Understanding Different Types of VPNs: A Beginner-Friendly Guide

Stephen Thompson

Last Updated: 26/06/25

Virtual Private Networks (VPNs) come in several flavors, each suited for different needs. This guide will demystify the types of VPNs in clear, accessible language – perfect for beginners and entrepreneurs. We’ll focus on personal VPNs (the kind you use at home or on public Wi-Fi) and also give a brief overview of business VPNs (used in workplace settings). Along the way, we’ll explain common VPN protocols and tunneling methods – like PPTP, L2TP/IPSec, OpenVPN, IKEv2, and WireGuard – in simple terms. Finally, we include a handy comparison chart so you can quickly see the differences side-by-side.

What Exactly is a VPN?

A VPN (Virtual Private Network) is a service that creates an encrypted tunnel between your device and a VPN server. By routing your internet traffic through this secure tunnel, a VPN hides your real IP address and location, making it appear as if you’re connecting from somewhere else. In simple terms, a VPN is like a private, secure pathway through the public internet. This protects your data from snoopers (like hackers or even your Internet Service Provider) and can help you bypass censorship or geographic content restrictions.

What is a VPN? – Learn All About a VPN

Key benefits of VPNs include:

• Privacy: Your internet traffic is encrypted and appears to come from the VPN server, not your actual device. This keeps your online activity private from outsiders.
• Security: The encrypted tunnel shields sensitive data (passwords, business files, etc.) when using untrusted networks (like coffee shop Wi-Fi).
• Geo-Unblocking: VPNs let you connect through servers in other regions, which can bypass geo-blocks and access content or websites not normally available in your location (for example, streaming a show that’s only on a foreign Netflix library).
• Bypassing Censorship: In restrictive networks or countries, a VPN can help reach blocked sites by tunneling out to an uncensored location.

All VPNs achieve these goals in broadly similar ways (using encryption and tunneling), but they differ in how they are set up and used. Next, we’ll explore the main categories: personal VPNs for individual use, and business-oriented VPNs like remote access and site-to-site VPNs.

Types of VPNs by Usage: Personal vs. Business

VPNs are generally categorized by their usage and scope. The three most common types are: Personal VPNs, Remote Access VPNs, and Site-to-Site VPNs. Let’s break down what each means, who uses them, and how they work.

Comparison of VPN Types and Their Features

Before diving into the details, check out our side-by-side comparison of the main VPN types we will discuss in more detail. This chart highlights each type’s purpose, who typically uses it, what protocols or setups are common, plus major pros and cons.

Personal VPNs (Consumer VPN Services)

A personal VPN (also called a consumer VPN) is likely the kind of VPN you’ve seen advertised by services like ExpressVPN, NordVPN, or Surfshark. It’s the VPN you install on your personal devices – your laptop, smartphone, tablet, etc.. You use a VPN client app to connect to one of the provider’s servers in a location of your choice. Once connected, all your internet traffic goes through that VPN server.

What this means: Websites and online services will see the VPN server’s IP address instead of yours, effectively spoofing your location (e.g. you could appear to be browsing from another country). Meanwhile, the connection from your device to the VPN server is encrypted, enhancing privacy on public networks.

Typical use cases: Personal VPNs are ideal for protecting privacy online and bypassing restrictions. People use them to browse anonymously, shield their data on public Wi-Fi, unblock streaming content from other regions, and avoid local censorship or ISP throttling. For example, an entrepreneur traveling abroad might use a personal VPN to securely check email via hotel Wi-Fi, or to access region-specific market data.

Key features of personal VPNs:

• Easy to use: Personal VPN services are designed for non-technical users. You usually just install an app and click “connect.” Personal VPNs are simple to set up and require minimal configuration.
• VPN client software: You do need to run a VPN app or configure your device’s VPN settings to connect. The client handles encryption and tunneling for you.
• Third-party servers: Your data goes through a third-party VPN server (operated by the VPN provider). This is different from business VPNs which might use company-owned servers. Any paying customer of that VPN service can use the shared servers.
• Multiple protocols: Personal VPN apps often support several VPN protocols (explained later). Modern services commonly use OpenVPN, IKEv2/IPSec, or WireGuard by default – all of which provide strong security. Older options like PPTP or L2TP/IPSec might be available for compatibility.
• Pros: Great for privacy and security on the go; can bypass geo-blocks for streaming; very user-friendly.
• Cons: Relies on trusting the VPN provider (since your internet traffic flows through their servers); may slightly reduce speed due to encryption; doesn’t give access to private work networks (since it’s focused on reaching the public internet in a secure way).

