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In super basic terms: When ever you connect to a site it sees your IP address. Your IP address essentially tells them where your connecting from, in some cases down to your street address. Obviously a bad thing from a security prospective. What a VPN does is essentially mask your IP, you connect to it and it connects you to a different place then through it you connect to the web site. So if you’re sitting in some city in the US you connect to a VPN in Denmark when you visit a web site the site will think you’re in Denmark.

Edit: what @Wildgrapes said is a really good point I forgot to say.

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