15 Feb 2025

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What is a proxy, and what is it used for?

What is a proxy, and what is it used for?

A proxy is used to encrypt the provider and the user’s real location. But depending on the type of proxy, other goals can be achieved. How does a proxy work, and how to choose the best option?

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Maintaining anonymity: what a proxy can “do” and what it is used for

A proxy is an additional link between the user and the Internet to preserve the anonymity of the IP address. With the help of a proxy, all requests sent to the Internet first pass through your PC, then the proxy changes your IP address, and only then it fulfills client’s requests. In this way, you and your provider's location are encrypted.

In the crypto space, proxies are used to abuse IP addresses, bypass the projects’ anti-fraud system (protection against bots), and obtain financial benefits from these actions.

Abuse is the use of flaws or bugs to bypass some rules. In crypto, this term refers to a tool for creating additional referrals and receiving rewards from referral programs, promotions from crypto exchanges, or crypto projects without real and active users.

When used appropriately, abuse allows you to bypass the rules of the promotion and create several accounts for one person to receive a reward.

What kind of proxy to choose?

According to the type of IP address, proxies are divided into:

  1. Regular – the IP address is static.
  2. Dynamic – the IP address is constantly changing.

Dynamic proxies are more expensive but universal.

Proxies also differ in quality:

  • General – used by many users with the same address, these proxies are available for free for a functional test or for a penny.
  • Private – used by 1-2 users, their price is higher, but the probability of use with the same intention is minimal.
  • Unique – available to 1 user only, they are expensive, but the probability of a ban when used is close to 0.

Each type of proxy has its own purpose. General proxies are mainly used to increase activity in social networks. Private and unique – mainly for financial transactions, where you need to make a deposit, conduct a trade turnover, etc.

Proxy prices?

The cost of a proxy depends on the quality, number of possible IP addresses, and purposes.

  • General – $0.02 per month. They are mainly sold in packs of 100-1000 pieces.
  • Private and unique – $5-10 per month.

There are many websites where you can buy proxies with different functionality. To choose the best proxy, determine exactly what tasks need to be solved with its help and calculate the budget.

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