In short, personal VPNs are geared toward individuals who want a safer, freer internet experience for personal reasons. If you’re an entrepreneur or casual user wanting to protect your data and perhaps appear in another region online, a personal VPN is the tool for the job.

Remote Access VPNs (Business VPN for Teleworkers)

A remote access VPN is commonly used in workplaces to let employees connect to a private corporate network from a remote location. Think of it as the business counterpart to personal VPNs. Instead of connecting your device to a generic VPN server on the internet, you’re connecting through an encrypted tunnel into your company’s internal network.

How it works: Just like a personal VPN, each device runs a VPN client program. But rather than choosing from thousands of global servers, you typically have one (or a few) VPN gateways set by your company’s IT department. Only authorized users (e.g. employees or contractors) can connect – it’s not open to the public. Once connected, your device is virtually “inside” the office network, allowing you to access internal resources (like file servers, databases, intranet sites) as if you were in the office.

Typical use cases: Work-from-home employees and business travelers rely on remote access VPNs to safely reach office networks. For instance, a remote VPN lets a salesperson on the road securely access the company CRM system, or lets an IT technician remotely administer office computers. Some tech-savvy individuals also set up a remote access VPN to their home network – for example, to access a home media server or NAS while away.

Key features of remote access VPNs:

• Secure tunnel into a private network: It creates an encrypted path from the user’s device over the internet into the company’s network. All data is encrypted in transit, protecting it from interception on public Wi-Fi.
• Client-server model: Similar to personal VPNs, but the VPN server is typically on the company’s side (often a dedicated VPN appliance or server in the office). Each remote user runs client software to connect.
• Limited server choices: Usually there’s only one or a few VPN servers (gateways) to connect to – often one per office location or data center. These are maintained by the organization’s IT team.
• Authentication: Remote VPNs usually require strong user authentication (like company credentials, two-factor tokens) since they grant access to sensitive internal systems.
• Common protocols: Many remote access VPNs use IPSec-based protocols. For example, Cisco AnyConnect (a popular enterprise VPN) uses IPSec/SSL, and others might use OpenVPN or IKEv2. Some Windows-based setups use L2TP/IPSec or SSTP. The choice depends on the company’s VPN solution (hardware or software).
• Pros: Enables secure remote work – employees can use office network resources from anywhere; encrypts data across the internet; helps maintain business continuity (work from home, etc.).
• Cons: Requires IT setup and management; each user needs to configure the VPN client (though this is often straightforward); access is restricted to approved users; if many users connect, it can load the company’s VPN server/bandwidth.

In summary, remote access VPNs are the go-to solution for businesses to extend their private network’s reach to remote users. If you run a business with offsite team members, a remote access VPN ensures everyone can work securely as if they’re in the office.

Site-to-Site VPNs (Network-to-Network VPN)

A site-to-site VPN connects entire networks with each other. This is often used by larger businesses or organizations that have multiple offices in different locations. Instead of each device running a VPN client, the network routers or firewalls at each site handle the VPN connection. The result is that the two networks (Site A and Site B) are merged into one secure network over the internet.

Think of it as creating a secure “bridge” between, say, your headquarters and a branch office. To devices and users on those networks, it feels like they’re on the same local network even though they’re geographically apart.

Two varieties: Site-to-site VPNs come in two sub-types:

• Intranet-based site-to-site: Connects networks of the same organization. For example, linking a company’s New York office network with its London office network so that data can flow securely between them. Everyone in both offices can share resources as if they were in one location.
• Extranet-based site-to-site: Connects networks of different organizations for limited partnership access. For instance, a business could use an extranet VPN to connect with a partner or supplier’s network. This way they can share select information securely, but usually with restrictions in place (so the partner only accesses specific resources).

How it works: Typically, a router, VPN gateway, or firewall device at one site is configured to automatically establish a VPN tunnel to a counterpart device at the other site. One acts as a VPN server, the other as a client, and they authenticate each other and encrypt all traffic between the two networks. Users on either network usually do not need to run any VPN software – the connection is handled transparently at the network level.

