If you're thinking about purchasing residential proxies for one reason or another, you definitely don't want to go in blind, unaware of how these tools work and the different variations. So how will you choose the residential IP address that perfectly aligns with your needs?

Building on this idea, our blog will talk about residential proxies, how they function, the different types, and their applications. By reading, you will be better positioned to make an informed decision and select the ideal residential proxy to achieve your online goals.

Understanding Residential Proxies

Think of these tools as middlemen between your device and the internet. Their job is easy—to ensure your internet traffic flows smoothly by fixing problems related to IP bans, geo-blocks, and privacy.

Here is how they work:

When you connect to the web via a residential proxy server, it will swap your original IP address with a residential IP address, whose features depend on the type of residential proxy and your goal. Regardless, all the magic happens at this new IP address, and to understand why, we must explain where it comes from.

While there are many channels a residential proxy provider can use to source residential proxies, they all lead back to one origin—real internet users.

A provider may create a partnership where individuals agree to share their IP addresses in exchange for specific benefits, like a cash payout. Alternatively, the company may partner with an internet service provider that agrees to share customer IP addresses.

Types of Residential Proxies

So, you see, a residential IP address is real. It is indistinguishable from a regular IP address, and this is what makes it so valuable because websites recognize it as a real user affiliated with an actual internet service provider. That being said, here are the different types of residential proxies:

Shared Residential Proxies

As you can tell from the name, shared residential proxies offer IP addresses shared by multiple users simultaneously. Essentially, a group of internet users engaging in different activities all get assigned the same IP address.

This configuration comes with its fair share of advantages and disadvantages, as you will see below:

Pros

- They are affordable

Shared residential proxies are affordable and readily available because the providers use fewer resources to administer them as multiple users are all assigned one IP address.

- They are scalable

Since one IP can serve many individuals, these servers offer more coverage, allowing providers to scale up their residential proxy service easily. This is why residential proxies are best for users who want access to geo-restricted content—providers usually maintain a large pool of IP addresses spread across different countries and offer them as rotating residential proxies or static residential proxies.

- They offer private traffic sessions

Shared residential proxies are good for privacy for two reasons. First, the IP address is sourced from a residential internet connection, meaning websites won't easily detect it.

Second, because many users share the same IP address, tracing it to a single person becomes difficult, making shared residential proxies all the more anonymous.

Cons

- Reduced performance

You definitely don't want to work with shared residential proxies if your application demands heavy performance, such as 4K video streaming or gaming. Because many users share one IP address, high peak-hour traffic can slow your application's performance, causing frustration.

- They can be risky

Neither you nor the provider has any control over what users decide to do with the shared residential proxies.

Suppose someone uses the IP for malicious activities like spamming and hacking. In that case, websites might blacklist it, and this impacts all users sharing the same IP, abruptly blocking you from accessing specific websites.

That's why you are better off working with shared rotating residential proxies where the IP changes after some time. Better still, always opt for a provider that has clear terms of use and offers automatic IP replacements.

- Less control over IP reputation

As mentioned above, any restrictive action websites take against a shared residential proxy affects all the users on that address. This makes such servers particularly risky for online business and personal reputation.

- Security concerns

The shared nature of these proxies puts users in danger in case of a data breach. Say, for instance, a provider sells you compromised residential proxies; any security risk will affect all users sharing that IP.

In summary, the primary benefits of shared residential proxies stem from their affordability, scalability, and anonymity. However, if any user utilizes them for malicious activities, it can cause complications for everyone using that IP.

Dedicated Residential Proxies

When you opt for a dedicated residential proxy, the assigned residential IP is yours and yours alone. This means no reputation issues, peak traffic slowing performance, or security risks because you are responsible for the IP.

Building on this, we've listed some of the pros and cons of dedicated residential proxies to make it easier for you to decide whether they are the right fit for your internet needs:

Pros

- Exclusive

The main advantage of dedicated residential proxies is that the residential IP is reserved for you. Therefore, its behavior will not be influenced by other users, meaning you don't have to worry about sudden blocks or reduced performance.

- Enhanced performance

Dedicated residential proxies are better designed for critical tasks that demand better performance because the traffic is yours to consume.

With such a proxy network, you're always first in line for whatever activity you are doing, whether it is managing high-profile social media accounts, competitive analysis, ad verification, or improving online anonymity.

- Consistent functionality

With dedicated residential proxies, you never have to worry about sudden performance drops because you are in control of the assigned IP address and its load.

Cons

- They are expensive

Dedicated residential proxies are significantly more expensive than shared proxies. When you choose this intermediary server, you will be paying for the exclusivity that comes with one IP address and all its benefits.

