Why is understanding the difference between the old covenant and the new covenant important for Christians?

The distinction between the old covenant and the new covenant is crucial for Christians as it illuminates the nature of our relationship with God. The old covenant, characterized by the law given through Moses, demands perfect obedience, which none can achieve. In contrast, the new covenant, established by Christ's sacrificial death, provides grace and righteousness as a gift. This transition underscores the beauty of the gospel, where believers are not required to fulfill the law but are credited with Christ's perfect righteousness, enabling them to live in freedom and joy in their Christian walk.