July 3rd, 2025

VPN vs. Proxy vs. Tor: What’s the Difference and Which Should You Use?

Online privacy matters more than ever. As corporations and governments collect increasing amounts of data about our online activities, many people turn to privacy tools for protection. Three of the most common options are VPNs, proxies, and Tor, but how do they differ, and which one should you choose?

If you’ve researched ways to protect your privacy online, you’ve probably come across these terms. While all three tools can help safeguard your online activity, they function differently and provide various levels of security, speed, and ease of use.

At Batten Cyber, many users ask us which option works best for their specific needs. This guide discusses what each technology does, compares their strengths and weaknesses, and helps you choose the right privacy solution for your situation. One of the main things we’ll be doing is finding out the difference between VPN and Tor.

Let’s compare VPN vs. proxy vs. Tor to find out which of these three methods is best for protecting your online privacy.

Contents

Key Takeaways
Overview of How VPNs, Proxies, and Tor Work
Key Differences: Security, Performance, and Usability
Best Uses for Each Technology
Which Solution Is Right for Your Needs?
Privacy Tool Recommendations Based on User Needs
VPN vs. Proxy. Vs. Tor: Other Considerations
Conclusion: Making Your Privacy Choice
Frequently Asked Questions

Key Takeaways

VPNs encrypt traffic, hide your IP address, and protect all device activity for broad online privacy.
Proxies offer basic IP masking but lack encryption and typically only work with browser traffic.
Tor routes traffic through multiple nodes with layered encryption, offering the highest anonymity.
Performance varies: VPNs have moderate impact, proxies are fastest, and Tor is slowest but secure.
Each tool serves different use cases, from daily browsing to sensitive communication.
Combining tools like VPN + Tor can improve privacy but will slow your connection.
Start protecting your privacy today with a trusted VPN from Batten’s cybersecurity marketplace.

Overview of How VPNs, Proxies, and Tor Work

Before deciding which privacy tool fits your needs, it’s important to understand how VPNs, proxies, and the Tor network each function. Below, we’ll start by looking at how a VPN works and what sets it apart.

What Is a VPN?

A Virtual Private Network (VPN) creates a secure, encrypted tunnel between your device and a remote server managed by the VPN provider. Once connected, all of your internet traffic is routed through this tunnel, shielding your activity from third parties and replacing your IP address with that of the VPN server.

When you use a VPN:

Your online activity is encrypted, making it unreadable to ISPs, hackers, or network administrators.
Your real IP address is hidden and replaced with the VPN server’s address.
Nearly all internet traffic from your device is routed through the VPN, not just browser activity.

VPNs have become increasingly popular due to growing concerns about digital privacy. In fact, VPN usage rose by 27.1% in 2020 alone. The trend shows no sign of slowing, with projections estimating the global VPN market will reach $107.5 billion by 2027.

User habits also vary by device. Around 32% of mobile users report using their VPN every day or nearly every day, while daily use among PC and laptop users is slightly lower at 29%.

For a more detailed look at the benefits of VPNs and when to use one, check out our full guide on whether or not a VPN is worth it, which outlines practical advantages for everyday internet users.

What Is a Proxy?

A proxy server acts as a middleman between your device and the internet. When you visit a website using a proxy, your request is first routed through the proxy server, which then communicates with the website on your behalf. The website sees the proxy’s IP address instead of your own, providing a basic layer of anonymity.

Key Characteristics of Proxies

To better understand how proxies differ from VPNs and Tor, it helps to look at their key features:

IP Masking: Proxies hide your real IP address but do not typically encrypt your internet traffic. This means your data can still be visible to ISPs, network administrators, or malicious actors.
Limited Coverage: Most proxies only handle traffic from specific applications, such as a web browser, rather than all traffic from your device.
Performance: Because proxies are often simpler than VPNs, they can be faster in certain use cases, especially for streaming or basic browsing.
Privacy Tradeoffs: Many free proxies log user activity or inject ads, raising security and privacy concerns.

Usage of proxies continues to grow, driven by demand for location masking and content access. The global proxy server market is projected to increase from $26.81 billion in 2021 to approximately $50.73 billion by 2026, reflecting a compound annual growth rate of about 14.4%.

