras are significantly smaller than SLRs. Some compact cameras are small enough to carry around in a pocket while SLR camera bodies alone will usually be twice the size of a compact camera. Lenses for SLR cameras can be as large or even larger than the camera body. If the ability to easily bring the camera wherever you go is important, a compact camera is the better option.
Zoom
When you change the zoom on a compact camera, you have to use the electronic motor to zoom in or out. SLR lenses are separate from the body and use a ring that you turn to adjust the zoom manually. The manual adjustment is actually faster than the electric zoom. If you are taking pictures of sporting events or other activities that you need to quickly change the zoom, the SLR is a better option.
Image Quality
SLR cameras have a much larger image sensor than compact cameras do though they may have similar amounts of megapixels. The image quality suffers in compact cameras because the pixels are crammed too closely together. This results in interference which is exaggerated in dimly lit scenes.
Customizability
Beyond changing lenses, SLRs give you a greater range of options to customize the shots you are taking than compact cameras will. With an SLR, you can manually focus the camera as well as adjust the aperture, shutter speed, ISO and other settings. In addition, SLR cameras have the ability to use external flashes while most compact cameras can only use the on-board flash.
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