What’s the difference between a VPN and a proxy, and which one should you use?

When browsing the internet, you’ve probably heard the terms “VPN” and “proxy.”
They may sound similar: both can “change” the way you connect to the internet, but in fact, they work quite differently. You can think of them as two kinds of “middlemen” that help you connect to the web in distinct ways.

What Is a Proxy?

A proxy acts as a “relay station.”
Normally, when you visit a website, your device connects to it directly. But when you use a proxy, your request goes first to the proxy server, which then forwards it to the target website. The website only sees the proxy server’s IP address, not your real one.

This can help you bypass certain site restrictions or access specific websites in restricted networks like those at work or school.
However, a proxy offers limited protection: it typically only affects one application (e.g., your browser) and doesn’t encrypt your entire internet traffic. So while a proxy might temporarily help you get around local firewalls, your data remains essentially visible to your ISP due to the lack of encryption.

What Is a VPN?

A VPN (Virtual Private Network) creates an encrypted tunnel between you and the internet.
When enabled, all the data from your device travels through this tunnel to the VPN server before reaching the target website. Externally, your IP address appears as that of the VPN server, not your real one.

The biggest advantage of a VPN over a proxy is system-wide encryption.
No matter what app you’re using – a browser, chat app, or background service – everything, including DNS requests made by the operating system, is encrypted and securely transmitted through the tunnel.

When Should You Use a Proxy vs a VPN?

Use a proxy when:

• You just want to temporarily change your browser’s IP address (for example, to view a site’s version for another country).
• You’re in a workplace or school network that requires a proxy to access external resources.
• You don’t care much about encryption and just want a quick workaround for basic restrictions.

Use a VPN when:

You want to access geo-restricted streaming or live platforms such as Netflix or Twitch.

You’re in a heavily censored country (like China, Russia, or Iran) and need reliable access to global resources.

You want all apps on your device, not just your browser, to connect securely through an encrypted tunnel.

What Is a “Residential Proxy” and How Can You Use It in China?

A residential proxy (also called “home broadband proxy”) is based on IP addresses from household networks.
Unlike datacenter servers, residential IPs look like those of real users and are therefore more trusted in use cases such as cross-border e-commerce, social media account management, and web scraping.

Most residential proxies support only the SOCKS5 protocol – a general-purpose proxy protocol that can handle both TCP and UDP traffic.
However, in China, there are two major issues:

1. SOCKS5 traffic is easy to detect – it has long been recognized and blocked by the Great Firewall (GFW).
2. Most residential proxy providers offer no encryption – using raw SOCKS5 traffic makes detection, interference, and disconnection extremely likely.

So, for more stable performance in China, residential proxies are usually combined with a VPN, forming this routing structure:
[Request] → [VPN] → [Residential Proxy] → [Target Website]

Below are the VPNs and residential proxy providers that our team has personally tested and confirmed to work stably in China with the cleanest IPs.

PN recommendations that work in mainland China

Best residential proxy recommendations

Summary

Difference Between VPN and Proxy

• Proxy: Usually a single-protocol relay (such as HTTP or SOCKS5) that only routes traffic from specific applications. It does not encrypt data, making it faster but also easier to detect and block.
• VPN (Virtual Private Network): Creates an encrypted tunnel at the operating system level, protecting all network traffic. It offers stronger security and is better suited for use in restricted network environments.

Using Residential Proxies in Mainland China

A residential proxy is essentially a SOCKS5 proxy based on home broadband IPs. These IPs look like those of real users, making them ideal for e-commerce, social media, and other activities that need to “simulate normal user behavior.”

However, in mainland China, SOCKS5 traffic patterns are easily recognized and blocked by the Great Firewall (GFW), making direct use nearly impossible.

Solution: You need to first encapsulate the traffic with a VPN, then run the residential proxy inside it — only this combination ensures stability.

In short: The proxy gives you a “fake identity,” while the VPN provides a “secure tunnel.”
To use residential proxies safely and reliably in mainland China, you must first route your traffic through a VPN to protect and hide your SOCKS5/HTTP traffic. VPNAcademy recommends ZoogVPN for users in China.