Digital cameras come in a variety of forms, from point-and-shoot pocket cameras to advanced digital SLRs. There is no right or wrong type, though a specific one may be best for you and your photography.
Simple point-and-shoot digital cameras can give surprising quality when they have the right lenses and sensors. Because they are totally automatic in focus and exposure, they just have to be pointed at a subject and clicked. They have limited capabilities for controlling the image, although even very inexpensive cameras often have white balance controls. Some are exceptionally compact, able to fit easily into a shirt pocket, making them ideal cameras to keep at hand so you won't miss a great photo opportunity.
Advanced point-and-shoot cameras are similar in that they mostly rely on automatic controls; however, this group tends to add special features to make the cameras a little more flexible. Such features include exposure compensation, more white balance controls, limited manual settings, and more. Still relatively inexpensive, these cameras can be a good introduction to digital and are perfect for the families of serious photographers.
Interchangeable-lens, digital SLRs offer all the controls of a 35mm SLR, including lenses that give you a wealth of focal-length possibilities. These cameras are definitely bigger than the other digital cameras. They include complete and extensive photographic controls, the best in image-sensor and processing technology, high levels of noise control, and more. The LCD panel on the back of an SLR can be used only for reviewing images, since the sensor cannot provide "live" images due to the mirror design.