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Almost all Damselfish can be considered reef-safe, except some larger and more aggressive Dascyllus varieties. Some Damselfish also host in anemones like clownfish. They are however, difficult to catch once you put them in an aquarium and become aggressive. Hence, you need to be careful while keeping these.
An interesting feature about Damselfish is that they change gender as they grow larger and older. Small Damselfish are ungendered. Eventually, they become males if no males prevent them from doing so. One or sometimes two males live with a female and guard over the eggs. Females are the largest fish and dominant over the males and juveniles. They will not allow other females into an area they have claimed as their territory without a fight. They may not allow new males or juveniles, either. Aggression increases with each change.
Here are the few varieties of Damsels that you can keep in your aquarium:
Azure Damsel (Chrysiptera hemicyanea)
This is a beautiful fish with neon blue body and a gold underside and caudal fin, which would look absolutely stunning in your aquarium. This is easy to care for and does best on a good diet. However, this is fairly aggressive. So you have to choose tank-mates carefully. They can grow up to a size of 10 cm (3.9 in).
Blue damsel, Orange tail damsel (Chrysiptera cyanea)
An orange tail indicates breeding success. The males have orange tails while the females do not. This fish is hardy and aggressive like other Damsels but are easy to handle. They grow up to 8.5 cm (3.3 in).
Domino Damsel (Dascyllus trimaculatus)
Also known as the three spot Damsel, this fish is easy to care for, but is also very aggressive. The fish is black except for three distinct white spots that fade as the fish ages. They can grow up to 14 cm (5.5 in).
Fiji blue devil damsel (Chrysiptera taupou)
This striking blue damsel is one of the most popular fish. Like other damsels, it is very hardy and very aggressive when mature but are easy to care for. They grow up to a size of 8 cm (3.1 in).
Four stripe Damsel (Dascyllus melanurus)
As the name suggests, they have four black stripes on their body. It is a perfect beginner marine fish as it is very handy. This fish is highly territorial and is best suited for a semi-aggressive to aggressive tank but are easy to handle. They can grow up to 10 cm (3.9 in).
Garibaldi Damsel (Hypsypops rubicunda)
These are temperate fish and require cooler water. They are much larger than most other Damsels. Their care level is easy to moderate. They grow up to 30 cm (11.8 in).
Jewel Damsel (Microspathodon chrysurus)
These are among the largest and most aggressive Damsels but easy to keep in the reef tank. They can grow up to 20 cm (7.9 in).
Longfin Gregory (Stegastes diencaeus)
It turns brown and becomes highly territorial as it ages. Though they are easy to handle, they should be kept with caution in the aquarium. They can grow up to 12.5 cm (4.9 in).
Marginated Damsel (Dascyllus marginatus)
The Marginated Damsel is noted for blue fins as well as the yellow head and white body. This fish is hardy like most Damsels and is also highly aggressive when mature. They are however, easy to handle. They can grow up to 6 cm (2.4 in).
Talbots damsel (Chrysiptera talboti)
This damselfish is somewhat a little more delicate than other and should be handled moderately. It does best in small groups in large tanks with good water quality and an SG of 1.026. Feed on a good diet for best results. They are fairly peaceful.