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Privacy5 min read

VPN vs Proxy: What's the Difference?

VPNs and proxies both hide your IP, but they work very differently. Learn which one actually protects your privacy and when to use each.

Both VPNs and proxies route your traffic through an intermediate server to hide your real IP address. Beyond that basic similarity, they are completely different tools — and confusing them is one of the most common mistakes people make when trying to protect their privacy online.

What is a Proxy?

A proxy server acts as a middleman between your device and the websites you visit. When you connect through a proxy:

  1. Your request goes to the proxy server
  2. The proxy forwards it to the website
  3. The website responds to the proxy
  4. The proxy sends you the response

The website sees the proxy's IP, not yours.

That's it. That's where the protection ends.

What is a VPN?

A VPN (Virtual Private Network) does everything a proxy does, plus one critical thing more: it encrypts all your traffic.

When you use a VPN:

  1. Your device creates an encrypted tunnel to the VPN server
  2. All traffic — every app, every connection — goes through this tunnel
  3. Even your ISP cannot read what you're sending or receiving

The Key Differences

| Feature | Proxy | VPN | |---|---|---| | Hides your IP | ✓ | ✓ | | Encrypts traffic | ✗ | ✓ | | Works for all apps | ✗ (usually browser only) | ✓ | | Protects on public Wi-Fi | ✗ | ✓ | | Hides from ISP | ✗ | ✓ | | Speed | Fast (no encryption) | Slightly slower |

When is a Proxy Enough?

Proxies are useful for simple tasks like accessing geo-blocked content where encryption is not the concern. For example, watching a video that's only available in another country on a trusted home network.

When You Need a VPN

You need a VPN whenever:

  • You're on public Wi-Fi (coffee shops, airports, hotels)
  • You want to hide your activity from your ISP
  • You're handling sensitive information (banking, work emails)
  • You want protection across all your apps, not just the browser
  • You actually care about privacy, not just IP masking

What About "Free Proxies"?

Free proxy services are generally not trustworthy. The proxy operator can see all your unencrypted traffic. Many free proxies exist specifically to harvest user data.

The same is true for many free VPN services — they need to make money somehow, and the product is often your data.

The Bottom Line

If your goal is privacy and security, a VPN is the right tool. A proxy is a shortcut that looks similar on the surface but provides a fundamentally weaker protection model.

VaultVPN uses WireGuard encryption, logs nothing, and runs on your phone — the device that needs protection the most.

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