Why the kinds exist at all
The machine has only bits. The kind is the instruction for reading them: as a whole number, as a fraction, as characters. Two values can be the same bits read two ways, which is where the confusion between 4 and "4" comes from.
The size question
Whole numbers in this language grow as needed, so a huge count is fine. Decimal numbers have a fixed number of bits, so they carry a fixed precision and a limit. Knowing which kind you hold tells you which of the two worries applies.