Two common methods of multiplexing are TDM or Time Division Multiplexing and FDM or Frequency Division Multiplexing. By multiplexing, it means the process of sending multiple signals via a data link. One of the major differences between TDM and FDM is that the former uses time slots to allocate specified time frames for each signal, while the latter uses different frequencies for each signal coming from different devices.
Unlike TDM that can be used for both analog and digital signals, FDM can only be used for analog signals. This explains while TDM is usually preferred to FDM. In order to ensure synchronization, TDM uses framing bits. In contrast, to prevent overlapping, FDM uses guard bands to divide the signals.
The different carriers generated by the FDM system for different channels use different frequency bands. Another difference is that time division multiplexing requires fewer circuits compared to Frequency Division Multiplexing.