Dynamic IP Addressing

The biggest advantages of Dynamic IP Addressing are less security risk as the computer is assigned a new IP address each time the customer logs on, they are cost effective and there is automatic network configuration (the less human intervention with network configuration the better). Dynamic addressing is usually used by ISP's so that one IP address can be assigned to several users, however some ISP's use Sticky Dynamic IP Addressing and do not change the IP address very often. Dynamic IP Addressing can be used by families with several computers or by a small business owner who has a home office. The software that comes with a router allows for Dynamic Host Configuration Protocol (DHCP) setup and assigns each computer attached to the router an IP address automatically.

In contrast, Dynamic IP addressing should not be used for VOIP, VPN, playing online games or game hosting because Dynamic IP addressing is less reliable then Static IP addressing and could cause the service to disconnect while you are on a VOIP, VPN or gaming.