We consider a single copy of a pure four-partite state of qubits and investigate its behaviour under the action of stochastic local quantum operations assisted by classical communication (SLOCC). This leads to a complete classification of all different classes of pure states of four-qubits. It is shown that there exist nine families of states corresponding to nine different ways of entangling four qubits. The states in the generic family give rise to GHZ-like entanglement. The other ones contain essentially 2- or 3-qubit entanglement distributed among the four parties. The concept of concurrence and 3-tangle is generalized to the case of mixed states of 4 qubits, giving rise to a seven parameter family of entanglement monotones. Finally, the SLOCC operations maximizing all these entanglement monotones are derived, yielding the optimal single copy distillation protocol.