On a lighter note, the question can be answered in a manner, suggesting the difference between ways and types or we can simply say that there are two ways of investing money i.e legal and illegal, if we further bifurcate this then we need to deal with the types of investment. 

Starting with illegal ways of investing money, there are few types: insider trading, equity crowdfunding or cheat funds, and bitcoin. 

Insider trading is mainly done by exchanging information or shares. an improper and unfair way to get returns. This procedure can get one into serious issues with legal proceedings. Equity crowdfunding is a method of raising funds for a company and promising investors higher returns. Such scams are controlled by the SEBI Securities and Exchange Board of India. 

Lastly the bitcoins, currently the trend is in favor of bitcoin but the officials of the state do not allow it to perform transactions in bitcoin. The proposal is under scrutiny with some changes as per the policy and protocols of the government. Hence bitcoin is not an option to invest in, presently, the circumstances do not allow it. 

Meanwhile, there are methods where one can invest money legally, for which the government grants permission under certain clauses and policies. The types of investment mentioned are direct equity, mutual funds, fixed deposit, recurring deposit, employee provident fund. 

Direct equity: It refers to investing in stocks and is considered the most potent procedure of investing money for better returns. Here the investor needs to buy or purchase the stock or shares of a company that will benefit the investor when the company will grow and develop. The investor here gets the opportunity to go for genuine companies and lessen the chances of fraud. 

Mutual funds: Over the past few years there has been a consistent growth of popularity amongst the people regarding mutual funds. A mutual fund gathers investment from different investors and individuals having a common achievement to achieve. The collected sum of the amount is managed by the fund manager. Mutual funds are divided into equity, debt, and hybrid funds. The risk factor is controlled by the performance of the market. 

Fixed deposits: the process is carried out by banks and other financial institutions. Where the investor can deposit a lump sum for a while with predetermined returns. The policies are made by RBI under prevailing economic circumstances. 

Recurring deposits: The investor needs to deposit an amount of money, monthly, over the determined term. Upon maturing the investor will withdraw with added interest as per the terms and norms. 

EPF employee provident fund: employee provident fund allows salaried persons to get a tax break under the law Section 80C of Income Tax Act 1961. EPF deducts a percentage of the salary and gets the return after retirement.