Elevation data obtained by the laser altimeter describes the real lunar topography. Digital elevation modeling and data preprocessing were carried out based on source data published by China National astronomical observatories. The Feature Points Dynamic Supply Method(FPDSM) was proposed. The whole craters were identified on the moon and which characteristic parameters were calculated. Lips details can be distinguished. Light noise of image data and the difficulties to identify irregular boundary of lunar craters were reduced. Number of craters in designated areas were counted and so does the statistic distribution. The Feature Points Dynamic Supply Method was verified from three ways: the relationship between craters density and geological age ,and NASA’s statistical results of diameter-frequency, and the data available of some well-known craters. The maximum measurement error of pit center position and diameter are 15.63% and 4.39%. For the angle between the major diameter of fitted ellipse of pit lips and local north direction ,the neighboring pits have the same or similar value.