The description
environment conceptually is an itemize
-like environment, so a "list", used to list some items, enhancing their names and displaying their descriptions so that they are separated and indented from the normal text (hence enhanced), and more clearly visible.
\paragraph
is a sectioning command, thus indicating a division in your document, which can usually be used to insert some notes, or some small paragraphs which talk briefly about a specific topic. The spacing between the word(s) that start the paragraph (i.e. the ones between the braces) is bigger than the one used in description
. Mind that for long descriptions, these flow like the normal text and are not displayed in an indented environment.
I would go with description
, which is more compact and enhances the definitions, and usually never use the paragraph
environment, unless there are some remarks about the text above them that I want to attract the reader to.
EDIT
I'm adding an example
\documentclass{article}
\begin{document}
\begin{description}
\item[item1:] a somewhat long long description about your item and all about it and look how pretty it is displayed like this
\item[item2:] a somewhat long long description about your item and all about it and look how pretty it is displayed like this
\end{description}
\paragraph{item1} a somewhat long long description about your item and all about it and look how pretty it is displayed like this
\paragraph{item2} a somewhat long long description about your item and all about it and look how pretty it is displayed like this
\end{document}
