VPN vs proxy vs Tor: which one do you actually need?
A proxy changes the apparent origin of one application's traffic. It is useful for unblocking a specific website on a specific browser, and not much else. Most proxies are unencrypted, so anyone between you and the proxy can still watch what you do.
A VPN encrypts everything leaving your device and routes it through a server the provider controls. That covers streaming, torrenting, casual privacy and shielding you on public Wi-Fi. Speed is usually within 5 to 15 percent of your unprotected connection.
Tor bounces traffic through three volunteer-run relays and is the only one of the three designed for true anonymity. In exchange you get single-digit megabit speeds, incompatibility with many websites, and a bright red flag to network operators that you are on the Tor network.
Rule of thumb: use a VPN for daily privacy and geo-unblocking, add Tor only when the threat model requires it, and use a proxy only when you cannot install anything else.