Proxies in the Crypto Industry: What They're Used For | Syndicate

In the world of cryptocurrencies, anonymity and accessibility are critically important. Many crypto exchanges, blockchain services, and DeFi platforms restrict access for users from certain countries due to regulatory requirements. Additionally, some governments block access to services at the provider level. However, there’s a way to bypass these restrictions through proxy servers.

Every computer connected to the Internet has its own IP address, which can be used to determine the country, city, internet service provider, and even the specific user’s device. Proxy servers hide a user’s personal data by connecting through another unique IP address. This way, all requests to websites don’t go directly but first through this server. In other words, the website sees not the user’s real IP address but the proxy’s address. This tool is also used for other tasks in the crypto sphere: secure access to exchanges, protection against phishing attacks and hackers and scammers, managing multiple accounts, and participating in airdrops and testnets. Additionally, they allow multiple devices to share a single Internet connection, reduce traffic consumption, and speed up page loading by caching previously visited data.

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Where and How to Get a Proxy?

Before choosing a proxy, it’s worth understanding what exactly you need it for.

For simple tasks: to access a website blocked in your country or to hide your IP address while browsing web pages. In this case, you can use free public proxies. They’re suitable for basic use but don’t guarantee stability or security.
For professional tasks: social media automation, data scraping, or managing multiple accounts simultaneously. In such cases, it’s worth choosing paid proxy servers: faster, more stable, and provide better data protection.

Free or public proxy servers are open servers that anyone can use. To connect to such a proxy, you just need to know its IP address and port and be able to enter this data into your browser or system settings. That’s why such proxies are popular among beginners—they’re simple to use and don’t require any costs. Their main advantage is availability without payment. If one server stops working, it’s easy to replace it with another because the list of free proxies is constantly updated.

However, such services also have significant disadvantages. Because the same server is used by hundreds of people, the connection is often unstable and slow. Such proxies can disconnect at any moment. Additionally, they have a low level of anonymity—websites with good protection easily recognize a free proxy and can block access. Because of this, free proxies aren’t suitable for serious or work tasks where stability, security, and speed are important.

You can rent private proxy servers from specialized companies that provide such services online (for example, webshare.io, proxyline.net, proxy-solutions.net, geonix.com, proxy-seller.com). Then independently choose a server with the necessary parameters—connection speed, anonymity level, or location in a specific country. Such proxies rarely fail, provide a high level of data security, and allow you to work calmly even with multiple accounts or complex online systems. Private proxies are provided for personal use to one person or a small group of users. Access to them is restricted: you can only connect from a specific IP address or using a login and password.

Another important advantage is user support. If technical problems arise, the provider usually offers round-the-clock assistance. Additionally, you can order automatic IP address rotation, remote access configuration, or proxy chain creation for maximum anonymity. The price of a proxy depends on its type, country, speed, anonymity level, and additional services offered by the provider.

What to Consider When Choosing a Proxy

Country (server location). Choose the country from which you need to connect. For example, if a website is only accessible in the US, it’s better to choose an American proxy.
Connection speed.
Uptime (reliability) — an indicator of continuous server operation. A good proxy has 99–100% uptime.
Distance to the server. The farther the server is from you, the greater the signal delay. For fast operation, it’s better to choose the nearest location.
IP address cleanliness. Check that the IP isn’t in spam databases—otherwise some websites may block you. This can be done through free online services (whatismyipaddress.com, 2ip.io)
Anonymity level. If complete privacy is most important to you, choose elite proxies that maximally hide your personal IP address.

Types of Proxy Servers

There are four popular proxy protocols: CGI, HTTP, HTTPS, and SOCKS (4, 5).

CGI proxy (anonymizer) is a web proxy in the form of a regular web page without an open port. You just need to go to a website with a web proxy, enter the address of the desired resource, and press the button to connect. This type of proxy provides anonymous surfing connection but only works within an open browser tab.

HTTP proxy allows you to connect to the Internet and browse websites through an intermediate server. It supports caching, which makes page loading faster, and comes in different levels of anonymity—from transparent to completely anonymous (elite). Unlike CGI proxies, it’s suitable for full-fledged web content use and can be applied to all browsers on a computer through system settings. HTTPS proxy works the same way but adds SSL encryption for secure browsing of protected websites with https addresses.

