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When we talk about privacy tools or software, two words often come up first: VPN and proxy. Both of these tools have different meanings and functions. Some might use a proxy server for scraping tasks while others might use a VPN to keep their connection safe on a public WiFi. Some professionals might even use both for specific tasks in digital marketing, eCommerce, and cybersecurity.

But as data control, anonymity, and secure browsing become everyday concerns, it’s important to understand the exact differences between a proxy and a VPN. Choosing the wrong one can lead to slower performance, blocked access, or data leaks.

In this blog, we are going to look at the difference between a proxy and a VPN and which one you should use.

What Is A Proxy?

A proxy server is basically like a middleman that sits between your device and the internet and reroutes requests through another IP address. This means any website you visit sees the IP of the proxy server instead of your actual IP.

Different proxies also have different functions. For example, residential proxies use real IP addresses assigned by ISPs that make them great for scraping or managing region-specific content without getting flagged. Datacenter proxies are faster and cheaper, but can easily get flagged.

A key point about proxies is that they don’t encrypt your traffic; they simply hide your IP address. This means your data is still exposed unless the website uses HTTPS or secure tunneling.

What Is A VPN?

A Virtual Private Network or a VPN hides your IP address and encrypts data through a secure tunnel to make sure no one, not even your ISP, can see what you are doing.

They have more applications when compared to proxies, such as:

  • Getting secure access to a public network.
  • Encrypting company data when working remotely.
  • Privacy for personal browsing or banking.
  • Getting rid of internet restrictions or red flags in certain regions.
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VPNs are typically installed for the whole system, so they affect all the internet traffic on your device and not just a specific browser or app.

Key Differences Between Proxy And VPN

Here is a table showing the key differences between a proxy and a VPN:

Feature Proxy VPN
IP Masking Yes Yes
Encryption No Yes
Performance Faster Slightly slower
Scope App or browser level only Entire device
Cost Cheaper and has more variety More expensive
Anonymity Medium High due to full tunnel encryption

When Should You Use A Proxy?

Even though the above points regarding proxies might make it weak compared to a VPN, there are several use cases depending on your workload where a proxy might be useful.

You should use it if:

  • You’re scraping public data from websites without logging in.
  • You’re testing geo-targeted content in different countries.
  • You’re managing multiple social accounts and need to avoid getting banned.
  • You’re looking to control costs across hundreds or thousands of IPs.

It’s best to use it when you need a lot of IPs, low latency, and your tasks don’t involve sensitive information. If your traffic is already encrypted, then proxies are more than enough for safe browsing.

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You should always look for quality proxy providers such as TravchisProxies if you are working with multiple locations and high-speed tasks.

When Should You Use A VPN?

If privacy and security are your top concerns, then a VPN is the best choice. You need to use a VPN when:

  • You’re working remotely and need to securely access your company network.
  • You’re dealing with personal or client data that must be protected.
  • You frequently use public Wi-Fi networks (cafés, airports, co-working spaces, hotels, restaurants, and more).
  • You live in or travel to countries with strict internet censorship.

A VPN can encrypt everything, such as DNS requests which makes them a better option for users who are more concerned about their privacy and don’t want to take any risks with data leaks.

Conclusion

Each privacy tool has its own features and benefits for a different job. It’s best to use both so that you can have the maximum encryption with a VPN while automating tasks using rotating IPs of a proxy.