Isotropic and Kinematic Hardening describe the effect of the plastic deformation on the yield surface (see Wikipedia: Yield Surface for further reference).

In summary, the yield surface grows isotropically with isotropic hardening, whereas it moves with kinematic hardening.

In real materials, the material behavior is usually a combination of both hardening types.

How to set up the hardening type for a material is expert knowledge and can only be analyzed by measuring multiple load cycles for a material. Nevertheless, if only tension or compression is applied to a material, the results for both hardening types are the same, and it is sufficient to keep the default Isotropic Hardening when setting up a material law.