- They lack of rotation capability

Unfortunately, you can't use dedicated residential proxies for tasks that require IP rotation. Most providers offer static residential proxies ideal for activities needing a consistent IP address, such as accessing geo-restricted content.

- They aren't always available

The exclusivity of dedicated residential proxies comes at a price. Think of a situation where all available dedicated residential IPs are currently in use by internet users around the world; in such a case, the provider will be unable to serve new clients until an IP becomes available.

That's why you may sometimes receive the message "Out of stock" when trying to purchase dedicated residential proxies.

Residential Vs. Datacenter Proxies

Even with all we have discussed regarding residential proxies, you may still be torn between them and their datacenter counterparts.

While both proxies will swap your IP with an alternative, the experience will differ. Residential IP addresses come from real users and their ISPs, whereas datacenter proxies originate from third-party cloud servers.

Therefore, if you want to perform sensitive tasks where confidentiality is crucial, like web scraping, a residential proxy is your best bet because these IPs resemble real users. However, if you engage in speed-sensitive tasks like gaming, you are better off with datacenter proxies. These are faster than residential proxies because their performance is independent of private users.

Residential Proxy Use Cases

Now that you understand residential proxies and how they differ from datacenter servers, what can you do with them? Below is a rundown of common applications for both shared and dedicated residential proxies.

Shared Residential Proxies Use Cases

Shared residential proxies can help you do the following:

- Data scraping

Data has become a valuable resource in the digital age, but access has always been complex. But with shared residential proxies, you can perform data scraping minus the risk of detection.

With a residential IP, websites will find it difficult to detect your data scraping tool, especially when you opt for rotating residential proxies. With the right tools, you can mimic real user behavior while also balancing the data scraping requests across a pool of shared residential IP addresses, keeping the entire process undetected.

- Social media management

A shared residential proxy should definitely be among your social media management tools for many good reasons. For example, shared residential IP addresses can help you avoid detection when automating tasks like posting, replies, and content curation.

A shared residential proxy also allows you to manage multiple social media accounts from the same IP. Most social networks allow a limited number of accounts you can create from a single IP. Creating more than that can get your IP address blocked. A shared residential proxy pool allows you to evade this threshold.

- Ad verification

If your business relies on online ads to boost sales, you will want to perform ad verification tasks at some point down the road. Shared residential proxies can come in handy because you can use them to mimic real users in different locations to see if your ads are being shown to the right audience and websites.

Dedicated Residential Proxies Use Cases

Here are some of the applications of dedicated residential proxies:

- Social media management

Just like their shared cousins, dedicated residential proxies can be used for social network management. While these proxies aren't flexible enough to allow IP rotation, a static residential IP will facilitate a stable and secure connection that minimizes the risk of getting flagged.

If you are using a mobile device, you can opt for mobile residential proxies that offer a dedicated IP sourced from a mobile network service provider.

- Market price monitoring

The eCommerce space is highly competitive, so you must conduct regular market price monitoring to ensure your business is at par with your competitors. Using a dedicated residential proxy reduces the chance of triggering security mechanisms like CAPTCHA when visiting different websites to monitor prices.

- Online privacy and security

Finally, dedicated residential proxies are ideal for privacy-sensitive situations because they are not shared with other users. Use them for financial transactions, journalism, academic research, and any other situation you feel like keeping your identity hidden.

Are Residential Proxies Legal?

As a first-time proxy user, you may wonder, "Is this legal? Will I get in trouble for using residential proxies?" The simple answer is that it depends.

A hacker who uses residential proxies to conduct illicit activities will face the consequences if caught. Hence, as long as you follow the law, you should be clear.

Finally, ask yourself this: Can I trust the residential proxy provider? Are they transparent about how they source their IPs? Only work with an ethical provider with a good reputation.

Conclusion

We have come to the end of our discussion on residential proxies. As we wind up, we reiterate the importance of knowing your residential proxy network and its strengths and weaknesses.

Choose dedicated servers when you want static residential proxies to facilitate a smooth and stable connection to a website. However, if your goal is to mimic multiple users to evade detection, shared servers are your best bet because they offer rotating residential proxies.

If you're using a mobile device, work with mobile residential proxies. They offer IP addresses affiliated with mobile service providers—an internet service provider that offers internet access for mobile phone users.

Finally, be careful with the company you decide to work with. Premium providers source their proxies ethically and transparently, which is the best way to ensure you won't run into any issues down the road.

Whatever you do, stay away from free residential proxies. Most free providers don't disclose how they get their IPs, and others are straight-up scams designed to infect your device with malware and steal confidential information.

Work with reputable providers who offer a reliable residential proxy network, with strict monitoring and clear privacy policies. Here's to a smoother, more free-flowing internet traffic!