Residential Proxy vs VPN: All You Need to Know

Imagine you want to visit a website that’s blocked in your country, or you want to stay safe online while browsing. You’ve heard about VPNs and residential proxies, but you’re not sure which one to choose.

Many people feel the same way and wonder what the difference is between a residential proxy vs VPN. Should you use a VPN to hide your real location, or is a residential proxy better?

Here’s the brief for you: If you need better privacy and faster browsing, choose a VPN; if you need to appear as a real user in a specific location, go for a residential proxy.

In this blog, I’ll explain the differences so you can pick the right one for your needs.

This Blog will Cover

The differences between residential proxies and VPNs.
When to use a residential proxy or a VPN.
How both tools protect your privacy and data.
Which option is better for web scraping, streaming, and gaming.
Why using a VPN and proxy together is not a good idea.
How to make the right choice based on your needs.

What is a Residential Proxy?

A residential proxy is like using someone else’s internet connection to browse the web. When you use a residential proxy, websites think you're coming from a regular home address (like someone’s house), instead of knowing where you really are. This makes it look more natural because the IP address is linked to a physical location, such as a house.

**Example: Imagine borrowing a friend’s house key to enter their house instead of using your own. This way, no one knows you are the one entering the house.

Key Features

Looks more real: Websites think you are a normal user.
Harder to detect: It’s less likely to get blocked by websites.
Even though VPNs can hide your IP address, they aren't as good as rotating residential proxies for data scraping.

You can check out this blog to learn, “How are residential proxies sourced?”

What is a VPN?

A VPN (Virtual Private Network) is like a tunnel that hides all your internet activity. When you use a VPN, all your internet data gets encrypted (turned into code) and sent through a secure server, which makes it impossible for anyone to see what you’re doing online.

**Example: Imagine driving through an underground tunnel. No one can see where you're going or where you came from because you’re on a secure path.

There are different types of VPNs, like —

remote access VPNs,
extranet-based site-to-site VPNs,
and intranet-based site-to-site VPNs.

Corporate VPN

Businesses use corporate VPNs to keep their employees and their devices safe, no matter where they are connecting from.

Individual VPN

These VPNs are for personal use, which ultimately helps people keep their internet activities private.

Key Features

Hides your location: Websites can’t see where you really are.
Encrypts your data: Your internet traffic is hidden from hackers or spies.
Useful for accessing blocked websites (like Netflix in another country).

Main Differences Between Residential Proxy vs VPN

Feature	Residential Proxy	VPN
Privacy	Medium – Hides IP but not data	High – Hides both IP and encrypts data
Speed	Generally faster than VPNs, as they don't encrypt traffic	Can be slower due to encryption
Security	Low to Medium – Doesn’t encrypt your activity	High – Encrypts all your internet traffic
Usage	Better for tasks like web scraping or ad testing	Better for general online security and privacy
Detection	Harder to detect (looks like real users)	Easier to detect by some websites
Cost	Can be more expensive	Usually cheaper with monthly plans

Let me share the differences in detail.

Web Scraping

Most businesses today gather data from websites to help with things like marketing, product development, and strategy. Residential proxies are great for web scraping because they make it less likely that you'll get blocked or face captchas.

Since these proxies keep changing your IP address automatically, it looks like different people are visiting the site. This lets you collect large amounts of data from many websites without getting banned.

While VPNs also hide your IP address, they aren’t as effective for web scraping as rotating residential proxies.

So, the point goes to residential proxies!

Protecting Your Personal Information

Both residential proxies and VPNs help protect your privacy and security online by hiding your IP address. This keeps advertisers, hackers, and snoopers from tracking you.

VPNs go a step further by —

encrypting your data,
keeping your activity private,
making them a good option for protecting personal and business data.

On the other hand, premium residential proxies add extra security by creating a barrier between your network and the internet. This keeps hackers from tracking your online activity or finding weaknesses in your system.

Both tools offer protection, but VPNs get the point of having stronger security through encryption.

Bypassing Geo-Restrictions & Streaming

Both residential proxies and VPNs let you access content that’s blocked in your region by masking your IP address with one from a different location. This allows you to get around geo-restrictions and view web content from anywhere in the world.

However, services like Hulu and Netflix often block known VPN IP addresses, since VPN users usually share the same ones. On the other hand, residential proxies give you a fresh, dedicated IP address that isn’t shared with others, making them harder to block.

Residential proxies are also faster than VPNs, which is important for streaming. VPNs slow down your connection because of the heavy encryption they use, while residential proxies don’t affect your speed as much.

Online Gaming

VPNs can keep you safe while playing multiplayer games by protecting you from DDoS attacks, where opponents try to disrupt your connection.

