Generally, campfires are built when lacking resources to make a Fire Pit or when camping in a location that is not meant to be permanent, e.g.
wandering away from the main base once it is established.
The different stages can be observed by the growing flames and by examining the fire.
Adding too much fuel to a Campfire can cause nearby Trees, Grass, Saplings, or any other flammable objects to catch fire, which can start large forest fires in a Forest biome.
This danger can be averted by building away from other flammable objects, or opting for the Fire Pit.
A Campfire is a key to basic survival in the world.
It provides Light, Heat and allows Food to be cooked.
It requires 3 Cut Grass and 2 Logs to create and is available from the beginning of the game.It is cheaper than a Fire Pit in terms of resources, but also less efficient, as it can not be re-lit. It provides light and heat, allows food to be cooked, and is a contained, 'safer' fire than a Campfire (it will not set surrounding objects on fire).The fuel will burn twice as fast, it is more susceptible to Rain, and in a sense, it is less safe, as it may set nearby flammable objects on fire. It requires 2 Logs and 12 Rocks to craft and, like the Campfire, is available from the beginning of the game.It is a permanent structure, unlike Campfires, and can be re-lit by putting fuel in it.A Fire Pit is also more efficient than a Campfire, as the fuel will last 2 times longer, and it is less susceptible to Rain.It drops no Ashes when it burns out, but destroying it will.