Type-1 Hypervisor : It acts as a lightweight OS and runs directly on the host system. A base server OS is not required, and direct hardware access is available. Its example includes VMware ESXi, Citrix XenServer, etc.
Type-2 Hypervisor : It cannot run directly on the underlying host system, but can run as an application layer on a host system, similar to other computer programs. Its example includes VMware player or parallel desktop, VMware Server, etc.
Advantages of using Type-1 over Type-2 Hypervisor :
It is more secure to use type-1 hypervisors since they do not rely on the underlying OS, unlike type-2 hypervisors. The type 2 server also loses some efficiency, performance, and speed due to this dependency. So, if you're under attack, a type-1 hypervisor will give you better protection than a type-2 hypervisor.