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When $x$ approaches zero, doesn't it become infinitesimally small or in other words, an infinitesimal?

I have been told that limits and infinitesimals are distinct concepts. For example, Wikipedia states that there are two types of calculus : standard and non standard.

It states that in non-standard calculus, infinitesimals are used instead of limits, which are used in standard calculus. Wikipedia also states that the idea of limits resolved many debates on the logical validity of infinitesimals.

I am unable to understand how infinitesimals and limits are different.

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An infinitesimal is an infinitely small number. One way you could define this is that $\omega$ is an infinitesimal if for all real numbers $r\in\mathbb{R}_{>0}$ we have $0<|\omega|<r$. i.e. $\omega$ is non-zero, but it's absolute value is smaller than any positive non-infinitesimal number.

A sequence $(x_{n})$ in the real numbers converging to $0$ becomes arbitrarily small, not infinitesimally small. So for every real number $\varepsilon\in\mathbb{R}_{>0}$ we can find some $N\in\mathbb{N}$ such that for all $n\geq N$ we have that $|x_{n}|<\varepsilon$. Note though that every sequence element $x_{n}$ is still a non-infinitesimal numbers (except if $x_{n}=0$, but that does not really count in this context).

That being said one way to construct infinitesimal numbers is to look at certain equivalence classes of sequences converging to $0$, so your intuition that a sequence converging to $0$ is somehow linked to an infinitesimal number is not completely wrong.