What does it mean to collect coin by "Type"?

A Type Set is a coin collection based on having a single example of each coin design, as opposed to collections consisting of all dates and mintmarks within a single series, such as Buffalo Nickels.    Within Type collecting, there is a variety of methods to build a set.  A Type Set might contain the designs of only one denomination, or even one series.    Another method would be to create a complete Type Set consisting of every design for of every denomination.  Some sets might include or exclude gold coins, or modern coins, or coins deemed too ugly.   Beyond the premise of having only one example of each type, there really are no limits.   Some people might think of minor varieties within a coin series as a distinct Type, while others would lump even major design changes together as a single type, and therefore only acquire a single example for the collection.   Many collectors start with the major Types as outlined in: A Guide Book of United States Coins, also known as the “Redbook.

What are the benefits of collection by "Type"?

Collecting coins by Type allows a collector to maximize the variety of coins for the money spent.  Instead of having 100 coins of the same basic design, for instance Kennedy Half Dollars from all the mints and all the years, a collector can have 100 totally different coins based on the set goals.    This helps keep the pursuit of coins interesting, not only for the collector, but also the collector's friends and family and peers who are shown the coins with great pride.   Variety helps prevent boredom and burnout.   Some series collected by date you simply hit a financial brick wall, where certain dates just cannot be purchased within your budget.   For Type collectors, most series have a mixture of key dates and common dates, which allow for the design to be purchased affordably (or not), depending on budget.

Below you will find 155 coins that I would consider a complete US Type Set, with Major varieties.     I use an expanded version of this list for my own Type set, which includes additions such as bullion coins, colonial coins, territorial coins, patterns, tokens, medals, confederate coins, and classic commemorative coins.   

The below list is certainly a great starting point for your own Type set, and you can trim it down to expand it as you see fit.   Many of these coins below I will never be able to own, as some are quite expensive and some are quite rare, so keep realistic budget contraints in mind when setting your set goals, and make sure to rebalance those goals yearly as your collecting interests and abilities evolve.