Paradox is a situation or statement which seems difficult to understand because it contains two opposite facts or characteristics.
Example: "This statement is false." If you think it's true, then it must be false, but if you think it's false, it must be true. Now, that's a paradox!
"I always lie" is a paradox because if it is true it must be false
Contradiction:
when something is the complete opposite of something else or very different from something else, so that one of them must be wrong
Example: You say that you're good friends and yet you don't trust him. Isn't that a bit of a contradiction?