This growth illustrates the role of proxies as a quick, accessible privacy tool, especially for users looking to bypass geographic restrictions.

What Is Tor?

Tor, short for The Onion Router, is a privacy-focused network designed to make your internet activity difficult to trace. It works by routing your traffic through a series of randomly selected volunteer-run servers, known as nodes.

Each layer of the network only knows enough to pass the data along, creating multiple layers of encryption that obscure your identity and location.

How Tor Works

To understand the privacy benefits of Tor, it helps to break down how it routes traffic:

Multi-Hop Routing: Your internet traffic is relayed through at least three different nodes before it reaches the final destination. These hops are chosen at random and change with each session.
Layered Encryption: Each node decrypts only a single layer of the encrypted message, enough to forward it to the next hop. This method prevents any single node from knowing both the origin and the destination.
Exit Node Visibility: The final node in the chain, called the exit node, connects to the destination site. The website only sees the IP address of this exit node, not your device’s actual location.
Specialized Browser Access: To use Tor, most people download the Tor Browser, which is built on Firefox and configured to use the Tor network by default.

Tor Usage and Global Reach

Tor is actively used by around two million people each day to browse anonymously, access restricted content, or avoid surveillance.

The highest number of users are based in the United States, averaging more than one million daily. Lithuania also has a significant presence with over 465,000 daily users, followed by Germany with approximately 260,000.

While Tor provides strong anonymity, it also tends to be slower than VPNs or proxies due to the complex routing system. Still, it remains a vital tool for people living under censorship, journalists working in high-risk regions, and privacy-conscious individuals worldwide.

Key Differences: Security, Performance, and Usability

The level of protection you get from a VPN, proxy, or Tor network depends on how each one handles your data and identity. While all three can mask your IP address to some extent, only some provide true encryption and privacy safeguards.

VPN vs. Proxy. vs. Tor: Security Comparison

Let’s start by talking about what everyone wants to know, just how secure these three methods are.

VPN Security

VPNs encrypt all data between your device and the VPN server, preventing your internet service provider, network administrators, or nearby attackers from monitoring your activity. However, the VPN provider can still see your traffic unless they have a strict no-logs policy.

This makes the provider’s privacy practices especially important. Our NordVPN Review covers which features to prioritize when evaluating VPNs for secure use.

It’s also worth noting that the most common reason people use VPNs is for work. According to Google Trends data from April 2024 to April 2025, about 50% of VPN-related search interest was tied to remote work and professional use.

Security was the second most common driver at 23%, followed by gaming (15%), travel (7%), and privacy (5%). These patterns show that many users turn to VPNs for practical protection rather than for anonymity alone.

Proxy Security

Proxies hide your IP address but do not typically encrypt your data. This leaves your activity exposed to your ISP, anyone on the same network, or even the proxy service itself. Free proxies in particular often come with major risks.

In one study, 79% of free proxy servers were found to monitor or manipulate user traffic, sometimes inserting ads or logging browsing activity without consent. While proxies can be useful for bypassing geo-restrictions, they are not designed for secure communication.

Tor Security

Tor offers the strongest level of anonymity by routing your traffic through three or more volunteer-run servers. Each step in the route adds a layer of encryption, preventing any single server from knowing both your identity and destination.

That said, the exit node, the last server before your data reaches its final site, can potentially view any unencrypted traffic. Despite this, Tor remains one of the most secure tools for protecting identity online.

Originally developed by the U.S. Naval Research Laboratory, it is widely used by individuals who need to avoid surveillance or censorship. When security is the top priority, especially in high-risk scenarios, Tor often outperforms VPNs and proxies.

Our Free VPN Security Risks guide discusses when stronger alternatives like Tor might be necessary.

Performance Impact Comparison

Using privacy tools can affect your internet speed, depending on how the technology routes and encrypts your data. Below, we compare the typical performance impact of VPNs, proxies, and the Tor network.

