What are the different types of cryptocurrency?

As a keen observer of the cryptocurrency landscape, I am curious to know about the diverse range of digital assets that fall under the umbrella of cryptocurrency. Could you elaborate on the different types of cryptocurrencies available today? Are there any particular characteristics that distinguish one type from another? Perhaps you could categorize them based on their use cases, market capitalization, or underlying technology. Additionally, I'm also interested in knowing about the popularity and adoption rate of each type, as well as any potential risks or limitations associated with investing in specific cryptocurrencies.