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Proxy vs VPN: what to choose for your online tasks?

Clients often ask us: "What is better for my project – a proxy or a VPN?". We always answer that these tools solve different tasks, and in the modern internet, the boundaries between them are blurring thanks to new technologies. In this article, we will break down the technical differences, debunk popular myths, and help you choose a solution that anti-fraud systems won't block.


How a proxy works and what are its features?

A proxy — is an intermediary (an additional link) between the user and the target server. Its task: to receive your request, replace the IP address, and send the data to the website on its own behalf. The operational algorithm is as follows:

Proxy operational diagram

Fig. 1. Proxy operational diagram.

  1. The user sends a request to the proxy server.
  2. The proxy forwards this request to the internet (your real IP is hidden).
  3. The website sends a response to the proxy.
  4. The proxy returns the data to you.

Proxies operate at layers 5-7 of the OSI model (session, presentation, and application). This means they operate with data at the level of specific applications or protocols (HTTP, FTP, etc.).

Important nuances of encryption and operation
  • HTTP Proxy. They work at the application layer (OSI layer 7). Excellent for browsers and software using HTTP requests. They can cache data (save copies of images or pages), which sometimes speeds up loading, but this is an optional feature.

  • SOCKS5 Proxy. They work at the session layer (OSI layer 5). They are more universal: they transmit any traffic (TCP/UDP) without interfering with it. Suitable for messengers, games, and torrents.

Encryption Myth: It is often said that proxies do not encrypt data. This is only partially true. A proxy does not guarantee encryption of the channel from you to the proxy server itself (unlike a VPN). However, if you access a site using HTTPS, your data (passwords, cards) is encrypted by the browser before being sent, and the proxy server will only see the domain you are visiting, not the content of the packets.

Ping and Speed Myth: A proxy — is one additional hop (node) in the network. Contrary to popular belief, adding an extra node usually increases latency rather than decreasing it. Low ping is only possible if the proxy server is geographically close to the target resource (e.g., a game server) and has a better route than your ISP. Proxy speed depends on its location, channel load, and hardware power.

Warning! The Danger of Free Proxies.

Public (free) proxies — are a trap. The owner of such a server can log your traffic, intercept unencrypted data (cookies, passwords from HTTP sites), replace content (inject their own ads), or use your device as part of a botnet. We strongly recommend using proxies only from reliable paid sources.

In which projects are proxies used?

High-quality private proxies — are the standard for professional work where mass scale or imitation of a real user is required.

  • Web scraping and parsing. Collecting data on prices and competitors without the risk of an IP ban.
  • Affiliate marketing and multi-accounting. Working with hundreds of accounts on Facebook, Google, and TikTok via anti-detect browsers.
  • Bonus hunting. Thanks to the speed of proxies in tandem with anti-detect browsers, users create isolated profiles (virtual machines) with unique IPs, effectively bypassing strict website restrictions.
  • Automation. Mass actions (likes, follows, registrations).
  • Ad testing. Checking content display across different geos.
  • Gaming. A proxy masks your real IP address, allowing you to bypass regional blocks on game servers. A high-quality connection ensures stable gameplay without lags, and in some cases, helps reduce ping by optimizing the route.

What is a VPN and why do websites "see" it?

A VPN (Virtual Private Network) creates an encrypted tunnel between your device and the server. The layer of the OSI model at which a VPN operates is determined by its protocol. IPsec — is a classic representative of layer 3 (network), working with IP addresses. If you need to simulate a direct physical connection between devices, layer 2 protocols like L2TP or PPTP are used. OpenVPN stands apart: it wraps traffic in SSL/TLS (like regular web traffic), operating at the application layer (7), but simultaneously creates virtual interfaces for layers 2 and 3. In TUN mode — it is layer 3 (network, like IPsec), and in TAP mode — it is layer 2 (data link, for Ethernet emulation).

VPN Operational Algorithm

VPN operational diagram

Fig. 2. VPN operational diagram.

  1. Initiation: You send a request (for example, opening a page in a browser).

  2. Local Encryption: The VPN client on your device instantly encrypts the data, turning it into unreadable code for your ISP.

  3. Tunneling: The encrypted packet is transmitted through a secure tunnel to a remote VPN server.

  4. Anonymization and Exit: The VPN server decrypts the data, replaces your IP address with its own, and forwards the request to the target website.

  5. Resource Response: The website processes the request and sends a response back to the VPN server (not knowing your real address).

  6. Reverse Protection: The VPN server encrypts the received response again and sends it to your device.

  7. Decryption: The client on your device decrypts the data, and you gain access to the content.

The Main Problem with Regular VPNs

A classic VPN is great for protecting you from a hacker-neighbor at a cafe with Wi-Fi, but it is poorly suited for bypassing smart blocks.

The fact is that 99% of VPN services use Data Center IP addresses. These addresses are listed in public databases. Streaming services (Netflix), bookmakers, banks, and even Instagram easily detect that you are using a VPN and may block access or require additional verification.

Additionally, regular VPN protocols (OpenVPN, WireGuard) have specific "digital fingerprints" that are easily detected by DPI (Deep Packet Inspection) systems used by ISPs.


Evolution: VLESS/XRAY and Mobile Proxies

What if you need the convenience of a VPN (toggle one button on your phone) but the anonymity and "trust" of mobile proxies? Use modern protocols.

We offer solutions based on VLESS/XRAY with XTLS-Reality support, running over mobile proxies. This provides unique advantages:

  1. Impossible to detect. Your traffic looks like regular web browsing; ISPs do not block it.
  2. High Trust. You access the network from the IP address of a real mobile operator, not a spammed data center.
  3. Convenience. It works like a VPN (via an app) but with the quality of elite proxies.

Check out the rates for Mobile Proxies with Vless/Xray and next-generation VPN here.


Comparison: Proxy, Regular VPN, and VPN+Proxy (Vless/Xray)

AspectProxy (Datacenter/Residential/Mobile)Regular VPNVPN + Proxy (VLESS/Mobile)
Operational LevelApplication / Browser (configured separately).Entire system (one button).Entire system or selective (Routing).
EncryptionDepends on the protocol (HTTPS encrypts Payload).Full tunnel encryption.Full encryption + masking as regular traffic.
Anti-fraud Detection

Low (if mobile proxy),

Medium (if residential),

High (if datacenter).

Very High (Data center IPs are in databases).Zero (you look like a regular mobile subscriber).
Suitable ForScraping, automation software, working in anti-detect browsers.Changing country for YouTube, protection on public Wi-Fi, simple sites.Gambling, Betting, Banking, Mobile affiliate marketing, bypassing complex blocks.

Summary: What to choose?

  • Use a Proxy if you are a professional: you need to manage multiple accounts, scrape data, or work through special software (anti-detects, bots).
  • Use a Regular VPN if your goal is — simple everyday anonymity: hiding history from your ISP or safely browsing in a cafe.
  • Use a VPN + Mobile Proxy (VLESS/XRAY) combination if you work with picky services (bookmakers, crypto exchanges, banks) that immediately ban regular VPNs. This is the golden mean, providing maximum protection and a "clean" IP address.

High-quality Datacenter, Residential, and Mobile proxies, as well as pre-configured VLESS configurations, can always be found in the CyberYozh App catalog.