The very simple answer for what kind of paint do you use for a mural is that... you can use any paint for a mural.
The real question is: How long do you want your mural to last, and what are the conditions surrounding the mural?
The biggest difference between paint longevity is whether the base of the paint is oil or water.
Elastic or latex paints, which are an oil base, are vulnerable to cracking and peeling. This breakdown happens even quicker with direct sunlight, general weather conditions, or even just time. These paints tend to be less expensive though, and might fit your budget much better, esepcailly with the quantity of paint needed for a mural. I would venture to use these types of paints more indoors, and on a well-prepped and primed wall.
For outdoor murals, I lean towards 100% acrylic water-based paints. Not half latex/half acrylic. 100% acrylic. These paints keep their bright colors longer (even in direct sunlight and over time), they dry super fast, and they are naturally water-resistant. Sounds amazing right? Yeah, well, they cost more. The whole budget might be shot on a few cans of paint, or the colors of the mural reduced down to a few color options.
Painting an outdoor mural, I always prep the wall with sanding or water-pressure washing or even sand-blasting (which, is an absolute mess). And then, I apply a silly little coat of Zinsser Bulls Eye 1-2-3- Primer (yes, even if the paint you're using has a primer in it). Then, I use a 100% acrylic water-based paint (like, Behr).
When it comes to top coats, technically you don't need one with acrylic paint, although it might be helpful with the longevity of an oil-based paint. If you are worried about tagging or vandalism, I would definitely go with an anti-graffiti top coat, no matter what base of paint you are using.
There you have it! For the sometimes conovluted answers out there to the question: what kind of paint do you use to paint a mural? You can use any type of paint you want to create a mural, just keep in mind if it is indoors or outdoors, and if you want the final look to include some natural weather and breakage in a few years. Perhaps with the right primer and top coat, an oil-based exterior mural might last a little longer.
Hope this helps!

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