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Soft iron is used to make temporary magnets & hard iron (steel) is used
to make permanent magnets.
How to make a permanent magnet?
To make permanent magnet, we use steel (hard iron) or alloys of iron, nickel
and cobalt.
The stroke of the magnet actually helps to orient the tiny atomic magnets
inside it. After repeated stroking it finally leads to a permanent orientation.
Making permanent magnet using DC current.