VPNs also let you find better game prices by changing your location. Residential proxies can also help you find deals on games and access features not yet available in your country.

But the main reason they are better for gaming is their speed. High-quality residential proxies speed up your connection and loading times, offering a smooth, lag-free gaming experience.

When to Use a Residential Proxy?

There are several reasons a residential proxy is suitable for the usage.

Web Scraping: If you're collecting data from websites, a residential proxy helps you seem like many different users, which ultimately makes it harder for the site to block you.
Bypassing Geo-Restrictions: You can use it to visit websites that are only available in certain countries.
Ad Testing: Businesses use proxies to check how their ads look to users in different places.

Residential Proxy Example:

Let’s say you own an online store and want to check prices on competitors’ websites in different countries.

A residential proxy makes it look like you’re visiting those websites from local homes in each country, so you can see the same prices regular customers see.

When to Use a VPN?

There are several reasons a VPN is suitable for usage.

Online Privacy: If you don’t want anyone (hackers or even your internet provider) to see what websites you’re visiting, a VPN is great.
Accessing Blocked Content: A VPN lets you access websites or services that are blocked in your country. For example, watching a TV show on Netflix that’s only available in another country.
Public Wi-Fi Protection: VPNs are useful when using public Wi-Fi (like in coffee shops), as they protect your data from being stolen.

VPN Example:

If you're visiting a country where social media, like Facebook, is blocked, using a VPN lets you connect to a server in your home country. This way, you can access Facebook without any problems.

Which One is Right for You?

If you’re looking for high privacy and encryption, a VPN is the better choice. On the other hand, if you need to perform specific tasks like data scraping, ad testing, or bypassing geo-blocks in a natural way, then a residential proxy is the way to go.

Here’s a simple comparison chart to help you decide:

Need	Best Option
General internet privacy	VPN
Public Wi-Fi protection	VPN
Web scraping	Residential Proxy
Ad verification	Residential Proxy
Streaming region-locked content	VPN or Residential Proxy
Avoiding detection while browsing	Residential Proxy

Can I Use a VPN and Proxy Together?

It’s not a good idea to use both a VPN and a proxy at the same time because it can cause more problems than it solves. Here’s why:

Slower speed: When you use both a proxy and VPN, your internet will get much slower. Your data has to pass through multiple servers and encryption steps, which can make browsing, streaming, gaming, and downloading take longer.
More complicated: You’ll have to deal with more settings, troubleshooting, and possible issues with compatibility or connection. You might also face more errors, website blocks, or CAPTCHAs.
Less security: Using both won’t make you more secure. A proxy won’t encrypt your data or hide that you’re using a VPN. In fact, it might expose your IP address or leak your data, especially if you’re using a free or public proxy service.

Wrapping Up

Hopefully, I can perfectly show you the real differences between Residential Proxy vs VPN. Both residential proxies and VPNs are useful in different ways.

A VPN is good for keeping your browsing private and secure, while a residential proxy is better if you need to look like a real user from different places.

Choose the one that fits your needs best!

FAQs

Which one is better: VPN or Residential Proxy?

A VPN is better for privacy and security because it encrypts your data. A residential proxy is better for tasks like web scraping or bypassing geo-restrictions without being detected, though premium residential proxy providers offer robust privacy, too.

Is a proxy server necessary if you already have a VPN?

A proxy server and a VPN both hide a business's IP address. However, a VPN also encrypts all the data you send and receive, which a proxy can't do. So, if you're using a VPN, you don't need to use a proxy server to connect to websites or apps.

What are the differences between Proxy vs. VPN vs. Firewall?

Proxy: Hides your IP address, good for web scraping and bypassing geo-restrictions. VPN: Encrypts your traffic, and protects your privacy and security. Firewall: Blocks unwanted network traffic, and protects your device from attacks.

What is the best residential IP?

The best residential IP for your needs depends on factors like your location, purpose, and budget. Residential IPs from providers like IPRoyal, SmartProxy, Bright Data, Oxylabs, Webshare, etc. are often considered reliable options. Research and compare providers to find the best fit for your specific requirements.

You can take a look at this blog to learn about the cheapest and best residential proxies in 2024.

About the Author

Jayden Sprent is a distinguished expert in Cybersecurity, Proxies, and Web Scraping. He graduated from California University with a strong foundation in Cybersecurity. With extensive experience and a deep understanding of digital security, Jayden is dedicated to protecting online environments and optimizing web data extraction. His expertise in proxies ensures efficient and secure internet connections, while his proficiency in web scraping enables valuable data acquisition. Jayden's commitment to excellence and personalized approach has made him a trusted professional in the field.

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