VPN Performance

Most VPNs reduce your connection speed by about 10 to 20%. The actual impact depends on several key factors:

Distance to the Server: Shorter distances between your device and the VPN server usually mean faster speeds.
Server Load: Congested servers with many active users can slow things down.
Encryption Protocol: Some protocols, like WireGuard, offer faster speeds than older options such as OpenVPN.
Your Internet Baseline: Slower base speeds tend to be more affected by VPN use.

Despite these variables, many premium VPN services now offer speeds close to unprotected connections. In some cases, users can expect up to 90% of their original bandwidth, depending on server selection and network conditions.

Proxy Performance

Proxies generally cause less speed loss than VPNs. They typically reduce internet performance by around 5 to 20%. This efficiency is partly because proxies don’t encrypt traffic.

That performance gain comes at the cost of security, since your data remains visible to anyone monitoring the connection. Proxies also tend to work with limited applications, like web browsers, rather than routing all internet activity.

Tor Performance

Tor has the highest performance cost among the three. Speed reductions often range from 50 to 90%. Several factors contribute to this:

Multi-Hop Routing: Traffic is relayed through at least three volunteer-run nodes.
Encryption Overhead: Each hop adds encryption and decryption time.
Node Speed: Tor relies on a decentralized network of volunteers, and node quality varies.

Tor is intentionally optimized for privacy and anonymity, not speed. While this makes it ideal for secure browsing, it is not suitable for activities that require high bandwidth, such as video streaming or large file downloads.

Feature Comparison at a Glance

Here’s how VPNs, proxies, and Tor compare based on several important features:

Feature	VPN	Proxy	Tor
Encryption	Strong end-to-end encryption	Usually minimal or none	Multiple layers of encryption
Speed	10-20% slower than direct connection	5-20% slower than direct connection	50-90% slower than direct connection
Ease of Use	User-friendly apps for all devices	Moderate (browser setup or app)	More technical, requires Tor Browser
Device Coverage	All device traffic protected	Usually browser traffic only	Usually browser traffic only
Cost	$3-12/month for quality services	Many free options, premium services $1-5/month	Free
Anonymity Level	Good	Basic	Excellent
Company Logs	Varies by provider (no-logs policies)	Most log activity	No centralized logging

Best Uses for Each Technology

Person using a laptop

Each privacy tool has specific use cases where it works best. Understanding when to use a VPN, proxy, or Tor can help you match the right tool to your needs.

When to Use a VPN

VPNs are the most versatile of the three, offering a strong balance of security, speed, and convenience. They are ideal for everyday internet users who want broad protection without sacrificing performance.

Public Wi-Fi Security: VPNs encrypt your connection on open networks such as those found in cafes, airports, and hotels. This helps protect your data from other users on the same network.
Preventing ISP Monitoring: VPNs block your internet service provider from seeing your browsing activity. This helps prevent data collection that could be used for targeted advertising or sold to third parties.
Accessing Geo-Restricted Content: VPNs allow you to connect through servers in other countries, which is helpful for watching region-locked streaming content or accessing international websites.
Everyday Privacy: For common tasks like browsing, online shopping, or checking your bank account, VPNs offer an easy way to protect your information without noticeable slowdowns. In fact, 66% of VPN users report using their service for everyday online security.
Device Coverage: Many VPN providers support multiple devices under one account, making them practical for households or users with smartphones, tablets, and laptops.

For more safety tips, see our public WiFi protection guide.

When to Use a Proxy

While not as secure as VPNs, proxies serve specific roles well. They are most effective in low-risk situations where encryption is not essential.

Quick IP Masking: Proxies are useful when you need to appear as if you’re browsing from a different location, such as viewing a site restricted to another country.
Bypassing Basic Filters: Some users rely on proxies to access blocked sites at work or school. While this is common, it often violates usage policies.
Content Caching: Certain proxy servers store copies of frequently visited websites. This can reduce load times, particularly on slower networks.
Application-Specific Use: Proxies work well when you want to route traffic from a single program, such as a browser or game, without affecting the rest of your device’s internet traffic.

When to Use Tor

Tor is the best choice when privacy and anonymity are the top priorities, even if it means sacrificing speed. Its multi-layered routing makes it well-suited for sensitive use cases.

