Compound Chocolate: substitutes the two main ingredients found in real chocolate (cocoa powder instead of chocolate liquor and oil replacing cocoa butter). This means, for candy making, this chocolate can be melted down and dipped and will set up fine. It tastes a little different. Couverture Chocolate: it is Real Chocolate which has cocoa butter and chocolate liquor as main ingredients. This means that it requires more attention and preparation when being melted down. It has to be tempered to set with a glossy shine, has a snap and melts in your mouth.