VPS vs. VPN Guide and Comparison

VPS vs. VPN Guide and Comparison
Last Updated: March 13, 2025

Virtual private servers (VPS) are hosting solutions that provide dedicated resources on a shared server, and virtual private networks (VPN) are tools that encrypt internet traffic for security and privacy.

The key difference between these two is their purpose: VPS is for hosting applications or websites, while VPN secures online connections. Your choice depends on whether performance or privacy is your priority.

With the help of our experts, we’ll explain how VPS and VPN work, when to use each, and the best scenarios for their use based on specific needs.

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What Is a VPN and How Does It Work?

How VPN works

VPN, or Virtual Private Network, creates a secure, private network that extends across the internet. It protects data transmitted over the connection and allows users to remain anonymous online.

Once you set up the VPN software, the VPN client automatically encrypts data sent over the network. Before the data passes over the connection, it is routed through the VPN for encryption. With a VPN, it becomes difficult for anyone to intercept or interpret your data since everything is encrypted.

Without a VPN, your data is open to anyone, making it vulnerable and risky to share sensitive information like bank details or emails. In contrast, VPN data goes directly from your ISP to the VPN server, and the VPN connects to the internet for you. This eliminates or minimizes common security risks.

When Should You Use a VPN?

You can use a VPN whenever you connect to the internet, as it operates in the background without impeding your online activities.

Here are some of the more relevant situations when you should use a VPN:

  • Bypassing content blocks: Some countries censor internet content, and a VPN helps you get around these country-specific blocks anonymously. It also allows access to geo-restricted streaming content.
  • Securing data and network connections: With a VPN, your internet connection is highly secure. Any private data over the internet is safe and encrypted.
  • Maintaining online anonymity: Your IP and other personal information remain fully anonymous when using a VPN IP address.
  • Using unsecured Wi-Fi networks: Unsecured, public Wi-Fi networks often put your information at risk. VPN will keep your info safe if you regularly access Wi-Fi outside your home.

What Is a VPS and How Does It Work?

How VPS works

A VPS (Virtual Private Server) is a virtual environment on a physical server, most commonly used for web hosting. To break it down, a server is a computer that stores website data and files. When you enter a domain into a browser, it connects to the server to retrieve the stored files.

VPS hosting uses virtualization technology to divide a single physical server into multiple virtual servers. This setup ensures consistent performance, as one server going offline or undergoing maintenance won’t impact others.

With VPS hosting, users get dedicated server resources that aren’t shared with others. Each VPS server is private and isolated, even when sharing the same physical server. Additionally, it allows you to run multiple virtual operating systems on one machine, enabling seamless switching between systems, like Windows 10 and macOS, without restarting.

When Should You Use a VPS?

VPS is the ideal next step when your site outgrows the limits of a basic shared hosting plan. Here are key scenarios where upgrading to a VPS is the best way forward:

  • When you need more speed and performance: VPS hosting can support high-traffic sites as it is scalable. As your site grows, you experience a higher traffic volume. At this point, you need a web hosting plan that can keep up.
  • When you need a custom server setup: A VPS server offers you more control over the server environment. You get root server access and the ability to choose the operating system, install software, and make other customizations or specific configurations.
  • When you require flexible server resources: With VPS hosting, you can scale up your server resource needs as the site grows. Since you are not restricted to a single physical server, it is easier to increase the resource requirements.

VPN vs VPS Comparison Table

If privacy, security, or bypassing restrictions is the goal, a VPN is the right choice. On the other hand, a VPS is better suited for hosting websites, customizing server settings, or handling high-performance tasks.

Here’s a quick comparison table for an overview of what each technology has to offer.

Feature VPN VPS
Main PurposeSecures internet connections and masks user identity to enhance privacyProvides isolated server space with dedicated resources for hosting applications and websites
How It WorksCreates a secure “tunnel” for data between the user and the internet through encrypted serversVirtualizes a physical server into independent instances, allowing full user control over resources
Best For
  • Protecting data privacy
  • Bypassing geo-restrictions
  • Providing secure remote access
  • Hosting websites
  • Managing applications
  • Supporting custom server environments
Pricing Generally subscription-based and low-costGenerally subscription-based and low-cost
Use Cases
  • Personal privacy
  • Secure connections for remote work
  • Accessing restricted content

Best VPN Service Providers

Choosing the right VPN means weighing security, speed, and ease of use. Each provider offers unique strengths in encryption, server coverage, and privacy policies.

