Since the Horizontal and Vertical Type tools create a unique text layer, you can use layer styles to make all sorts of unusual and interesting changes to your type. The significant advantage of using layer styles with your text (as opposed to using type masks) is that your text remains editable.
When choosing a font, it's a good idea to go with bolder sans-serif typefaces. This way, your type is more likely to remain readable after you've applied the style. Take a look at the Text Layer Style Gallery to see just a few examples of the different styles available.
To apply a layer style to type