What Is a Residential Proxy? 2025 Guide, Types & Uses

What is a residential proxy?

A residential proxy routes your internet traffic through real home IP addresses assigned by ISPs to actual devices. These IPs appear as legitimate residential users to websites, complete with accurate location data and device information. This makes them perfect for web scraping, managing multiple eCommerce accounts, and monitoring SEO performance.

Unlike datacenter proxies that use server farm IPs (which are more likely to be recognized and restricted by websites), residential proxies mimic real user behavior, making them far more reliable for accessing protected content.

How residential proxies work?

Residential proxies create anonymous web browsing by leveraging real home internet connections. When you use one, it completely disguises your digital fingerprint through a sophisticated three-step process:

1. Traffic routing. Your connection gets redirected through an intermediary proxy server instead of going directly to the website.
2. IP assignment. You receive a residential IP address from an actual home device (which can rotate or stay fixed).
3. Identity masking. Your session adopts the exact technical specifications (browser, OS, location) of the residential user.

This system perfectly mimics organic human traffic, allowing you to bypass even the most sophisticated blocking systems while maintaining complete anonymity. Whether you need static IPs for account management or rotating IPs for large-scale data collection, the process remains equally secure and undetectable.

What is a residential IP?

A residential IP is a real-world internet address assigned by ISPs (Internet Service Providers) to physical devices like home routers, smartphones, or computers, making it appear as legitimate consumer traffic. These IPs are registered in public ISP databases with verified geographic locations, allowing websites to identify them as authentic residential connections rather than datacenter proxies or bots. This makes residential IPs ideal for proxy use, as they naturally bypass anti-bot measures while maintaining high anonymity and trustworthiness.

Types of residential proxies

Unlike their datacenter counterparts, residential proxies mimic genuine user behavior, making them invaluable for tasks requiring high anonymity, like web scraping, AdTech, or accessing geo-restricted content. However, not all residential proxies are created equal – their functionality often depends on specific use cases and technical configurations. If you're looking to scale your operations, you can buy proxy servers tailored to your needs. Let’s explore different residential proxies types you can find when shopping around:

Mobile residential proxies

Mobile residential proxies utilize IPs assigned by cellular networks, excellent for tasks that require emulating mobile device behavior.

This type of residential proxy is useful for app testing, location-specific data collection, and accessing mobile-only content. For example, businesses in the travel and hospitality industry might use mobile proxies to gather flight or hotel data from mobile-exclusive platforms.

Mobile proxies are also valuable for AdTech tasks, helping to ensure that ads are displayed correctly on various mobile devices and operating systems.

Static residential (ISP) proxies

Static residential proxies, a.k.a. ISP proxies, assign a fixed residential IP address, making them perfect for long-term tasks that require consistency.

This proxy type is ideal for managing multiple accounts, monitoring price changes on eCommerce platforms like Amazon, or maintaining a stable connection when accessing websites with advanced anti-bot mechanisms.

Rotating residential proxies

Rotating residential proxies automatically switch IPs with each request or at predefined intervals, which is perfect for large-scale web scraping projects. This rotation helps avoid detection by websites with anti-bot measures, such as CAPTCHAs.

Rotating proxies are commonly used for web scraping and accessing geo-restricted targets. However, this residential proxy type only defines a rotation feature. Depending on the provider, you should have control over your residential proxy session type and choose whether to keep the same IP for a predefined period or rotate it with every request.

Rotating residential proxies automatically switch IP addresses with each request or at timed intervals. This constant rotation helps evade anti-bot systems like CAPTCHAs, making them ideal for large-scale web scraping and accessing geo-restricted content.

Unlike session-based proxies that keep the same IP for an entire browsing session, rotating proxies mimic organic traffic patterns. Providers typically offer customizable rotation settings, letting you choose between per-request changes, timed intervals, or sticky sessions for specific use cases.

Dedicated residential proxies

Dedicated residential proxies provide exclusive access to a single residential IP address, offering complete control and consistency for sensitive tasks.

Dedicated proxies are ideal for scenarios where a consistent IP is crucial, such as managing high-value accounts, conducting ad verification, or collecting data from websites with sophisticated anti-proxy mechanisms.

Dedicated residential proxies provide exclusive, long-term access to a single residential IP address. Unlike shared proxies, these offer higher reliability and lower ban risks since you're the sole user of the IP.