Typical use cases: Large enterprises, government agencies, or any organization with multiple physical locations use site-to-site VPNs to unify their network. For example, a retail chain might link all its store networks back to the corporate data center. Or a company might create a site-to-site VPN with a contractor’s network for a joint project.

Key features of site-to-site VPNs:

• Network-level connection: It’s a permanent router-to-router (gateway-to-gateway) VPN link. Once set up, it’s always on and connects entire networks rather than individual machines.
• No client software on individual devices: Users at each site don’t need to initiate the VPN; they just use the network normally. The VPN is established between the sites’ gateways.
• Common protocols: Site-to-site VPNs often use IPSec in tunnel mode (an encryption protocol suite) because it’s well-suited for network-to-network encryption. Some implementations might use OpenVPN in a gateway mode, or even specialized protocols from network vendors. The specific protocol can vary, but IPSec is extremely common for site-to-site.
• Pros: Seamless connectivity between locations – it’s as if you merged the LANs; highly secure communication over the internet for inter-office data; efficient for constant data exchange (e.g., database replication, VoIP between offices).
• Cons: More complex setup – typically needs skilled network engineers to configure; both sites need compatible hardware or software; troubleshooting can be harder if something goes wrong in the tunnel. Also, a site-to-site VPN is not for general internet usage – it’s intended to link private networks (you wouldn’t use it to, say, hide your IP for web browsing; that’s what personal VPN is for).

In essence, site-to-site VPNs are a backbone technology for businesses that need their physically separate offices or networks to function as one. Entrepreneurs likely won’t need this unless your business grows to have multiple offices or you need to integrate closely with another company’s network. But it’s good to know it exists as a VPN option for larger-scale network connectivity.

Summary so far: We’ve covered VPNs by their use-case categories:

• Personal VPNs – for individual users to secure their internet connection and privacy (B2C use).
• Remote Access VPNs – for employees to securely connect into a company’s network from outside (B2B remote worker use).
• Site-to-Site VPNs – for permanently connecting entire networks (office-to-office or business-to-business links).

Now, regardless of type, all VPNs rely on VPN protocols to actually create those encrypted tunnels. In the next section, we’ll explain the major VPN protocols and tunneling methods you’ll come across, and how they differ.

Quiz: Discover the Right VPN Type for You!

Answer the questions below of this quick quiz to find out which VPN type is perfect for you!

Conclusion and Tips for New VPN Users

For most individual users or entrepreneurs, a personal VPN service is the practical choice. It will encrypt your connection and protect your privacy when you’re online, using well-tested protocols like OpenVPN or WireGuard behind the scenes. When choosing a personal VPN, look for a reputable provider that offers the features you need (many devices support, no-logs policy, good speed, servers in countries you need, etc.). Remember that the specific protocol (OpenVPN vs IKEv2 vs WireGuard) can often be left on the default unless you have a reason to change it – the VPN app will pick one that balances security and performance. But it’s nice to know that, for example, if you need better mobile stability you might switch to IKEv2, or for maximum speed give WireGuard a try.

For a business or team environment, think about what you’re trying to achieve:

• If you need to enable employees to log in to an office network remotely, set up a Remote Access VPN. This could be through a business VPN service or by configuring a VPN server (some small businesses even use a high-end router or a server with OpenVPN to allow staff to connect in). It provides security and peace of mind that your company’s data stays encrypted when accessed from outside.
• If you need to permanently link offices or networks, consider a Site-to-Site VPN solution. This usually involves networking hardware or cloud VPN gateways. It’s more complex, but for the right scenarios (multiple offices, or an extranet partnership) it can save money and improve collaboration by securely connecting networks.

In any case, VPNs are powerful tools for security and connectivity. As a beginner, focus on the fundamentals: use a VPN when on untrusted networks, choose modern protocols if you have the option (since they improve security and speed), and always keep your VPN app updated. We hope this guide clarified the landscape of VPN types and protocols in an easy-to-understand way. With this knowledge, you can make informed decisions about which VPN setup is right for your needs – whether it’s streaming your favorite show privately or ensuring your startup’s team can work safely from anywhere in the world. Stay safe and connected!

❓ Frequently Asked Questions (FAQs) About VPN Types