What are the different types of cryptocurrencies?

Could you elaborate on the various types of cryptocurrencies that exist today? Are there any specific characteristics that distinguish one from another? For instance, are there any cryptocurrencies designed for specific purposes, like anonymity or scalability? Are there any cryptocurrencies that are more decentralized or have a more robust blockchain technology? Furthermore, what are the key differences between the mainstream cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin? And how do these differences impact their use cases and market valuations? Understanding the diverse types of cryptocurrencies is crucial for investors and enthusiasts alike to make informed decisions in this rapidly evolving field.