Potential energy is the energy possessed by an object by virtue of its state nad example is water at the top of the waterfall before the precipice. Kinetic energy is the energy possessed by a body by virtue of its movement and example is flowing water when falling from a waterfall. The types of kinetic energy are translational kinetic energy, rotational kinetic energy. Potential energy types are gravitational potential energy, chemical potential energy, elastic potential energy, nuclear potential energy, electrical potential energy.