There are three main types of blood cancers: Leukemia, a type of cancer found in your blood and bone marrow, is caused by the rapid production of abnormal white blood cells.yeloma is a cancer of the plasma cells. Plasma cells are white blood cells that produce disease-and infection-fighting antibodies in your body. Myeloma cells prevent the normal production of antibodies, leaving your body's immune system weakened and susceptible to infection.