Hard ModeHard Mode is for the confident gamer. Has everything in Normal Mode, but with more restrictions on inventory, energy, harder mobs, random events that often lead to battle, dungeons and raids, and more. With the higher difficulty comes some good: Better and rarer armor, item sets, new jewelry slots to equip for added stats, new skills such as stealing and pickpocketing (be careful how NPCs react to this! Can't sell stolen items in shops), black market, guilds, second profession, and a special tag next to your username to signify you're playing in Hard Mode
To move onto God Mode, see Jack in the town center of Kutina. He will give you a few tasks, and once you have completed them to his satisfaction, you'll be upgraded to Hard Mode. You will lose your level and stats! Leveling will be harder in God Mode, along with many other changes. You will keep your gold and inventory.