Is there a difference between libraries and document folders in Sharepoint 2013?

I am new to Sharepoint and trying to decide if I should use "documents" folders or "library" folders. As far as I can tell, there is no difference. Am I missing something?

Hi,
Use Document library if you need to hold all your documents. and you can create folder inside library also. 
Please read this http://office.microsoft.com/en-in/word-help/sharepoint-document-libraries-i-introduction-to-sharing-files-RZ010234528.aspx?section=3
Please remember to click 'Mark as Answer' on the answer if it helps you

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