As its name suggests, this type of cancer affects the production and function of your blood cells. This type of cancer starts in bone marrow which is the integral source of blood production. Stem cells in your bone marrow mature and develop into three types of blood cells: red blood cells, white blood cells, or platelets. In case of cancer, the blood production process is interrupted due to the growth of an abnormal type of blood cell. The various types include Leukemia, Lymphoma and Myeloma.