Function of Categories and Tags

What is the function of Categories and Tags within WordPress and how have you
utilised these? 

Categories and Tags use to be one in the same with WordPress, but since being separated, it now allows bloggers and readers a clearer method of search versatility, using Categories as a high level menu system, or tags for more granular keywords.

Categories are used to group like posts together. For example if you have a fashion blog, you may have a category for tops, and another for socks. Categories will allow users to search specifically for blog posts in relation to socks.

Tags are used much like hashtags on Instagram. Keywords are used to identify key parts of the posts content and to help draw in readers.

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