Let us first of all assume this question is pertaining to drugs, as these terms are generally used in that context.
When one indulges in any form of intoxication, it is with the intentions of altering their mood or state of mind. When a person continues to crave that altered mood and seeks the drug for a quick 'fix', eventually making it their sole aim to acquire more, or regresses to a worse mood than earlier when 'sober', this is known as psychological addiction.
When an individual's health is affected by cessation of a drug - be it blood pressure or diabetic medication, antidepressants or legal or illegal intoxicants- that state is referred to as physical addiction.
When one indulges in any form of intoxication, it is with the intentions of altering their mood or state of mind. When a person continues to crave that altered mood and seeks the drug for a quick 'fix', eventually making it their sole aim to acquire more, or regresses to a worse mood than earlier when 'sober', this is known as psychological addiction.
When an individual's health is affected by cessation of a drug - be it blood pressure or diabetic medication, antidepressants or legal or illegal intoxicants- that state is referred to as physical addiction.