Maximum Anonymity: If you need the highest level of privacy and don’t mind slower speeds, Tor offers protection that outperforms both VPNs and proxies.
Bypassing Internet Censorship: In countries where access to information is tightly controlled, Tor helps users bypass government restrictions to reach blocked websites.
Protection from Tracking: Tor’s routing structure and encryption help prevent advanced tracking methods used by advertisers, state actors, or surveillance firms.
Sensitive Communication: Tor is often recommended for whistleblowers, journalists, or anyone sharing information that requires the utmost confidentiality.

The Electronic Frontier Foundation continues to support Tor for users facing high-risk situations or operating under censorship, where conventional tools may not be enough.

Which Solution Is Right for Your Needs?

Now that you understand how VPNs, proxies, and Tor work, and when they’re most effective, it’s easier to decide which one fits your specific needs. Below is a clear guide to help you make the right choice based on your goals.

Choose a VPN If

VPNs are ideal for users who want consistent privacy and security without compromising convenience or speed. Consider a VPN if:

You need reliable protection for daily internet use, including browsing, streaming, and shopping
You often connect to public Wi-Fi networks in airports, hotels, or cafes
You want all applications on your device to be secured, not just your browser
You need access to geo-restricted websites or international streaming content
You’re comfortable paying a small monthly fee for stronger privacy and better performance

For most people, a reputable VPN offers the best all-around solution. Providers available through Batten’s cybersecurity marketplace include trusted options that are easy to install and support multiple devices.

Choose a Proxy If

While proxies provide minimal security, they can be useful in low-risk scenarios. Choose a proxy if:

You only need to temporarily change your IP address
You want to appear as if you’re browsing from another region
You’re using a single application or browser that needs redirection
Security and encryption are not top concerns, and you’re mostly focused on unblocking content

Keep in mind that free proxy services can introduce security risks. Our fake network detection guide outlines what to watch out for if you decide to use one.

Choose Tor If

Tor is best for users who prioritize anonymity above all else. It is particularly useful in high-risk environments or for privacy-focused communication. Choose Tor if:

You require the highest level of anonymity and can tolerate slower speeds
You need to access content that’s blocked or censored in your country
You are engaged in investigative research, activism, or sensitive journalism
You believe you may be subject to targeted surveillance
You prefer free, open-source solutions and don’t mind using a dedicated browser

While Tor requires more patience and a bit of technical familiarity, it remains one of the strongest tools available for protecting your identity online.

Privacy Tool Recommendations Based on User Needs

Here’s a quick reference guide to help you select the right privacy tool based on your specific situation:

Your Primary Concern	Best Option	Why It’s Suitable
General online privacy while browsing	VPN	Balances security and speed, easy to use across devices
Protecting sensitive data on public WiFi	VPN	Encrypts all traffic, preventing hackers from accessing your data
Accessing streaming content from other countries	VPN	Reliable geo-spoofing with speeds suitable for streaming
Maximum anonymity for sensitive activities	Tor	Multiple encryption layers provide strongest anonymity
Bypassing government censorship	Tor or VPN	Both can work, though Tor may be more effective in heavily restricted areas
Quick, temporary location change	Proxy	Simple setup for basic IP masking when security isn’t critical
Protecting all home devices easily	VPN (router-level)	Can protect every connected device through a single setup
Budget option with decent security	Reputable Free VPN	Limited but better than nothing (see our Free VPN Security Risks guide)

VPN vs. Proxy. Vs. Tor: Other Considerations

If you have higher security needs or want to build a more robust privacy setup, there are a few advanced strategies and common misconceptions worth understanding. Below, we outline how privacy tools can be combined and how to avoid misleading assumptions about their capabilities.

Combining Technologies for Greater Privacy

While each privacy tool functions well on its own, using them in tandem can increase protection under specific conditions. Here are two common combinations:

VPN + Tor

Connecting to a VPN before launching the Tor Browser hides the fact that you’re using Tor from your internet service provider. This setup prevents your ISP from flagging Tor-related activity, which can raise suspicion in some regions. It adds a strong layer of privacy but significantly slows performance due to double encryption and multi-hop routing.

Proxy Within a VPN

Some users choose to route certain applications through a proxy while the rest of their traffic is protected by a VPN. This setup can provide additional IP masking for individual programs, though it adds complexity and offers minimal extra security compared to using a well-configured VPN alone.

