Proofreading involves carefully re-reading a document multiple times to detect errors in spelling, grammar, punctuation, and consistency, while editing focuses on revising content for clarity and appropriateness for the audience. The top tips for effective proofreading include focusing on one type of error at a time, reading aloud slowly from the bottom of the page to the top, taking breaks between short editing sessions, and proofreading the document at least three times, with a partner for another perspective.