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.
Table of Contents
What Is a VPN and How Does It Work?
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?
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 Purpose | Secures internet connections and masks user identity to enhance privacy | Provides isolated server space with dedicated resources for hosting applications and websites |
| How It Works | Creates a secure “tunnel” for data between the user and the internet through encrypted servers | Virtualizes a physical server into independent instances, allowing full user control over resources |
| Best For |
|
|
| Pricing | Generally subscription-based and low-cost | Generally subscription-based and low-cost |
| Use Cases |
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|
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
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 worldwide | More expensive than competitors |
| Strong encryption for data protection | Limits simultaneous connections to five |
| User-friendly apps for various devices | No permanently free option |
| Reliable performance across regions |
2. 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 methods | Some servers experience slower speeds |
| Large global server network | No built-in router app |
| Intuitive interface for easy navigation | Higher price for short-term plans |
| AI strengthens online security |
3. 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 devices | Inconsistent speeds on certain servers |
| Simple setup and configuration | Lacks advanced security tools |
| Competitive pricing for premium plans | No free version available |
| No restrictions on simultaneous use |
4. 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 activities | Speed variations across different regions |
| Strong commitment to privacy protection | No advanced security customizations |
| Affordable pricing for long-term plans | Limited manual server configuration options |
| Easy-to-use application interface |
5. 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 beginners | Smaller server network than competitors |
| Transparent privacy policies | Data limits on free version |
| Free plan available for testing | Slower speeds on some connections |
| Strong encryption for added security |
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
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 plans | Limited advanced features |
| User-friendly interface | Lacks built-in DDoS mitigation |
| Reliable uptime | Customer support can be slow |
| Scalable resources |
2. 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 reliability | Higher pricing than some competitors |
| Excellent customer service | No free tier for testing |
| Customizable server configurations | Complex setup for beginners |
| Robust performance |
3. 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 plans | Steeper learning curve for beginners |
| Strong security features | Limited third-party integrations |
| User-friendly control panel | Customer support responsiveness varies |
| Reliable uptime |
4. 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 pricing | Fewer data center locations than competitors |
| High-speed performance | No built-in firewall configurations |
| User-friendly interface | Advanced configurations may be complex |
| Scalable resources |
5. 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 configurations | Limited self-help documentation |
| Competitive pricing | Fewer server management tools |
| User-friendly control panel | Customer 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!
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.
