Mobile internet

Tethering vs. hotspot: What’s the difference?

Mobile hotspots and tethering are two different ways of sharing a device's internet connection. Discover the key differences between tethering vs. hotspot.

When it comes to sharing your mobile’s internet connection with other devices, two common terms often come up: tethering and hotspot. Despite seeming similar, they have key differences in how they function, the methods used (USB, Bluetooth, or WiFi), and their impact on data, speed, and even battery life.

In this blog, we break down what tethering and hotspot really mean, explore various types, and compare their advantages and disadvantages. By the end, you’ll be able to decide which option best suits your needs!

In this article

What is tethering?

Tethering refers to using your mobile phone to share its cellular data with a connected device (laptops, tablets, other phones) to provide internet access. You’ll be able to use your cell phone’s data plan across multiple devices in what’s called a personal hotspot instead of relying on a public network.

Most phones contain built-in hotspots that allow phone tethering. Additionally, many phone plans and even eSIM providers like Holafly offer separate “hotspot data” you can use exclusively for this purpose.

The different types of tethering include:

Bluetooth tethering: This method uses less power but transfers data slowly.
USB tethering: This results in a reliable connection with faster speeds, but you’ll need a USB cable.
WiFi tethering: This method, also known as creating a personal hotspot, is the most common. It turns your phone into a WiFi hotspot that can conveniently support internet connections on multiple devices.

Here are some real-life examples of tethering:

USB tethering: You’re working on your laptop at a local coffee shop with an unstable or no WiFi connection, so you connect your phone and laptop via a USB cable and use your phone’s data plan instead.
Bluetooth tethering: When you need to send quick, small files from your iPad, tablet, or laptop, you pair your phone via Bluetooth to help preserve battery life and use less data.
WiFi tethering/personal hotspot: Your friends need stronger WiFi signals and speed, and you turn on your personal hotspot so everyone can connect to your data plan instead!

What is a hotspot?

We’ve already covered one way to create a hotspot: WiFi tethering, which lets you create a WiFi signal for your other devices, etc. In this way, the term tethering includes hotspots to some degree. But there’s another way to create a hotspot that functions slightly differently.

A pocket WiFi hotspot, or mobile hotspot, is another way to connect multiple devices at once through a standalone device that works the same as a phone’s personal hotspot. It lets you set up a WiFi connection for devices requiring cellular data. Essentially, it’s a wireless router that connects to your service area’s cellular tower and allows multiple WiFi-enabled devices to access the internet.

Here are some real-life examples of using mobile hotspots:

Traveling abroad: If you’re traveling to a foreign country and expect limited access to public WiFi, a mobile hotspot or pocket WiFi device is better than relying on public networks.
Business trips: Since you might require stronger and more reliable internet connectivity for all your devices, presentations, video meetings, and email communication, a mobile hotspot comes in handy to provide this without draining your phone’s battery.
Outdoor events: During camping trips or outdoor excursions, many rely on dedicated mobile hotspot devices to ensure the group can stay connected to the internet in emergencies.

Tethering vs. hotspot: The key differences

After reading about the functionality of tethering vs. hotspot, you may find them to be highly similar. However, they differ in various aspects, such as the number of devices that connect, security, speed, battery impact, and, ultimately, price.

Here are some key differences:

Number of devices:

Bluetooth and USB tethering allow one device to connect at a time. WiFi tethering and personal hotspot allows multiple, but consider that multiple devices can lead to slower internet connections.
Mobile hotspots support multiple devices simultaneously (as many as 15) and via a dedicated hotspot device. Since their sole function is to allow devices to connect to the internet (like a wireless router), the number of devices doesn’t matter here.

Security:

USB tethering (a physical link) offers the most secure internet connections, reducing the risk of unauthorized access. When it comes to Bluetooth or WiFi tethering (personal hotspots), you can always use a password.
A hotspot creates a WiFi signal using the service area’s cellular data; using a password or VPN is the only security measure you can take.

Speed:

USB tethering offers the fastest and most stable internet, using a wired connection between devices. However, this is still dependent on the connection strength of the main device. Bluetooth and WiFi tethering (personal hotspots) may vary depending on cellular signal strength and the number of devices connected.
A pocket Wifi device or mobile hotspot tends to provide fast connections due to a lack of interference from other signals. Plus, it’s built to support multiple devices simultaneously, so speed is often unaffected.

Battery impact:

Tethering via USB is less likely to drain your phone’s battery since it can use power from the device connected to the other end. Bluetooth tethering also uses less power but offers slower speeds. WiFi tethering or personal hotspots can drain your phone’s battery, but it shouldn’t be an issue if one to three devices are connected!
Pocket WiFi hotspots or mobile hotspots are designed and built to support and provide many devices with internet access, so battery drainage isn’t an issue.

