There are two main types of hair transplants: follicular unit transplantation (FUT) and follicular unit extraction (FUE). In FUT, a strip of scalp is removed from the back of the head, and the hair follicles are then extracted from the strip and transplanted to the scalp. This technique can be more cost-effective, but it results in a linear scar on the back of the head. FUE, on the other hand, involves individually extracting hair follicles from the scalp and transplanting them to the balding area. This method typically results in less scarring and a faster recovery time.