The options below deliver the best balance of protection, performance, and reliability.

  1. ExpressVPN
  2. NordVPN
  3. IPVanish
  4. CyberGhost
  5. TunnelBear

1. ExpressVPN

ExpressVPN homepage
[Source: ExpressVPN]

ExpressVPN delivers fast speeds, strong encryption, and broad global coverage. A strict no-logs policy ensures privacy, while its proprietary Lightway protocol enhances security without compromising performance. The service remains a top choice for users seeking reliability across multiple devices.

Key Features:

  • Network lock kill switch
  • Split tunneling
  • Lightway protocol
  • 24/7 customer support

Pricing: Paid plans start at $3.19 per month.

Pros Cons
High-speed connections worldwideMore expensive than competitors
Strong encryption for data protectionLimits simultaneous connections to five
User-friendly apps for various devicesNo permanently free option
Reliable performance across regions 

2. NordVPN

NordVPN homepage
[Source: NordVPN]

NordVPN offers strong security tools with features like Double VPN and Onion over VPN. AI-driven threat detection blocks malicious websites and phishing attempts, providing an added layer of protection. Unlike VPS hosting, which uses AI for automated resource allocation, NordVPN applies it to safeguard user privacy in real time.

Key Features:

  • CyberSec malware blocker
  • Double VPN encryption
  • Onion over VPN
  • AI-powered threat prevention

Pricing: Paid plans start at $3.39 per month.

Pros Cons
Advanced encryption methodsSome servers experience slower speeds
Large global server networkNo built-in router app
Intuitive interface for easy navigationHigher price for short-term plans
AI strengthens online security 

3. IPVanish

IPVanish homepage
[Source: IPVanish]

IPVanish prioritizes privacy with strong encryption and unlimited device connections. Automatic IP cycling enhances anonymity by regularly changing assigned addresses. A straightforward interface makes it easy to configure settings based on individual needs.

Key Features:

  • Unlimited simultaneous connections
  • 256-bit AES encryption
  • Automatic IP address rotation
  • No-logs policy

Pricing: Paid plans start at $2.19 per month.

Pros Cons
Secure browsing across multiple devicesInconsistent speeds on certain servers
Simple setup and configurationLacks advanced security tools
Competitive pricing for premium plansNo free version available
No restrictions on simultaneous use 

4. CyberGhost

CyberGhost homepage
[Source: CyberGhost]

CyberGhost focuses on streaming, torrenting, and general online privacy. Optimized servers ensure smooth playback on platforms that restrict access based on location. A strict no-logs policy keeps browsing activities hidden from third parties.

Key Features:

  • Streaming-optimized servers
  • Automatic kill switch
  • Ad and malware blocker
  • No-logs policy

Pricing: Paid plans start at $2.03 per month.

Pros Cons
Servers dedicated to specific activitiesSpeed variations across different regions
Strong commitment to privacy protectionNo advanced security customizations
Affordable pricing for long-term plansLimited manual server configuration options
Easy-to-use application interface 

5. TunnelBear

TunnelBear homepage
[Source: TunnelBear]

TunnelBear provides a simple, privacy-focused VPN with strong encryption. The GhostBear feature helps bypass censorship in restrictive regions where VPNs are blocked. A free version with limited data allows users to test the service before committing to a paid plan.

Key Features:

  • Vigilant Mode (kill switch)
  • GhostBear for bypassing restrictions
  • Strong encryption standards
  • No-logs policy

Pricing: Paid plans start at $3.33 per month.

Pros Cons
Easy-to-use interface for beginnersSmaller server network than competitors
Transparent privacy policiesData limits on free version
Free plan available for testingSlower speeds on some connections
Strong encryption for added security 
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Best VPS Hosting Solutions

Selecting a VPS hosting solution requires balancing performance, scalability, and control over server resources. Providers differ in pricing, infrastructure, and customization options.

The following services stand out for delivering reliable performance, flexible configurations, and strong support.

