In the age of online privacy, two tools are often mentioned together: VPNs and proxies.
Both hide your IP address and help you browse the internet more privately, but they work in different ways and serve different purposes. From simple security to web scraping for LLM training, both serve various purposes for businesses.
If you have ever wondered which one you should use, this article will help you understand how they work, their main differences, and where residential proxies fit into the picture.
What We’ll Cover
What is a VPN?
A Virtual Private Network, or VPN, is a service that creates a secure and encrypted tunnel between your device and the internet.
When you connect to a VPN, all your traffic passes through a remote server operated by the VPN provider. This hides your real IP address and encrypts everything you send or receive.
VPNs are often used by individuals who want to protect their privacy or access content that is restricted in their region.
For example, someone in India can use a VPN to connect to a U.S. server and access websites that are available only in the United States. Because the connection is encrypted, internet service providers and hackers cannot see which websites you visit or what data you exchange.
What is a Proxy?
A proxy acts as a middleman between your device and the internet.
When you connect to a proxy, your request is first sent to the proxy server, which then forwards it to the target website. The website sees the proxy’s IP address instead of your own.
Unlike VPNs, proxies usually do not encrypt your traffic. This means that while your IP address is hidden, the data itself can still be visible to others.
Proxies are often used for tasks like web scraping, managing multiple social media accounts, or accessing geo-restricted sites in a lightweight way.
There are different types of proxies, such as datacenter proxies, mobile proxies, and residential proxies. Among these, residential proxies are the most trusted because they use real IP addresses assigned by internet service providers.
The Core Difference Between VPNs and Proxies
The biggest difference between a VPN and a proxy lies in encryption.
VPNs encrypt all network traffic from your device, while most proxies do not. This means VPNs provide a higher level of security and privacy. Even if someone intercepts your data, they cannot read it.
Proxies, on the other hand, focus more on IP masking rather than full encryption. They are lighter, faster, and more flexible for specific use cases like automation, scraping, or content testing.
For example, a company that needs to collect product data from multiple e-commerce sites will use residential proxies rather than a VPN because proxies allow scalable, distributed access from different IP addresses.
Another key difference is the level of system-wide protection. A VPN encrypts all the traffic coming from your device, including background apps.
A proxy typically only routes traffic from specific browsers or applications. This makes VPNs better for personal privacy and proxies better for targeted tasks.
Performance and Speed
Since VPNs encrypt traffic, they can reduce speed due to the extra processing involved. Proxies, by contrast, are often faster because they skip encryption and route only specific requests.
However, not all proxies are equal. Datacenter proxies may be fast but easier to detect, while residential proxies are slower but far more reliable for tasks that require realism. Businesses often accept this small trade-off in speed for better accuracy and reduced blocking.
VPNs usually have fewer IPs and servers compared to proxy networks, which can limit their flexibility. Proxies can rotate thousands of IPs automatically, which helps avoid bans and distribute requests efficiently.
Use Cases for VPNs
VPNs are ideal for individuals who value security and privacy. They are useful for browsing safely on public Wi-Fi, accessing restricted websites, or hiding browsing habits from internet service providers.
Remote workers often use VPNs to securely access corporate networks. Journalists and activists rely on them to bypass censorship or protect communication in restrictive regions.
For everyday users, a VPN provides a simple and effective way to browse anonymously and encrypt all data traffic.
Use Cases for Proxies
Proxies shine in automation and business scenarios. They are essential for data gathering, web scraping, and digital marketing. By using residential proxies, companies can collect information from multiple websites without getting blocked.
For example, a brand can track how its ads appear to users in different countries. E-commerce businesses can compare competitor prices or monitor product listings in real time. Social media managers use proxies to handle multiple accounts without triggering platform restrictions.
Proxies also help in large-scale web scraping for LLM training. They allow businesses to gather public data anonymously and at scale without getting blocked or throttled by websites.
How to Combine VPNs and Residential Proxies
In some cases, professionals use both. For example, a researcher may connect to a VPN for encryption and then route specific scraping tasks through residential proxies for location diversity. This hybrid setup balances privacy and data collection efficiency.
Combining them also reduces the risk of IP bans. If a target site starts blocking one set of IPs, the user can switch networks seamlessly. This approach is popular in cybersecurity testing, ad verification, and large-scale monitoring.
Which One Should You Choose?
If your goal is privacy, use a VPN. It secures your entire connection and hides all your online activities. If your goal is automation, data collection, or region-specific testing, use proxies.
Residential proxies are especially effective when websites have strong anti-bot protection or region-based restrictions. They combine anonymity with authenticity, making your traffic look like that of a regular home user.
For individuals who need both security and flexibility, a mix of VPN and proxy can work best. You can encrypt your connection with a VPN and use residential proxies for specific tools or scripts that need rotation and scale.
The Future of Privacy Tools
As online tracking becomes more advanced, tools like VPNs and residential proxies are becoming essential for both individuals and businesses. Companies use them to access unbiased market data and protect digital assets, while individuals use them to browse safely and privately.
In the future, we may see hybrid solutions that blend the privacy of VPNs with the scalability of proxy networks. These systems could automatically switch between encryption and proxy routing based on the task at hand, providing a seamless balance between speed and security.
Conclusion
VPNs and proxies both protect your identity online, but they serve different purposes. VPNs focus on privacy and encryption, while proxies , especially residential proxies , focus on scalability and access.
Understanding how each works helps you choose the right tool for your needs. Whether you want to stay anonymous, collect data safely, or test websites from different countries, using the right combination of VPN and residential proxies can give you both privacy and power in the digital world.
Hope you enjoyed this article. Find me on Linkedin or visit my website.