When it comes to online privacy and security, both proxy and VPN are popular tools. But which one is better for you? In this guide, we’ll explore the differences between these, so you can use them per your needs.
The VPN market expand to $350 billion by 2032.
Source : Statista
What is a VPN?
A VPN is a private network that creates a secure connection between your device and the internet. It hides your actual IP location and assigns another fake IP location. VPNs are used for

A VPN is a service that encrypts your internet traffic. It routes your traffic through a server in a location of your choice. This hides your IP location and secures your data from potential eavesdroppers.
How does a VPN work?
A Virtual Private Network works by creating a secure and encrypted connection between your device and a remote server. They offer privacy and security while browsing the internet. Here’s a step-by-step explanation of how a VPN works


When you turn on a VPN, the software on your device establishes a connection with a VPN server. This connection is typically initiated using a VPN client application. Once the connection is established, the VPN client encrypts your data before it leaves your device.
The encrypted data is sent through a secure tunnel to the VPN server. This tunnel ensures that your data can’t be read by unauthorized parties while it is in transit. The VPN server receives your encrypted data, decrypts it, and then forwards it to the internet. When this happens, the VPN server assigns a new IP address to your data.
The server sends your requests to the destination on the internet. The responses from these destinations are sent back to the server to your device.
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Benefits of VPN
You can enjoy several benefits, including
- Your online activities are hidden from your internet service provider (ISP), government agencies, and potential hackers.
- It protects your data from cyber threats.
- VPN makes it difficult for websites and services to track your online behavior and location.
- This can help you bypass geographic restrictions and access content that is blocked in your region.
According to Verified Market Research, the market was valued at approximately $3.4 billion in 2023 and is projected to reach $7.2 billion by 2031.
Source : Verified market research
What is a Proxy?
A proxy server acts as an intermediary between your device and the internet. It hides your IP address by routing your internet traffic through a different server. It redirects your traffic through a server but does not encrypt your data.

Proxies are used for
- Proxy: Hide your IP address for anonymous browsing.
- By proxy, you can access region-locked content.
- This can help you bypass geographic restrictions and access content that is blocked in your region.
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How do proxies work?
Proxies work by acting as intermediaries between your device and the internet. They allow you to access websites indirectly. When you use a proxy server, your requests go to the server first. The server then forwards them to the target destination.
When you want to access a website, your device sends the request to the proxy server. It does this instead of sending it directly to the target server. The target server processes the request and returns the response to the proxy server.
The proxy server receives the response from the target server and then forwards it to your device. This way, the target server never directly communicates with your device. There are different types of proxy servers, including
HTTP Proxy
These proxies are used for web traffic. They handle HTTP requests and can be used to bypass content filters.
HTTPS Proxies
These are similar to HTTP proxies but support encrypted connections. They are used to handle secure web traffic (HTTPS). They offer an extra layer of security by encrypting the data between your device and the proxy server.
SOCKS Proxies
SOCKS proxies work at a lower level than HTTP and HTTPS proxies. They can handle various types of internet traffic, including HTTP, FTP, and more.
Transparent Proxies
These proxies do not change your requests or responses. They are used by organizations to cache content.
Anonymous Proxies
These proxies hide your IP address. They can protect your privacy while browsing the internet.
High Anonymity Proxies (Elite Proxies)
These proxies offer the highest level of anonymity. They hide your IP address, making it harder for the target server to detect your proxy usage.
Benefits of Using Proxies
- They protect your privacy by masking your IP location.
- They help you bypass geo-restriction content that is blocked in your region.
- They offer an extra layer of security by filtering out malicious content.
- Proxies can cache often-accessed content.
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VPN vs. Proxy: Key Differences
The main differences are
Feature | VPN | Proxy |
---|---|---|
Role | Encrypts internet traffic and hides IP address. | Hides IP address but does not encrypt traffic. |
Security | They offer encryption for data protection. | No encryption, only acts as an intermediary. |
Encryption | masks identity and encrypts the connection. | They typically do not encrypt data. |
Speed | Slower due to encryption overhead and server distance | fast |
Works on | Entire device (system-wide) | Specific applications (browser-based) |
Bypassing Geo-restrictions | Yes, effectively | Yes, but not work for all services |
Setup Complexity | Requires installation of VPN software | Generally easier to set up |
Cost | Usually paid | Mostly free available |
Logging Policies | Reputable VPNs often have no-logs policies. | Most proxies log user activity |
Performance Impact | They have less impact on performance. | They have less impact on performance. |
Which is Better for You?
- Choose a VPN if
- You need strong security and privacy.
- You handle sensitive information online.
- You want to access geo-restricted content securely.
- You often use public Wi-Fi.
- Choose a Proxy if
- You need to bypass simple geo-restrictions.
- You want to hide your IP address without needing encryption.
- You prefer a free or lower-cost solution for basic tasks.
According to the report 64% of VPN users prefer smartphones, 62% use PCs and laptops, and 21% use tablets.
Source : TechJury
Conclusion
Both VPNs and proxies have their benefits, but the right choice depends on your needs. So, which is better for you? If security and privacy are your main concerns, a VPN is the way to go. Yet, if you’re simply looking to bypass regional content restrictions for streaming or browsing, a proxy will suffice.
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Faqs
What encryption protocols do VPNs use?
They typically use protocols like:
Open
IKEv2/IPsec
WireGuard
L2TP/IPsec
PPTP
How does a proxy server work for web scraping?
Proxies are used for web scraping to prevent IP blocking. They allow large-scale data extraction from websites without getting blocked.
Can VPNs protect against DNS leaks?
Yes, many high-quality VPNs offer DNS leak protection.
What is a double VPN and how does it work?
A double VPN routes your traffic through two servers. They offer an extra layer of encryption.
Are there any risks using free VPNs or proxies?
Yes, free VPNs and proxies often come with risks like
Limited bandwidth and slow speeds.
Weak encryption,
Selling user data to third parties.
Ads and malware
What is split tunnelling in a VPN?
Split tunnelling allows you to choose which traffic goes through the VPN and which goes directly to the internet.
How do proxies handle HTTPS traffic?
HTTP proxies do not naively handle HTTPS traffic.
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