  1. Hostinger
  2. Liquidweb
  3. Ionos
  4. Ultahost
  5. Cloudzy

1. Hostinger

Hostinger homepage
[Source: Hostinger]

Hostinger offers affordable VPS hosting with a focus on performance and user-friendly management. Its plans include full root access, dedicated IP addresses, and SSD storage for faster data retrieval. The intuitive control panel simplifies server administration, making it accessible even for those new to VPS hosting.

Key Features:

  • Full root access
  • Dedicated IP addresses
  • SSD storage
  • Intuitive control panel

Pricing: Paid plans start at $2.49 per month.

Pros Cons
Affordable pricing plansLimited advanced features
User-friendly interfaceLacks built-in DDoS mitigation
Reliable uptimeCustomer support can be slow
Scalable resources 

2. Liquid Web

Liquid Web homepage
[Source: Liquid Web]

Liquid Web provides high-performance VPS hosting tailored for businesses requiring robust infrastructure. Features include real-time monitoring, advanced security, and scalable resources to accommodate growing demands. Its focus on enterprise-level hosting makes it ideal for organizations that require stability and strong technical support.

Key Features:

  • Real-time monitoring
  • Advanced security measures
  • Scalable resources
  • 24/7 customer support

Pricing: Paid plans start at $5 per month.

Pros Cons
High reliabilityHigher pricing than some competitors
Excellent customer serviceNo free tier for testing
Customizable server configurationsComplex setup for beginners
Robust performance 

3. IONOS

IONOS homepage
[Source: IONOS]

IONOS offers versatile VPS hosting solutions with a focus on security and flexibility. Features include customizable configurations, daily backups, and a choice of data center locations. The platform provides strong infrastructure but has a steeper learning curve for new users.

Key Features:

  • Customizable configurations
  • Daily backups
  • Multiple data center locations
  • DDoS protection

Pricing: Paid plans start at $1 per month.

Pros Cons
Flexible pricing plansSteeper learning curve for beginners
Strong security featuresLimited third-party integrations
User-friendly control panelCustomer support responsiveness varies
Reliable uptime 

4. Ultahost

Ultahost homepage
[Source: Ultahost]

Ultahost provides VPS hosting with a focus on performance and affordability. Features include SSD storage, full root access, and free website migration services. The platform’s combination of speed, control, and ease of migration makes it a compelling option for growing websites.

Key Features:

  • SSD storage
  • Full root access
  • Free website migration
  • 24/7 customer support

Pricing: Paid plans start at $4.80 per month.

Pros Cons
Competitive pricingFewer data center locations than competitors
High-speed performance No built-in firewall configurations
User-friendly interfaceAdvanced configurations may be complex
Scalable resources 

5. Cloudzy

Cloudzy homepage
[Source: Cloudzy]

Cloudzy offers VPS hosting with a focus on flexibility and global reach. Features include multiple operating system choices, SSD storage, and a variety of data center locations worldwide. The service supports various workloads but lacks extensive documentation for troubleshooting.

Key Features:

  • Choice of operating systems
  • SSD storage
  • Global data center locations
  • Full root access

Pricing: Paid plans start at $3.96 per month.

Pros Cons
Wide range of configurationsLimited self-help documentation
Competitive pricingFewer server management tools
User-friendly control panelCustomer support responsiveness varies
Reliable performance 

VPN vs. VPS Key Takeaways

A VPN is designed to keep your data secure while browsing the internet. In contrast, a VPS is a service offered by a hosting company to host websites or applications. While it doesn’t inherently keep the information safe, it can facilitate reliable internet connectivity.

When deciding between a VPN and a VPS, consider your business needs and the provider’s reputation. However, there is no right option; it is more of a matter of choosing the right tool for the task at hand. Additionally, you may need both if your requirements do not mainly fall in a specific direction.

Professional web development companies can also help you with your decision-making process. We advise looking for the right agency to partner with for your project!

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VPN vs VPS FAQs

1. Is a VPN or a VPS better for online privacy?

A VPN is better for online privacy because it encrypts digital traffic and conceals your IP address from third parties. While offering a private server environment, a VPS does not provide encryption or anonymity for browsing.

2. Can a VPS be used as a VPN?

Yes, a VPS can be configured as a VPN by installing VPN software, which then allows users to create a private network for secure browsing. However, this requires technical knowledge and does not offer the same built-in security features as commercial VPN services.

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