Underwater welding can be classified as dry welding, which uses sealed chambers, or wet welding, which is performed directly in water. Dry welding produces higher quality welds but requires more complex and expensive equipment. Wet welding is more economical but results in lower weld quality due to water's quenching effect. The underwater environment affects welds by introducing hydrogen that causes embrittlement and oxygen that increases porosity. Weld quality declines with increasing depth due to higher pressures. Proper welding equipment and techniques can help reduce these negative impacts.