Identity is how a person expresses themselves. Anything from what you where to whom you hang out with are examples of your identity. Identity is your expression of yourself, or how you should think of yourself. Collectives, too, though, are a part of your individuality. As a group, you are creating your own person.

Tradition
"Traditio" is Latin for "to hand down" or "to hand over." So, basically, they're customs or beliefs handed down from generation to generation.
By following customs of your culture you are making your own identity. Tradition can affect your church, who you hang out with, what you wear, your language, what you eat, and many other aspects.

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Tradition includes festivals...
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...or religions, plus many others.