Look at the mound the buffalo is standing on. Type 1 is a mound, type 2 is a platform. Also, there is more unevenness and details in the type 1. It was harder to strike with full details, so they reduced the details, the relief, and they were able to strike with full detail and lower pressure. Given that Nickel is harder than most coin metals, that was important.
Type 1's are nearly impossible to find with full details (unless they are Matte Proof, hiding as business strikes). Finding a type 1 with full strike and nice color or eye is nearly impossible. When I was a collector, I went through about 3000 type 1 coins before I found one I liked. Nice rainbow toning. It took years.