SOCKS proxies are used for individual applications, allowing programs that initially didn’t have Internet access through a proxy to connect through a server. They can work with any type of traffic and support various data transmission protocols. SOCKS5 differs in that it can work with a larger number of data types (via UDP), supports the new Internet address format (IPv6), and allows password-protected connections, making it more reliable for modern services. They allow bypassing Telegram and Netflix blocks and provide anonymous access to other web resources.

Another type of proxy server is by Internet protocol version.

IPv4 is the old version of the Internet protocol that’s still widely used. It uses 32-bit addresses (approximately 4.3 billion total) and a mask to separate the network address from the device address. Example IPv4 proxy 125.44.24.143:

IPv6 is the new version of the protocol that has a 128-bit address space, allowing the creation of many more addresses (2.128). This type of address extends decades into the future and doesn’t require the usual address mask. An IPv6 proxy looks like this: 2001:0GE8:AA20:0002:0000:0000:0000:00FB. This type is more secure because it has built-in encryption and authentication. It also allows devices to find each other (“neighbors”) and exchange data without additional configuration, which is convenient for modern networks.

IPv4 proxies are supported by all websites and services, while IPv6 proxies only work with resources that support the new standard.

Proxy servers also differ by IP address anonymity level.

Transparent. Least anonymous, pass traffic through themselves, but websites see your real IP address. Only suitable for bypassing blocks or restrictions for residents of certain countries.
Distorting. Show an incorrect or partially correct IP address. They partially hide identity but can still reveal your provider. Used for bypassing blocks and downloading files.
Anonymous. Hide your real IP address, but the website sees that you’re connected through a proxy. Good for most tasks where privacy is important.
Elite. Completely hide your IP and the fact of using a proxy, creating the impression of a direct connection. The most expensive but also the most secure for confidential work on the Internet.

What is a Proxy Pool and What’s It Used For

A proxy pool is a set of proxy servers through which your traffic passes sequentially or in parallel. Instead of all traffic coming from one IP address, requests are distributed among multiple addresses. This approach is needed for large-scale tasks: scraping, automation, managing a large number of accounts or processes that make a large number of requests. A pool reduces the risk of blocking, allows more simultaneous requests, and increases system resilience—if one proxy is blocked, others continue working.

When choosing a proxy pool, it’s important to consider the number of requests per hour, target websites, IP type (rotating, static), and their quality. For serious scraping, rotation of hundreds of IPs is often used (for example, 300–400 addresses every 2–3 hours). Large websites with advanced protection systems require a larger pool and careful rotation management.

Types of IP addresses when building a proxy pool:

DC (data center) — IPs from server data centers. The most common and most affordable in price, but with lower IP address quality.
Mobile — mobile operator IPs, the hardest to obtain and the most expensive. They accurately mimic a real user with an actual mobile device. Websites block such connections less frequently, so they’re often used in SMM, traffic arbitrage, and other tasks.
Residential (home) — IPs from home networks that give the appearance of a regular user but are harder to obtain and more expensive than DC. Using home IP addresses can create legal risks and problems related to using other people’s private networks without their permission.

Proxy Server Configuration

in the browser, if you want anonymity to work only while browsing websites;
in the system, so the proxy applies to all programs that access the network;
through special applications (so-called “proxifiers”), which give more control over the intermediary server’s operation.

After you’ve chosen a proxy server, it’s important to make sure it actually works and is ready for use. For this, it’s enough to use a special online service for checking proxies (for example, proxys.io, stableproxy.com, proxy-seller.com). Copy the IP address and port of the desired server and paste them into the verification form on the website. If the service requests additional data (login and password for access), enter them in the appropriate fields. Then press the “Check” button. After a few seconds, you’ll see the result: whether the connection is active, what the connection speed is, and whether anonymity is ensured. By the way, many modern proxy providers already have a built-in verification function, so you can test the server directly on their website before purchasing or using it.

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