Before we talk about exactly how dynamic microphones function and what they actually do, it's important to first explain one of the basic components of any microphone; the diaphragms. They're basically tiny microphones, made up of a thin piece usually made from silver-colored plastic, an electrical conductor, and a magnet. Sound waves cause the magnet to turn and that in turn produces the voltage which ultimately causes the sound to vibrate. The diaphragms are constructed in a way that allows them to be extremely sensitive to sound waves. It's this sensitivity that makes them so useful.
Dynamic microphones are typically used on drums, guitar, bass, and many other musical instruments. Because of their sensitivity, dynamic microphones can pick up the subtleties of a played instrument very accurately. This is especially important when you play a song on your acoustic guitar and need to reproduce the guitar sound as best you can. Most professional musicians use dynamic microphones to help create their signature sounds.
Dynamic condenser microphones are a lot less expensive than dynamic microphones, but they don't have as much power or flexibility. You can find many musicians who like the sound of a dynamic microphone but are just fine with condenser mics because their performance requires a little bit more power. If you're just starting out though, condenser microphones are a great way to get a foothold into the world of professional audio.
Another common type of microphone is the ribbon. Ribbon microphones are probably the easiest ones to understand and are the most popular. They basically have two cables going in opposite directions. One leads to the headphones and the other to the mixer. The ribbon also has an attachment that picks up sound and transmits it to the headphones.
If you want a really good sound, then the high-frequency Dynamic Microphone is for you. They're called "dynamic microphones" because they pick up and reflect high-frequency vibrations from the music. Because of this, they tend to be less sensitive than some other dynamic microphones. However, many professional musicians still prefer these types of microphones because they're so accurate. If you plan to do a lot of live performances and want a great high-frequency sound, a good choice might be the ribbon.
Another option for high-frequency sounds is the coil sound waves hit. These are usually more expensive than the ribbon. The diaphragms on coil microphones need to be sturdy enough to handle the large weight of the coil sound waves. They also need to have an attachment that will catch and reflect the large number of vibrations that come with playing a song. However, coil microphones can capture and reproduce high-frequency vibrations beautifully, so if you don't mind playing loud, this might be your best option.
One type of microphone that's a little bit cheaper than other dynamic mics is the solid-state model. While they don't have as much sensitivity as some other dynamic mics, solid-state devices do offer a good frequency response. They're also known to be more durable than their dynamic counterparts. They have a nice clamp on the shaft that locks the head in place, so they tend to be a little bit more stable than dynamic microphones. Some solid-state devices also have a nice carrying case or carrying bag.
These are all good choices for the average DIY studio. If you need to capture live sound and are concerned about the quality of the sound, then either one of these models will work well for you. For general recording vocals, the dynamic microphone will give you a much better frequency response and more boom than the solid-state device. On the other hand, the mid-range models will be great for even softer vocals and general instrumentals.