Historically speaking, witches were people who were hunted down by the church and found guilty of doing witchcraft.
Besides for displaying psychic abilities, a person could find herself on a burning stake for being a social reject, for angering the wrong people, for following different spiritual traditions, for willingly or unwillingly evoking fear in others, or for simply being a woman with a lowly social position.
(It’s a familiar situation: by playing to the intense, subconscious fears of the masses the few powerful people could pretty much doom anyone to death.)
Every village had a wise person who was in possession of some knowledge passed down by the generations, and to whom people turned to help of semi-spiritual character. In these times being a witch was not a voluntary declaration of identity, but a judgment from others.
A modern, self-declared witch is someone who is pursuing the path of the psychic by the few tradition-remnants of these ages.
‘Witchcraft’ is a term which covers a wide area and can average many things, not unlike the term ‘psychic’.
The main difference between the two is the context in which they are used:
Witchcraft is something witches did, in a world ruled by simple-minded religion on one hand and a great amount of superstition on the other. Today, our world is most influenced by scientific progress, and this is the context in which the term ‘psychic’ is used.
Both psychic understanding and witchcraft attempt to describe and influence the spiritual vicinity with words, concepts and ideas which are most abundant around us.
On the more functional side, modern witchcraft generally relies more on rituals, spells, spirits of character, and cosmic laws, while the psychic path focuses on the psychic’s mind and consciousness – and goes forth from there.
Psychic witchcraft is a pragmatic approach: use whichever method is appropriate to you to enhance your understanding and unprotected to your goals.