There are three main types of steam traps: mechanical, thermostatic, and thermodynamic. Mechanical traps include ball float and bucket traps, which operate using the density difference between steam and condensate. Thermostatic traps sense the temperature difference, while thermodynamic traps use the difference in thermodynamic energy. Each trap type has advantages like continuous discharge or high pressures, and limitations such as steam loss or inability to remove condensate quickly. Proper trap selection depends on the application and conditions.