Proxy vs. VPN: What Are The Main Differences?

While both proxies and VPNs enhance privacy and allow bypassing geo-restrictions, they operate differently. While proxies primarily serve as intermediaries between users and the website, rerouting requests, VPNs create an encrypted tunnel for all internet traffic, safeguarding information from external threats. But if you’re a newbie in the internet privacy landscape, this short explanation might not be enough.

So, which should you choose? This guide will break down the key differences between proxies and VPNs, strengths, weaknesses, and which would work best for your use case.

What is a proxy server?

A proxy server is an intermediary that handles requests between your device and the target. It masks your original IP address by forwarding requests through an IP assigned by a proxy provider. Before diving deeper into the intricacies of this intermediary, you should know the difference between forward and reverse proxies.

Forward proxy is an intermediary between a client, like a user's browser, and external systems, regulating traffic and masking the client's identity. It's often used for tasks like accessing geo-restricted websites.

Reverse proxy sits between external users and a server, routing requests to internal servers, improving security, and distributing traffic for load balancing. This makes reverse proxies helpful in managing large web infrastructures.

Main types of proxies

Coming in various shapes and sizes, there’s a wide range of proxy types available on the market. Here are the most popular proxies you can get and their use cases:

• Residential proxies use real IPs associated with a physical device connected to the local network. This proxy type is the best when you need real appearance when accessing advanced targets, managing multiple profiles, or collecting real-time data.
• Datacenter proxies come from cloud-based data centers and aren’t tied to physical ISPs. They offer fast speeds and are generally cheaper but may be more easily detected by sophisticated websites. Also called generic proxy servers, they’re great for price comparison, AdTech, and SEO tasks.
• Mobile proxies, often known as the proxy type with the best reputation and highest success rates, come from mobile devices. Mobile proxies are great for app testing, multi-accounting, and web scraping various targets.
• Static residential (ISP) proxies are IPs provided by the Internet Service Providers (ISPs). Combining the authenticity of residential IP addresses with the stability of datacenter ones, ISP proxies offer trustworthiness for traffic-intensive tasks and accessing websites with advanced anti-bot software.

While searching for the perfect proxy type, you might stumble upon some other proxy server definitions, including:

• HTTP proxies handle only HTTP traffic and are useful for browsing websites casually.
• SOCKS5 proxies are more versatile, supporting multiple types of traffic, including HTTP, FTP, and more, offering better performance than HTTP-supported proxies.
• Anonymous proxies hide your IP address while being identified as proxies by advanced anti-bot software.
• Transparent proxies don’t mask your IP address at all. Instead, they operate without notifying the user, making them useful for content filtering or caching.

Common use cases for proxies

Proxies are versatile tools that offer a variety of practical applications in both personal and professional settings. Some of the most common use cases include:

• Web scraping. With proxies, users can collect large amounts of data from websites without facing CAPTCHAs or IP bans. By rotating IPs, proxies help bypass rate limits and anti-scraping mechanisms, ensuring continuous access to real-time information from various targets.
• Bypassing geo-restrictions. Proxies allow users to access content otherwise unavailable in specific regions by masking their real IP address and routing their connection through a server in a different location.
• Managing multiple accounts. Various proxy types help users manage numerous accounts on the same platform without getting flagged for suspicious activity. Businesses or individuals can avoid detection and maintain smooth operations across eCommerce or advertising platforms by assigning different IPs to each account.
• AdTech. With a list of IPs, businesses can test ad placements, validate campaigns, and monitor competitors in different regions to identify whether the ads are displayed correctly.
• SEO. Proxies play a vital role for SEO managers. SERP gurus can collect data on keywords, competitors, or backlinks at scale. With the help of proxies and scraping solutions, businesses can gather information on search engine results without facing various restrictions.
• Price intelligence. Proxies enable businesses to monitor and collect pricing information from competitors in real time. This helps in adjusting pricing strategies, understanding market trends, and ensuring competitive advantage without being blocked by websites that guard their pricing data.

What is a VPN?

A VPN (Virtual Private Network) is a service that creates a secure and encrypted connection between your device and the internet. VPNs mask your IP by routing all your internet traffic through a remote server while encrypting the data to protect it from third parties.

When a user connects to a VPN, all the data that passes between the device and the VPN server is encrypted. This makes VPNs ideal for users who seek security and privacy when using public Wi-Fi networks.

Common use cases for VPNs

For some users, proxies and VPNs might sound like a similar technology. However, the use cases differ. While proxies are great for tasks like multi-accounting, ad verification, and web scraping, VPNs are great for use cases like:

• Securing public Wi-Fi. VPNs encrypt your internet connection when using public Wi-Fi, safeguarding your data from hackers and cyber threats on unsecured networks.
• Bypassing restrictions. Virtual private network allows users to access restricted content by masking their IPs, enabling them to browse websites or stream services that are blocked in certain regions or countries.
• Enhancing online privacy. VPNs help protect users’ online privacy by hiding browsing activities from ISPs and advertisers.
• Remote work. VPNs provide remote workers with a secure and encrypted connection to their company's internal network, allowing safe access to sensitive business resources and data from anywhere.

What are the differences between a proxy and a VPN?

Proxies and VPNs both act as intermediaries between a user's device and the target, but they differ in functionality and suitability for specific tasks. A proxy server reroutes internet traffic through a different IP address, helping users bypass geo-restrictions, access blocked content, and perform specialized tasks like web scraping, ad verification, and managing multiple accounts. While proxies don’t encrypt traffic between the user and the final destination, they offer speed and flexibility, making them ideal for use cases where data encryption isn't a priority. Proxies work at the application level, allowing users to configure them for specific browsers or software without affecting the entire internet connection, making them more adaptable for targeted tasks.

VPNs, on the other hand, encrypt the entire connection between the user and the VPN server, providing more comprehensive security. While this sounds advantageous, the encryption process significantly slows down internet speeds and drains system resources, which can be a major drawback for users prioritizing performance over security. VPNs reroute all traffic, not just selected applications, which can lead to network congestion and lag.

Can you use VPN and proxy together?

Yes, you can use a proxy and VPN together. In this setup, the proxy hides your IP while the VPN encrypts your traffic. While this can provide additional privacy, it may also result in slower connection speeds due to the combined layers of encryption and rerouting.

For the best performance, we recommend using one solution for the specific use case. For example, if you’re working with sensitive information while connected to the public network, turn on your VPN and safeguard your connection. And when you’re running web scraping, SEO research, or other traffic-intensive tasks, use residential proxies to ensure you’re avoiding CAPTCHAs, IP bans, and other restrictions.

Wrapping up

So, to finish a debate – proxies vs. VPN, it all comes down to your use case. Both proxies and VPNs offer unique benefits depending on your needs. Proxies are faster and more suited for completing tasks like web scraping or bypassing geo-blocks, while VPNs provide better security and privacy for everyday browsing and accessing sensitive information.

Don’t stop learning – continue exploring our expert articles on proxy API vs. traditional scraping, the best datacenter proxy providers, and the differences between static residential (ISP) and other proxy types.