By knowing our IP address, it's possible to determine our country, city, internet provider and even our physical address.
So... when connecting to a website, you will connect first to your ISP, then the anonymous proxy server, which then connects you, often by a number of routers, to the website. This way, all data sent and received will go through this proxy server, preventing your computer from being traced or identified.
Anyone examining your ISP records will see when your computer is logged on and the IP address of our proxy. However, that's all that can be seen. There is no record of which website we've been to during our free anonymous browser activity.
Some of these proxy servers will also securely encrypt your transfer of data -- so, not only can you not be identified, but also eavesdroppers cannot monitor the content of your browser session. A web anonymizer, depending on the one you choose, may work on any web service, from simple websites to anonymizing email and chat programs.
Although when you use anonymous proxy surfing your identity is hidden on the Internet, you still require security protection on your PC. Your PC is still receiving data from the websites you visit and emails or other documents that you download, so you still need to protect against tracking cookies and malware.
Even though your computer becomes anonymous through the use of a proxy server, it does not mean that the information you send and receive is anonymous; messages can still be intercepted by third parties. To ensure that the contents of your uploads and downloads cannot be deciphered if intercepted, I strongly advise you to use free anonymous browsing with encryption, so your traffic cannot be monitored.
Over the years, I have used and tested a number of free anonymous browsing software. There's little point my providing you with a list of products to try when it's obvious there are better performers than others! So, let's cut to the chase and keep it to the two I believe are the best to use and I continue to use (but there is a rider)...
You can upgrade for a very small fee to get a whole host of benefits or to access their 290 geographical diverse satellite servers, so that your server location is at your choosing.
I use their VPN service, which gives total anonymous security. Take a look at The Features and Benefits to You of Hide My Ass! VPN Service for the details.
Both these programs encrypt the data being transferred to and from your computer using Secure Socket Layer (SSL). This is the same technology used for secure pages by online banks and retail outlets.