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Tools

Tools are a loose association of items that are used to perform the various non-combat tasks involved in Terraria gameplay, such as construction and exploration, among many others. Tools are generally wielded via the âš’ Use / Attack key while they are held as the active hotbar item; though they are differentiated from weapons, whose primary use is instead to inflict damage upon enemies. Tools are also differentiated from accessories, which provide passive abilities, while tools are used proactively.
Pickaxes, axes, and hammers are tools that are essential at all stages of gameplay for their ability to precisely dismantle world tiles, like placed Blocks, background Walls, plants, or placed furniture, and convert them all to collectible inventory items for re-placement in other locations, or for other uses, such as crafting. They also double as basic melee weapons, although they generally inflict far less damage than actual weapons of corresponding tiers.

Other important tools include the Magic Mirror, which teleports the player back to their spawn point; Hooks and Mounts, which aid travel; Keys, used to open locked chests; the Bucket, which transports liquid; the Bug Net, used to catch Critters; the Wrenches, used to construct mechanisms; and the Shadow Orb, Fairy Bell, and Wisp in a Bottle, which summon light-providing entities that follow the player. See below for other examples.

(Quoted From http://terraria.gamepedia.com/Tools)

Pickaxes and Drills are used to free placed blocks or furniture for collection. When used on blocks, this is often referred to as "mining" or "digging". Their tier determines which types of blocks they can mine, as well as the number of hits it takes to remove each block type (see Pickaxe and Drill for those details). Drills function identically to Pickaxes, but with an alternate animation and sound effect. All tools to the right and below (and including itself) of the Cobalt Pickaxe are Hardmode, with one exception. Mobile only.png Users can obtain the Drax pre-hardmode by locating one in a Shadow Chest, provided you have a key.

(Quoted From http://terraria.gamepedia.com/Tools)

Pickaxes and Drills

Meteor Pickaxe

Kairoseki Pickaxe

Desert Pickaxe

Tainted Pickaxe axe

Cursed Pickaxe axe

Desert Hamaxe

Axes and Chainsaws

Axes and Chainsaws are used to harvest large plants like Trees, Cacti, and giant glowing mushrooms (Wood blocks are removed with a pickaxe instead). Chainsaws function identically to Axes, but with an alternate animation and sound effect. Hamaxes function as both Axes and Hammers.

(Quoted From http://terraria.gamepedia.com/Tools)

Hammers are used to free background walls for collection, to destroy background walls which cannot be collected, to shape foreground blocks to create slopes and half-tiles, and to shape platforms to create stairs. They are also used to destroy Shadow Orbs and Crimson Hearts. The Pwnhammer, Hammush, and The Axe can additionally be used in Hardmode to destroy Altars, which triggers the spawning of new Hardmode Ores.

(Quoted From http://terraria.gamepedia.com/Tools)

Hammers

Ichor Bone Crusher

Cursed War Hammer

Cursed Fishing Hook

Ichor Pole

Fishing Poles

Fishing Poles are used for Fishing.

(Quoted From http://terraria.gamepedia.com/Tools)

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