What is the difference between Custom Setting Type "List" and "Hierachy"?
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What's your use case? One will fit better than the other.
Hierarchy custom settings can be configured at varying user specificity levels under a single name; the platform will look for the most specific configuration first, then fall back / inherit to the least specific:
Hierarchy custom settings are easily retrieved in Visualforce:
List custom settings have user-independent values, retrieved under multiple names. For example, you could use several configs to hold the credentials for a web service callout so that you can swap the endpoints:
List custom settings need to be accessed using a controller if you want to avail them on a page, for example