These proxies are perfect for sensitive operations requiring consistent identities, including:

• Managing premium social media or e-Commerce accounts;
• Conducting ad fraud verification;
• Scraping websites with advanced bot detection;
• Running long-term automation tasks.

The exclusive nature of dedicated proxies ensures your activities won't be affected by other users' behavior that might trigger IP blocks.

Shared residential proxies

Shared residential proxies offer access to a communal pool of IPs, providing a budget-friendly solution for low-risk tasks. While multiple users share the same IPs, these proxies remain effective for basic data collection and monitoring where high anonymity isn’t critical.

Ideal for SEO tracking, light browsing, or small-scale scraping, they balance affordability with reliable residential IP benefits. However, shared IPs may face higher blocking risks if other users trigger anti-bot measures.

Residential vs. datacenter proxies

When deciding between residential and datacenter proxies, it's essential to understand the key differences. Each proxy type has unique advantages and limitations, making it suitable for specific use cases. Below, we compare them across several criteria to help you choose the right proxy match for your needs.

Choosing between residential and datacenter proxies depends on your specific needs for anonymity, speed, and budget. While both serve as intermediaries, their fundamental differences determine which is better suited for particular tasks:

Which one should you choose?

Residential proxies are your go-to choice for tasks requiring stealth, reliability, and high versatility, as well as the ability to scale your projects without facing restrictions. However, if you’re building a low-cost, high-speed infrastructure for completing basic tasks online, datacenter proxies will do just fine.

When to use residential proxies?

Residential proxies are essential for tasks requiring authentic user behaviour and high anonymity. Here are a few of the use cases where residential proxies come in handy:

• Web scraping & data collection. Bypass anti-bot systems to gather data from protected sites like eCommerce platforms or travel aggregators.
• Ad verification. Check geo-targeted ads as they appear to real users in different locations.
• Price monitoring. Track competitor pricing without triggering rate limits or blocks.
• Geo-restricted content access. View localised content (e.g., streaming, news) as if browsing from another country.
• Multiple accounts management. Safely operate several social media or eCommerce accounts without linking them.
• SEO monitoring. Audit search rankings from different locations without skewed results.
• App testing & QA. Simulate real-user conditions across devices and regions.

Pros and cons of residential proxies

Before choosing residential proxies, it's important to weigh their strengths against potential limitations. While they offer the most authentic browsing experience available, they come with specific considerations that affect their suitability for different projects. Here's a balanced look at what to expect:

Advantages

• High anonymity. Appears as real residential traffic, evading detection.
• Bypass blocks. Access geo-restricted or bot-protected sites effortlessly.
• Geo-targeting. Choose IPs from specific countries, cities, US states, or ZIP codes for localized data.
• Reliability. Lower ban rates than datacenter proxies for long-term tasks.

Disadvantages

• Higher cost. More expensive than datacenter proxies (premium IP sourcing).
• Slower speeds. Dependent on residential ISP networks (not optimised servers).
• IP availability fluctuations. High-demand locations may have limited IPs during peak times.

How to set up residential proxies

Setting up Decodo's residential proxies is as simple and quick as 1-2-3! To get started:

1. Sign up for an account on Decodo's dashboard, find residential proxies by choosing Residential on the left panel, and choose a plan that suits your needs.
2. Open the Proxy setup tab to configure your residential proxies and copy their endpoints. Check our help documentation for more information.
3. Choose the device or application you want to use the proxy with and follow the instructions for setting it up. Decodo offers detailed setup guides for various third-party tools.
4. Once you've successfully set up your proxy, you’re ready to leverage all the benefits!

You can also follow our quick start guide for residential proxies, and if you run into any issues during setup, chat with our 24/7 tech support via LiveChat.

Best practices for troubleshooting

If you're facing connection issues:

• Double-check your proxy credentials (username: password format).
• Whitelist Decodo’s IPs if your network blocks proxies.

If some of your IPs are getting flagged or even banned:

• Reduce request speed to mimic human behaviour.
• Enable automatic retries in your scraping tool.

Final thoughts

Residential proxies provide the most authentic and reliable way to browse, scrape, and automate tasks online while avoiding detection. Whether you need rotating IPs for large-scale data collection, static IPs for account management, or mobile proxies for location-specific testing, choosing the right type ensures seamless performance.

With high anonymity, geo-targeting precision, and anti-blocking capabilities, residential proxies are indispensable for web scraping, ad verification, price monitoring, and more.