Price:

Data for USB, Bluetooth, or personal hotspot tethering tends to be the same price as your normal data plans and can be offered in limited amounts. However, some eSIMs for international travel offer a separate data allowance for such purposes. Holafly also offers an unlimited data monthly eSIM that comes with an unlimited personal hotspot allowance.
For mobile hotspots and portable WiFi devices, you can expect to spend anywhere from $75 to $650 for high-spec 5G models. Plus, you’ll have to pay for the data plan as well.

Features	Tethering	Hotspot
Number of devices	Supports 1-3 devices comfortably.	Connects multiple devices (up to 15) at once.
Security	Tethering via USB is more secure.	Need strong passwords or VPN for safer connections.
Speed	USB tethering offers the fastest and most stable speeds, while Bluetooth and tethered hotspots can also offer stable speeds.	Offers fast speeds that do not get affected by multiple users.
Battery impact	Bluetooth or tethered hotspots may drain your phone’s battery.	Pocket WiFi or mobile hotspot devices have a longer battery life to support multiple connections.
Price	Uses your existing phone and plan with no extra cost.	Requires a separate device and data plan.

Pros and cons of hotspot and tethering

Now that we’ve covered the key differences between tethering and hotspots let’s analyze the pros and cons of each to help you make an informed decision.

Pros of tethering:

Share your network speed with others and other devices: If you have a relatively high internet speed (LTE or 5G), you can share your network with others and connect the rest of your devices — no extra charges or device needed.
Easy to activate: Most smartphones nowadays have built-in tethering features, which are only a matter of a few clicks. Head to your phone’s settings and mobile data connections, and toggle the hotspot/tethering button.
Available whenever: All you need is a compatible smartphone and a data plan.
Cost-effective: You don’t need extra data plans for other devices or people around you. Many data plans come with a tethered hotspot data allowance at no extra charge, and some, like Holafly Connect, even allow for unlimited tethering.

Cons of tethering:

Battery drain: A tethered hotspot can drain your phone’s battery if multiple devices are connected. However, you should be fine if only a few devices are connected.
Data limits: If you’re on a limited data plan, you might reach your limit quicker – especially if you stream videos or download large files. You can curb this by choosing plans like Holafly Connect’s unlimited data plan with unlimited tethering/personal hotspot.
Security risks: Tethering tends to require a password to connect to the device offering the network. However, if this isn’t the case, it’s as dangerous as using a public WiFi network.

Pros of mobile hotspot:

Improved battery life: Pocket WiFi or mobile hotspot devices offer up to 24 hours of WiFi on a single charge. You’ll be able to comfortably use the internet all day and prevent your phone’s battery from draining.
Faster internet speed and better connection quality: Mobile hotspot devices offer 2.4 GHz and 5 GHz frequencies, meaning you can get a stronger signal and speeds up to 50 Mbps.
Stronger security: Mobile hotspot devices contain advanced security features. You can connect to your own VPN, track who’s using your network, how much data they use, and even change/update your access credentials.

Cons of mobile hotspots:

Extra costs: You’ll need to purchase a separate mobile hotspot device and data plan.
Additional items to carry: Since you’ll need your mobile hotspot device for internet access, you’ll have to take that and its charging equipment wherever you go. While it’s not a huge addition, it may still be inconvenient for some.
Data limits: If you purchase a limited data plan, you’ll have to remain within the constraints of the limit. If you exceed the limit, your connection may be discontinued until you top up your account.

Tethering vs. hotspot: Which to choose?

Overall, choosing between tethering and a mobile hotspot depends on your usage needs, lifestyle, and budget.

If you’re an occasional internet user, frequent traveler, or a digital nomad and require a secure connection for one to two devices, tethering is a simple, cost-effective option. You can also conveniently use your phone to connect any other devices you need. On the contrary, multiple travelers, employees on a work trip, or families needing to connect to multiple devices may benefit from a dedicated mobile hotspot.

Unlimited hotspot as you travel with Holafly Connect

Whether you choose WiFi tethering (personal hotspot) or mobile hotspot, monthly eSIM data plans like Holafly Connect make it worth it. Explore over 170+ destinations under one plan, and choose a plan based on your internet needs; for example, you can avail 25 GB of hotspot if you tend to consume less data.

For only $64.90 per month, you can get unlimited data for your phone and an unlimited personal hotspot connection for your other devices or loved ones if you’re traveling together! Hotspot (and tether) until your heart’s content.

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Mahnoor Bangush

SEO Content Writer

Born and raised in Queens, New York, I'm a Psychology graduate with a passion for writing that I've been nurturing since 2019. Over the years, I've enjoyed creating meaningful content across various niches, including sports, hospitality, and career development. At Holafly, I focus on crafting useful and inspiring pieces to make your adventures more effortless. One of the best perks of this role? Creating travel content always seems to inspire my next vacation destination!

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