Most people understand that when you connect to the Internet, your Internet service provider assigns your modem and network an Internet Protocol (IP) address. This is your external or public IP address. Your router also assigns internal IP addresses to each device on your local network. IP addresses are like identifiers that make it easier to manage and organize all Wi-Fi-connected devices, from smart home gadgets and TVs to phones and laptops. This is precisely how you check who is connecting to your Wi-Fi: by looking at the assigned IP addresses.
Although external and internal IP addresses work a little differently, both accept static addresses (static IPs) or those managed by DHCP (Dynamic Host Configuration Protocol). The biggest differentiator is that a static IP is fixed or permanent, while a dynamic IP is automatically chosen and temporary. DHCP is usually the default option and probably the one your home router already uses. You can easily configure a static IP on a local network; However, getting one from an ISP is not that simple. Often, static public IP addresses are reserved for premium or business accounts.
In your router’s administrative settings, you can configure static IP addresses for different devices. This way, when you restart a device or the router, the assigned address remains the same. This is ideal for something like a shared media server. The permanent IP address makes it easier to connect to the server over multiple sessions. You always know the right address. As for which option is best for your home network, it depends. Each type of IP address has advantages and disadvantages.
Does IP type affect the performance or speed of a connection?
In terms of general performance, neither static IP addresses nor DHCP have a significant impact on the latency, speed, connection quality, or throughput of an active connection. Speed and quality are largely determined by your ISP’s network and allocated bandwidth and have almost nothing to do with the assigned IP address. The maximum speed supported by your router can also determine the wired or wireless performance of devices connected to it. The exception is when a public IP address has been previously banned or blocked by a platform or service, preventing all traffic to that address on the server side.
When dealing with public IP addresses, a static over DHCP can have a slight impact on performance, but mainly due to establishing the Internet connection and maintaining access between sessions. This is because there are fewer mismatches during the process with a static IP address, since the device or network router already knows the assignment. This does not affect the ongoing performance of internal IP address assignments, although devices with fixed IP addresses may initially establish a network connection a few milliseconds faster.
Like any modern technology, it’s a good idea to reboot your router. If you’re wondering how often you should reboot your router, experts recommend doing it once a month or even more often. This power cycle will reset many settings, but also DHCP assigned IP addresses.
Static IP versus DHCP: weighing the pros and cons
The choice between a static IP address and DHCP really depends on what you will be doing with the specific device.
A static IP address makes it easier to identify, track, and manage devices on your local network. You always know which device is which and how to connect internally, which is ideal for a media server or shared setup. Static IP addresses are more vulnerable because they are permanent and can be exploited by anyone. Routers may limit the total number of static IP addresses you can assign.
DHCP or dynamic IPs are automatically assigned and managed by network equipment; in this case, your home router. Every time a device joins the network, including when you restart your router, the DHCP IP addresses are freed and renewed. This makes it difficult to identify a specific device across sessions if you try to connect or share data. The complexity makes it harder to establish and maintain remote connections, like when trying to stream games from another device. A rugged desktop gaming PC is one of many devices that your Steam Deck can connect to locally, for example. Assigning a static IP address makes this easier. Of course, DHCP does not completely eliminate remote opportunities. You will need to locate the DHCP IP address every time a device restarts or if a connection is interrupted.
The best practice is to simply let your router manage the IP addresses (DHCP) of devices that connect and disconnect frequently. Assign a static IP address to devices that would benefit from a fixed address, such as those you connect to remotely or share with other devices. Viable static IP candidates would be a gaming console like your PS5, a gaming PC, a media server, a smart home hub, and other network-related devices.