Converging functions refer to sequences or series that approach a specific value as they progress, while diverging functions do not settle on a single value and can grow indefinitely or oscillate. The distinction is primarily made in the context of sequences and series rather than functions themselves. To recognize convergence, one can look for a limit that the sequence or series approaches, whereas divergence is indicated by a lack of such a limit. Understanding these concepts is crucial in mathematical analysis and calculus. The discussion highlights the importance of differentiating between the behavior of sequences and series in relation to functions.