What is the difference between a VPS and a VPN

Though the two technological concepts do share two letters in their acronyms, a VPS and a VPN are actually quite different. Letโ€™s explore what makes these two unique concepts so unlike one another and so useful in general!

What is a VPS?

  • A VPS is a Virtual Private Server โ€“ in the case of ChartVPS, itโ€™s optimized for traders in the financial markets and gives you full administrative control of the server.
  • It offers low latency (with ChartVPS itโ€™s under 1ms), stable connectivity, and 24/7 availability (as well as 24/7 technical support with ChartVPS) for fast trade execution.
  • A VPS typically uses load sharing (the distribution of tasks or traffic across multiple servers) to make sure no server becomes overwhelmed. ChartVPS, however, provides you with a set amount of dedicated resources to use as you wish, such as for trading platforms and the like.
  • It is also isolated from other servers on the same physical hardware, meaning each individual server is safe and secure regardless of the status of adjacent servers.
  • Traders can install their preferred trading platforms and algorithms on the VPS for secure and efficient trading.

What is VPN?

  • A VPN is a Virtual Private Network โ€“ itโ€™s essentially a secure connection that encrypts internet traffic and enhances your online privacy by making your identity anonymous.
  • It also lets users access the internet from a remote serverโ€™s location, bypassing geo-restrictions. For example, if youโ€™re located in Canada, you could remotely appear as though youโ€™re browsing from Australia.
  • VPNs are commonly used for secure remote access to private networks or when using public Wi-Fi.
As you can see, these are two very different technologies! A VPS is a virtual server that is a slice of a larger, physical server specifically tailored for traders, providing optimized performance for financial markets. A VPN, on the other hand, is like a tunnel. It focuses on data security, online privacy, and remote network access for various internet activities.
Though the two technologies are technically compatible, you typically shouldnโ€™t connect to a VPN before connecting to a VPS. Doing that could introduce some irritating issues or complications to the procedure, though this all depends on the specific setup and requirements. Here are some of the issues that you could run into by doing this:
  • Performance Impact: Using a VPN with a VPS can create additional latency as a result of the extra encryption and routing processes. This can definitely affect the speed and responsiveness of your connection to the VPS, which can be especially detrimental for time-sensitive activities like trading.

  • IP Conflict: You should note that there are some VPS providers who require you to connect directly from your IP address โ€“ in other words, with no VPN โ€“ as a security measure. This means that using a VPN could lead to an IP conflict, which would stop you from getting into your VPS.

  • Firewall and Access Restrictions: Some VPS providers have strict firewall rules or access controls. Since connecting via a VPN means your IP address may not be recognized, you might encounter difficulties accessing the VPS.

  • Trustworthiness of VPN Provider: Different VPN providers have varied levels of trustworthiness. As such, the security and privacy of your connection entirely depend on the reliability and trustworthiness of the VPN service provider. Using an untrustworthy or poorly configured VPN could expose your data to risks.

  • Issues with RDP: Connecting to a VPN before accessing a VPS involves tunnelling. What this means is that the VPN establishes a secure and encrypted "tunnel" between your local device and its server. This tunnel is the thing that protects the confidentiality and safety of the data transmitted between your device and the VPN server. If the VPN is not configured properly, it could lead to a lost Remote Desktop Protocol (RDP) connection to the VPS. This sort of issue could happen due to the VPN server not allowing traffic to pass through to the VPS, or due to conflicting network settings between the VPN and VPS. If this happens, your RDP connection may fail, preventing you from accessing the VPS as intended.

With all this in mind, use a VPN alongside a VPS at your own risk โ€“ if you decide to do so, it’s crucial to set up the VPN and VPS configurations correctly so that theyโ€™re compatible with each other.
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