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The main difference between a ceramic capacitor and an electrolytic capacitor is that in a ceramic capacitor, two conductive plates are separated by a ceramic material, while in an electrolytic capacitor, two conductive plates are separated by an electrolyte and a metal oxide layer.
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Electrolytic capacitors will have polarity where as ceramic capacitor will not have polarity
Electrolytic capacitors do a very good job of bulk filtering, but they have poor high frequency performance due to distributed inductance. The ceramic capacitor has excellent high frequence response, and will often be used in parallel to the electrolytic to filter out fast rise time step changes in current demand.
Some capacitors are polarity sensitive; some are not. It depends on the design. Electrolytic capacitors, for instance, are polarity sensitive, while ceramic disc capacitors are not. You can generally tell, if the capacitor is marked with polarity signs, such as + and -, if it is or not.
Film capacitors cannot be replaced with ceramic or mica capacitors if used for analog signal processing. However, mica capacitors can be replaced with ceramic capacitors in general.
to protect a circuit from damaging
Ceramic capacitors can be used anywhere a capacitor having very low internal parasitic inductance is required. Most commonly they are used as powersupply bypass capacitors. They are also sometimes used for coupling capacitors for HF signal amplifiers.