Traction lifts use ropes and motors to pull the elevator car up shafts using counterweights, while hydraulic lifts use fluid-filled pistons to push the car up. Traction lifts are used for mid and high-rise buildings over 8 stories tall and can travel faster, while hydraulic lifts are used for low-rise buildings under 8 stories and travel more slowly. The document also provides details on the components and machine room requirements for traction and hydraulic lift systems.