When all atoms that make up a substance are the same, then that substance is an element. That means that elements are made of only one kind of atom. Other substances can be made up of other elements, for example. hydrogen + oxygen = water
An atom is the basic particle out of which all elements are made. The electronic configuration (arrangement and organization of electrons within the atom) decides the type of element. This is why Iron is different form Gold, although both comprise of atoms.
Atoms are capable of forming chemical bonds and become compounds.
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