Common Myths and Misconceptions

There are several persistent myths about VPNs, proxies, and Tor that can lead to misunderstandings. Here are some of the most common:

Myth: VPNs Make You Completely Anonymous

VPNs hide your IP address and encrypt traffic, but they do not make you anonymous. Tools like browser fingerprinting, cookies, and account logins can still track your activity. VPNs improve privacy, but they are not a total anonymity solution.

Myth: Free Proxies Are Just as Good as Paid VPNs

Most free proxies do not encrypt your data and may log your activity or inject ads. Upwards of 38% of free proxies intercepted traffic in ways that could harm users, including content modification and data collection.

Myth: Tor Is Only for the Dark Web

Tor allows access to .onion sites, but its core purpose is privacy and censorship resistance. It is used daily by journalists, researchers, activists, and individuals who need a secure way to communicate and access information.

Myth: Using Privacy Tools Means You’re Hiding Something

Privacy is a legitimate concern for anyone. Using these tools does not imply wrongdoing. Individuals use them to protect sensitive work files, secure personal information, prevent identity theft, and maintain control over their online footprint.

Practical Tips for Maximum Security

No matter which privacy solution you choose, the following steps can help strengthen your overall protection:

Always use websites with HTTPS encryption
Enable two-factor authentication on important accounts
Keep your device and applications updated with the latest security patches
Use a password manager to generate and store strong, unique passwords
Limit the personal information you share online, especially on social media and unsecured platforms

To get a more complete understanding of your online security posture, visit our personal cybersecurity overview, which includes additional tools and practices that go beyond VPNs, proxies, or Tor.

Conclusion: Making Your Privacy Choice

Choosing the right privacy tool depends on how much security, speed, and convenience you need. VPNs provide strong everyday protection and are ideal for most users who want to stay safe on public Wi-Fi, access restricted content, or prevent ISP tracking.

Proxies are useful for low-risk tasks like bypassing filters or quick IP masking, though they lack encryption. Tor is the most anonymous option but comes with slower speeds and a more technical setup.

Each solution plays a role depending on your situation. A VPN is often the best place to start, with Tor offering added protection when privacy stakes are higher. For advanced users, combining tools can provide extra layers of security. With the right setup and habits, you can take back control of your online privacy.

At Batten Cyber, we recommend starting with a reputable VPN service for everyday protection. As your privacy needs evolve, you can explore more specialized tools like Tor for specific high-security situations.

Ready to Protect Your Online Privacy?

Take control of your digital privacy today with a trusted VPN solution. Batten’s cybersecurity marketplace offers carefully vetted VPN services that provide the ideal balance of security, speed, and simplicity for everyday users.

Frequently Asked Questions

Can I Use All Three Tools at the Same Time?

You can, but it is rarely necessary. Combining VPN and Tor is common for high-risk use cases. Using a proxy inside a VPN is possible, though it adds complexity with minimal added benefit.

Is It Legal to Use VPNs, Proxies, or Tor?

In most countries, yes. However, some governments restrict or block these tools. Always check local laws if you’re unsure, especially when traveling or using privacy tools in restrictive regions.

Do VPNs Work on Smart TVs and Streaming Devices?

Many premium VPNs support smart TVs and streaming boxes either through direct apps or by setting up the VPN on your router, which protects all connected devices in your home.

What Should I Do If My VPN Is Slow?

Try switching to a closer server, changing VPN protocols, or avoiding peak usage hours. Speed also depends on your internet connection, so running a speed test without the VPN can help identify bottlenecks.

How Do I Know If a Proxy or VPN Is Safe to Use?

Stick with well-known providers, avoid free services unless vetted, and read independent reviews. For VPNs, look for a no-logs policy and independent audits. For proxies, avoid any that modify traffic or inject ads.

What Is the Difference Between VPN and Tor?

A VPN encrypts your internet traffic and routes it through a secure server, offering privacy with good speed. Tor, on the other hand, sends your data through multiple encrypted nodes for stronger anonymity but much slower performance. VPNs are ideal for everyday use, while Tor suits high-risk situations.