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Where to Stay in Mykonos

I am going to Mykonos with 2 friends. We are in our mid-20s. We want to be on the beach during the day and enjoy the nightlife. What area is best to stay? We will be there for 5 nights in August. We are looking to spend around 200 Euros, possibly more if well worth it. Thanks!

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Brittany - The Poseidon Hotel is located very near to Little Venice and is an excellent place to stay. The nightlife in town is incredible and, of course, Paradise Beach is Amazing. Nothing really starts to happen out at the beach until about 10:00 P.M. and continues all night - Try not to have too much fun !!!!
In town you can rent 4 wheelers to go out to the beach -