INotifyPropertyChanged vs. DependencyProperty in ViewModel

When implementing the ViewModel in a Model-View-ViewModel architecture WPF application there seem to be two major choices how to make it databindable. I have seen implementations that use DependencyProperty for properties the View is going to bind against and I have seen the ViewModel implementing INotifyPropertyChanged instead.

My question is when should I prefer one over the other? Are there any performance differences? Is it really a good idea to give the ViewModel dependencies to WPF? What else do I need to consider when make the design decision?

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