Differences between VPN and proxy server include:

Encryption
Encryption is the crucial distinction between a proxy and a VPN. Proxy servers alter your IP address and do not encrypt your online activity. In contrast, VPNs encrypt all data you send and receive.

Data encryption offers an added layer of security for important transactions like online banking or shopping since it prevents thieves from spying on your sensitive data, such as credit card information or login passwords.

Speed
VPNs and proxy servers can potentially impede browsing speed depending on how users reach them. Free proxy servers can be slower and less secure due to limited setup options, a lack of infrastructure, and inadequate support. Although speeds differ between providers, VPNs are typically the speedier choice.

Cost
Free VPN services have limited features and a propensity to exploit your data, so using one is not a good idea. Due to the increased data encryption and security offered by commercial VPNs, consumers frequently use them.

Contrarily, many proxy servers are free to setup. As a result, VPNs are generally the more expensive choice.

Coverage
Proxy servers merely reroute the traffic of a particular app or browser, but VPNs function at the operating system level and redirect all of your traffic through a VPN server.

In contrast to proxy servers, which can only conceal one website or app at a time, VPNs encrypt all web activity, irrespective of the website or application used. Because of this, VPNs provide improved security and protection.

Traffic Log
Compared to proxy servers, most VPN companies don’t keep records of your web activity. If you want complete privacy, pick a VPN provider with a no-logs policy; this ensures that people won’t monitor or record your online activities. A free proxy, in contrast, might track traffic to sell the information to outside parties.