There are many great places to snorkel along the "Amed" coastline, but this is, in my opinion, the best area to stay in.
Lipah beach has just the right mix of snorkeling, restaurants and a few basic shops. There are some nicer spots to snorkel (Selang beach), but you'd have to get on a motorbike if you want to buy a beer .

I found the best spot to be the area at the eastern end of the beach, with plenty of coral and marine life within a few meters: you might find yourself sucking your belly in to get over over the first coral that you encounter on your swim out!
So what can you see? Titan Triggerfish, Trumpet fish, Jacks, Moorish Idols, Parrotfish, Houndfish, Damsels, Anemonefish, Blue-spotted Stingrays etc. etc. - one day I was even surrounded by Dolphins.

• Ease of Access: Straight off the beach
• Hazards: Coral almost immediately in the shallow water, occasionally tiny stinging jellyfish, currents (you might get a workout if you don't use fins), I very nearly stood on a stingray, so I guess that's a hazard too!
• Visibility: Medium: Better in the early morning
• Best time to go: Early morning in the dry season
• Water Temperature: 27 - 30 C°
• Highlights: Corals, Reef Fish within easy reach of the shore